Global construction equipment sales for 2022 revealed
30 March 2023
Global construction equipment sales fell 7% last year from the record high established in 2021, according to the latest information from Off-Highway Research. The downturn was entirely due to the collapse of demand in China – sales in the world excluding China grew 7% in 2022.
The forecast for 2023 is a 7% decline in global sales. This is a slightly steeper downturn than envisaged a year previously, due to the weakness of the Chinese market. Stripping China out of the equation, the remaining countries of the world will only see a 5% downturn overall.
Off-Highway Research would still classify the 2022-2025 downturn as a soft landing. Only single-digit year-on-year falls in equipment sales are expected, and the volume of machines sold throughout the forecast period should stay above one million units per year. Prior to the current up-swing, such a volume was only achieved twice before.
The forecast is based on the premise that infrastructure investment will be strong and that although interest rates are rising, they will only slow down residential construction, rather than stop it entirely.
However, there are risks to the forecast and they are almost entirely on the downside. Inflation was a serious issue throughout 2022 and although improving, it remained high in early 2023. Add to that the war in Ukraine, which continues to heighten inflationary pressures worldwide and is therefore also exerting upward pressure on interest rates.
Off-Highway Research’s Global Market Review is available now to all subscribers. Contact firstname.lastname@example.org for more information about our subscription packages. The report can also be bought by non-subscribers here.