Construction equipment sales on course for ‘record’ year
October 06, 2021
Global sales of construction equipment in 2021 are expected to reach a record high of 1.13 million in volume terms, according to information from Off-Highway Research.
The trend is expected to continue in 2022, with many OEMs reporting full order books.
Sales in North America are expected to grow by a record-breaking 12%.
Stimulus spending in China during 2020 as a result of the Covid-19 pandemic kept global construction equipment sales at an unexpectedly high level last year and that trend will continue in 2021 as other markets bounce back.
During a live webinar, Chris Sleight, managing director of Off-Highway Research, confirmed that while demand in China is expected to decline by more than originally thought, good recoveries in other key markets, such as Europe and North America, should take sales to record levels.
It was also noted that, although China is expected to see a decline in sales this year, it is from an extremely high level – sales increased by around 30% in 2020.
Sales in Europe are expected to grow by around 15% this year.
According to Off-Highway Research, construction equipment sales would have been higher without the current supply chain issues that are impacting the industry.
Sleight added that it was “unusual” for the market to have such a sustained period of high sales, saying, “The peak in global equipment sales which began in 2017 has already been extended beyond what would otherwise be expected, and the forecast foresees these very
high levels of sales continuing. This prolonged peak in construction equipment sales is unusual, if not unprecedented.”
He added, “This could lead to the build-up of a large population of relatively young equipment which could be a barrier to new sales in the future, particularly if construction activity falls away.”