Quantcast

Global sales of construction equipment are forecast to grow 3.9 per cent in unit terms in 2016, to 760,508 machines, according to specialist economic forecasting and market research consultant, Off-Highway Research.

The expected improvement follows a weak performance in 2015, when global unit sales fell more than 10 per cent from the total of nearly 818,000 machines sold in 2014. In 2016, growth is expected in the European, North American and Indian equipment markets. Off-Highway Research also forecasts a stabilisation in China, where sales of construction equipment have fallen from a peak of 435,070 units in 2011 to a projected 131,345 machines in 2015 – a decline of 70 per cent in the space of four years.

“There can be no doubt that 2015 was a tough year for the global equipment industry, due to slowing world economic growth and weak commodity prices,” said Off-Highway Research managing director David Phillips. “Unit sales fell to their lowest since the crisis years and the drop in the Chinese market was particularly brutal. However, there were improvements in several developed countries which helped offset some of these losses.”

The gradual improvement in Europe which began in 2014 is expected to continue this year, with unit sales rising from a provisional 125,705 units in 2015 to 130,503 machines. Similarly, the buoyant North American market should rise a further four per cent to 186,025 machines. Continued steady improvements are expected in the Indian construction equipment market, with unit sales expected to rise to 46,414 machines, compared to 38,554 in 2015. Meanwhile in China, the market is expected to show an uptick of around four per cent, with sales stabilising at 137,820 units.

In Japan, construction equipment sales are expected to fall from 79,998 units in 2015 to 73,825 machines in 2016. The key drivers of this are a tailing-off of reconstruction work following the 2011 earthquake and Tsunami and the winding down of the government’s economic stimulus programmes.

Mr. Phillips said, “Off-Highway Research’s forecast is for the start of a gradual return to health in the global construction equipment market in 2016. However, as has been the case since the crisis years of 2008 and 2009, business confidence remains fragile, and the uncertain geopolitical outlook around the world could have a negative impact on the sector.”

Off-Highway Research will exhibit at Bauma in hall B5, stand 227/B. The show will see it present updated forecasts for the global industry across its Chinese, European and Indian subscription services, its Chinese, Indian and International databases and the global Volume & Value service.

About Off-Highway Research
Off-Highway Research is a management consultancy specializing in the research and analysis of international construction, and agricultural equipment markets, and is the largest of its kind in the world. The consultancy was formed in 1981 as part of The Economist Intelligence Unit (EIU) and is now part of KHL Group, the world’s largest and most respected provider of international construction information. Off-Highway Research offers a unique level of international research expertise to the construction, earthmoving, mining, industrial and agricultural equipment industries.

Data for 2015 quoted in this press release are provisional figures. Final figures will be published to Off-Highway Research’s subscribers in March, and will form part of the updated set of forecasts presented at Bauma.

The types of equipment covered by Off-Highway Research are: articulated dump trucks, asphalt finishers, backhoe loaders, crawler dozers, crawler excavators, crawler loaders, mini excavators, motor graders, rigid dump trucks, rough terrain lift trucks (masted and telescopic handlers), skidsteer loaders, wheeled excavators and wheeled loaders. In some markets, ride-on compaction equipment and mobile cranes are also included.

David C.A. Phillips, Managing Director, Off-Highway Research
An economics graduate from London University, David Phillips joined the Economist Intelligence Unit (EIU) in 1977 where he worked as a general industry analyst. Following a two year assignment in Saudi Arabia, he rejoined the EIU in 1981 with the formation of its specialist Off-Highway Research Division, becoming General Manager .

In 1994 he led a Management Buy Out, and became the owner and Managing Director of the newly privatised Off-Highway Research. This management consultancy specialises in the research and analysis of the international construction equipment industry, and is now the largest of its kind in the world.

Off-Highway Research has three research offices in London, Beijing and New Delhi, and representative offices in Tokyo and New York. Over the last 30 years, research has been conducted in over 50 countries for more than 750 clients, who are drawn from the industry’s leading equipment manufacturers, component suppliers, distributors, financial institutions and government organisations.

The majority of the research findings are published through a wide variety of subscription services and databases, full details of which can be found on www.offhighway.co.uk

In June 2015, Off-Highway Research was acquired by KHL, the international media group. David Phillips will continue operating as Managing Director, and will continue to play a key role in the company’s future development.

Volume:
1
Issue:
27
Year:
2016

Stay in the loop
Sign up to get all the latest news and stories from Industry Today.

no thanks

Request Media Kit
Fill out the form below and we will send you our media kit with pricing details

no thanks
Top