Did you know that there is a version of The Construction Index for the USA? Visit the site No thanks
Follow us on Twitter Follow us on LinkedIn Follow us on Instagram
Daily construction news
Weekly plant news

Construction News

Wed March 29 2017

Related Information
Related Information
Related Information
Related Information

News » Plant » Global plant sales forecast to start growing » published 21 Jan 2016

Global plant sales forecast to start growing

Industry analysts believe that global plant sales volumes bottomed out in 2015 and are now set to start growing again.

The sales slowdown in 2015 is generally attributed to the decline in oil and commodity prices, leading to infrastructure projects around the world being stalled. Despite the fall in oil prices continuing to play havoc with the financial markets, Off-Highway Research believes that global sales of construction equipment will grow 3.9% in unit terms in 2016.

This would put the world market at 760,508 machines.

Global unit sales fell more than 10% in 2015 from nearly 818,000 machines sold in 2014 to around 731,000.

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% over 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 4% to 186,025 machines. Continued steady improvements are expected in India, 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 upturn of around 4%, with sales stabilising at 137,820 units.

Since the 2011 earthquake and Tsunami, the Japanese market has seen strong growth but is now retrenching again as reconstruction work tails off. Construction equipment sales in Japan are expected to fall this year from 79,998 units in 2015 to 73,825 machines.

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.”
 

Global Unit Sales of Construction Equipment by Region (2010-2019)

 

Europe

North
America

Japan

China

India

Rest of
the world

Total

2010

100,993

90,600

37,060

401,480

42,811

99,175

772,119

2011

123,706

124,215

47,085

435,070

54,053

240,810

1,024,939

2012

118,899

146,830

64,860

290,205

50,795

247,745

919,334

2013

111,856

158,096

90,830

273,720

42,708

192,292

869,502

2014

124,783

171,310

84,225

209,757

36,808

191,034

817,917

2015*

125,705

177,935

79,998

131,345

38,554

177,973

731,510

2016*

130,503

186,025

73,825

137,820

46,414

185,921

760,508

2017*

132,668

175,690

71,620

147,430

54,175

189,365

770,948

2018*

131,247

160,610

71,650

156,985

59,280

190,497

770,269

2019*

133,353

167,900

74,305

169,375

63,060

200,948

808,941

 
 

* = forecast

 

MPU

Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News, Contract News & Supplier News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.

This article was published on 21 Jan 2016 (last updated on 21 Jan 2016).

More News Channels