According to the “2021 Global Top 50 Construction Machinery Manufacturers List” released by the Organizing Committee of the Global Top 50 Construction Machinery Summit on April 28, 2021, due to factors such as the new crown pneumonia epidemic, the sales of the top 50 construction machinery manufacturers in the world are slightly lower than the same period last year. The rate fell by 2.87%. Among them, Chinese companies performed well. Xugong Group Construction Machinery Co., Ltd. entered the world’s top three for the first time. A total of 11 Chinese construction machinery manufacturers were listed in the global TOP50, with total sales of 50.733 billion US dollars, a year-on-year increase of 40.03%. The proportion of the total TOP50 rose to 26.48%. Global sales drop by 19% in 2020
It can be seen from OffHighway Research’s report that due to the impact of the new crown pneumonia epidemic in 2020, the global sales of construction machinery and equipment will drop to 891,000 units in 2020, and men will drop by 19%. If China is excluded from global data, sales of equipment in other parts of the world will fall by 27%, and the impact of the new crown epidemic will be even more pronounced. The global total in 2020 will fall to its lowest level in nearly a decade.
Figure 1: 2015-2020 whole-process sales of construction machinery and equipment (unit: 10,000 SET)
The total sales volume of the world’s top 50 declined slightly by 2.87%
On April 28, 2021, a press conference of the “2021 Global Top 50 Construction Machinery Manufacturers List” hosted by the Organizing Committee of the Global Top 50 Construction Machinery Summit and China Construction Machinery Magazine was held in Beijing. The press conference announced the “Top 50 Global Construction Machinery Manufacturers in 2021” list. In 2020, affected by factors such as the new crown pneumonia epidemic, the sales of the world’s top 50 construction machinery manufacturers fell slightly by 2.87% year-on-year to US$191.582 billion.
Thanks to the Chinese government’s effective and powerful control of the new crown pneumonia epidemic and the rapid recovery of the Chinese economy, the outstanding performance of Chinese construction machinery manufacturers. In the 2021 top 10 list, XCMG Construction Machinery has entered the top three in the world this is the first time that a Chinese brand has entered the top three. Sany Heavy Industry and Zoomlion ranked fourth and fifth in the world, respectively. Companies in other countries remained unchanged or declined to vary degrees.
Top 50 Chinese companies have the largest sales in the world
From 2019 to 2021, the proportion of total sales of Chinese manufacturing enterprises has increased year by year. In 2021, a total of 11 Chinese construction machinery manufacturers entered the global TOP50 list, with total sales of 50.733 billion U.S. dollars, an increase of 40.03% year-on-year, and sales accounted for 26.48% of the global TOP50 total sales.
Overcapacity, new-type urbanization, investment and mergers, and internationalization strategies are the keywords of the construction machinery industry in the past year. my country’s urbanization rate rose from 27.99% in 1993 to 52.27% in 2012, which has brought strong demand to the construction machinery industry and is the golden 10-year background of the construction machinery industry. Although the new leadership team has given unlimited hopes for the new urbanization, it is the general trend to shift from an investment-driven economy to a domestic demand-driven. In addition, the ownership of my country’s construction machinery industry has reached a certain scale. The urbanization rate has an impact on industry sales. The contribution margin effect is also diminishing.
According to the “Analysis Report on Production and Sales Demand and Investment Strategic Planning of China’s Construction Machinery Manufacturing Industry” released by Qianzhan.com, the relative valuation of the construction machinery industry reached its peak in 2010, driven by the 4 trillion infrastructure investment. According to the style of the new leadership team, a policy dividend of 4 trillion yuan should be hard to come by in the future. In 2011, the Yongwen Railway accident, the Japanese nuclear crisis, high inflation, and the real estate bubble, and the slowdown of the overall macroeconomic investment environment in 2012, caused the construction machinery industry to experience a serious decline in 2012, with the time and magnitude greatly exceeding market expectations. The market is full of sorrows that the construction machinery industry has entered a long winter.
The downstream demand of the construction machinery industry has fallen to a trough, with serious overcapacity, and the capacity utilization rate in the construction machinery industry has continued to decline. With huge social holdings, overdrafts in demand, slowing down of economic and infrastructure investment, and serious credit sales risks, even the industry’s leading companies Sany Heavy Industry and Zoomlion have become open and intensified.
In the context of the transformation and upgrading of my country’s economic structure, industries that rely on investment for rapid growth will be difficult to maintain. Investment-driven industries, including construction machinery, are facing the inflection point of the growth curve. With domestic demand declining, seeking overseas development has become the transformational thinking of many companies.
From a medium and long-term perspective, in the future, my country’s construction machinery industry will change from the past “high-speed growth” to “steady growth”. The era of sharing food for the whole people has passed, and future development will truly test the innovation ability, resilience, and trend-forward ability of construction machinery entrepreneurs.
Generally speaking, the current situation in the construction machinery industry is not very good, but in the long run, there is still room for growth.