Construction Equipment Market: Q3 Update

Industry Insights 0 Comments

 

Equipment makers report mixed Q3 results

 

The third quarter saw mixed results from equipment makers with both gains and losses across the board.

CNH and Manitowoc both reported increases in Q3 net sales of 5%1 while Kobelco2 and Volvo CE3 each saw sales drop from between 9% and 16.5% in the same period. Caterpillar also reported a +5% increase in net sales but lowered revenue estimates for the year to $66 billion from a range of $68-$70 billion citing weaker than expected global economic conditions.4

Most of the reported losses stemmed from exposure to the declining earthmoving market in China. Global demand for agriculture equipment remained solid.

 

Lower demand for equipment in China

 

The overall Chinese heavy equipment market has cooled with equipment makers Komatsu and Volvo CE now expecting demand to fall a further -25% to -40% year on year through December.

Manufacturers expect the situation to improve slightly in 2013 with the overall Chinese equipment market declining no more than -5% and the potential for a gain not ruled out. Demand for excavators in particular is expected to stabilize somewhat in January and March with worst case scenarios predicting a -20% decline.3

 

Equipment rental rates up

 

Rental rates for heavy equipment have risen +8.4% overall in the past 12 months according to the most recent July report from the Rouse Analytics Rental Metric Benchmark Service.

July’s largest one-month gains in rental rates were seen in backhoes (+2.6%), scissor lifts (+1.6%), telescopic booms (+1.5%), and hi-reach forklifts (+1.5%). Smaller one-month gains of +0.6% were seen for both wheel loader and excavator rentals.5

Sources:

  1. http://investors.cnh.com/phoenix.zhtml?c=61651&p=irol-newsArticle&ID=1752007&highlight=
  2. http://www.khl.com/magazines/international-construction/detail/item80165/Kobelco-construction-machinery-sales-drop
  3. http://www.khl.com/magazines/construction-europe/detail/item80076/Volvo-Construction-Equipment-sales-drop
  4. http://www.khl.com/magazines/international-construction/detail/item79982/Caterpillar-sees-5pc-revenue-increase
  5. http://www.forconstructionpros.com/press_release/10820251/construction-equipment-rental-rates-up-84-in-12-months
Leave a Comment
Sign In or create an account to leave a comment.

Connect with Us

Find Equipment & Trucks

We sell thousands of items each month at unreserved public auctions around the world. Search Equipment Listings.

Find Out What Your Equipment Is Worth

Create a free account and access 2 years of equipment selling prices.

Join us at these Events

Apr 10-12, 2014​​ Truck World Toronto, ON​​