China’s stimulus a huge boost for equipment sales
By Andy Brown28 May 2021
Global construction equipment sales were stronger in 2020 than had previously been forecast, due to the spending stimulus implemented by China as a reaction to the pandemic and construction work being deemed ‘essential’ in large parts of the world, according to Off-Highway Research.
Before Covid-19 Off-Highway had predicted that global equipment sales would see a modest downturn in sales, following the peaks of the two previous years. The overall decline was expected to be approximately 5%.
However, following Covid-19 the Chinese government launched a large-scale stimulus package. The huge spending saw the market rise from already buoyant levels of 2019 by a further 30%. Construction equipment sales rose to more than 412,000 units, and more than 480,000 units if compaction equipment and mobile cranes are included.
China’s remarkable growth in 2020, combined with other markets around the world not declining as heavily as feared - because work on many construction projects continued - has led to sales being better in 2020 than previously expected prior to the outbreak of Covid-19.
Read Off-Highway Research’s full market report – including predictions for the future of global equipment sales – in the June issue of International Construction magazine.