Global Construction Machinery Sales Rxpected to Decline by 16% in 2020
Off-Highwayresearch, a market research and forecasting company, reported that the COVID-19 epidemic will lead to a decline in the sales of construction equipment in almost all countries in the world this year. It is estimated that the global sales of construction machinery will drop by 16%, but if it is not China, the situation will be even worse.
China's stimulating policy is expected to boost the sales volume of China's construction machinery market by 14%, making the sales volume of China's construction machinery reach the highest level since the stimulating prosperity in 2010-2011. Before the outbreak of the COVID-19 epidemic, the sales volume of construction machinery in China is expected to decline in 2020 because the market has exceeded the cycle peak.
Kris Slater, general manager of Off-Highwayresearch, said: "Since April, the Chinese market has experienced amazing growth, which will undoubtedly alleviate the blow to the global construction machinery. We predict that China's economy will achieve a soft landing in 2021. However, we also noticed that after the stimulating prosperity in 2010-2011, China's construction machinery industry experienced a long and painful recession, and I hope they can learn from historical experience. "
If China is excluded from the global data, the impact of COVID-19 epidemic will be more obvious. In 2020, equipment sales in other parts of the world will drop by 27%. This will reduce the turnover to the lowest level since 2010. However, Off-HighwayResearch expects growth to resume in 2021.
Global sales of construction machinery
The figure shows the historical sales volume (red), the pre-epidemic forecast of COVID-19 (gray) and the revised forecast (orange).
"These predictions are based on two key assumptions," Sleight said. "First of all, we assume that the worst time of the COVID-19 epidemic has passed. If the second wave of infection breaks out in the northern hemisphere in winter, the response will be more targeted than the comprehensive blockade. Second, we assume that the policy responses of governments around the world will remain wise and supportive. We must help companies that can survive through the current difficulties and protect employment opportunities. We are now looking for stimulating spending to revive economic growth. "
China's stimulating policy is expected to boost the sales volume of China's construction machinery market by 14%, making the sales volume of China's construction machinery reach the highest level since the stimulating prosperity in 2010-2011. Before the outbreak of the COVID-19 epidemic, the sales volume of construction machinery in China is expected to decline in 2020 because the market has exceeded the cycle peak.
Kris Slater, general manager of Off-Highwayresearch, said: "Since April, the Chinese market has experienced amazing growth, which will undoubtedly alleviate the blow to the global construction machinery. We predict that China's economy will achieve a soft landing in 2021. However, we also noticed that after the stimulating prosperity in 2010-2011, China's construction machinery industry experienced a long and painful recession, and I hope they can learn from historical experience. "
If China is excluded from the global data, the impact of COVID-19 epidemic will be more obvious. In 2020, equipment sales in other parts of the world will drop by 27%. This will reduce the turnover to the lowest level since 2010. However, Off-HighwayResearch expects growth to resume in 2021.
Global sales of construction machinery
The figure shows the historical sales volume (red), the pre-epidemic forecast of COVID-19 (gray) and the revised forecast (orange).
"These predictions are based on two key assumptions," Sleight said. "First of all, we assume that the worst time of the COVID-19 epidemic has passed. If the second wave of infection breaks out in the northern hemisphere in winter, the response will be more targeted than the comprehensive blockade. Second, we assume that the policy responses of governments around the world will remain wise and supportive. We must help companies that can survive through the current difficulties and protect employment opportunities. We are now looking for stimulating spending to revive economic growth. "