NEWS REPORT

Yellow Table

Equipment top 50
The global recession has caused seismic changes in the construction equipment industry, with Chinas leading manufacturers storming ahead of many of the established players in the industry. Chris Sleight reports.
n last years Yellow Table, the highest placed Chinese manufacturer was XCMG at no. 17. Turn the page and look at this years table and you will see that the same company is now in the global top 10, with Sany and Zoomlion just behind. But perhaps what is more striking are the companies that this Chinese trio has overtaken. They have moved ahead of the likes of CNH, JCB, John Deere and Kobelco some of the household names of the construction equipment industry. In fact CNH and John Deere have dropped out of the global top 10 for the first time since the league table was established eight years ago. Besides XCMG, the other new addition to the top 10 is Metso Minerals, which along with the likes of Atlas Copco and Sandvik, which also have a big presence in mining, is one of the few developed world manufacturers to move up the table this year. The other notable change in the top 10 is Terexs fall from no. 3 stop last year to no. 7 a sign that it has been hit harder than many of its peers by the effects of the recession. However, the biggest fall from grace is arguably for CNH, which finds itself 10 places lower this year than last, due to a near -60% fall in its construction equipment revenues. The biggest fall throughout the table however was that of Hyundai, which slipped -12 places from no. 18 in the 2009 edition of the table to no. 30 in this years.

By country
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US Japan China 7.7%

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companies in the league table improved their positions compared to last year. This included two new entries at the foot of the table Chenggong at no. 45 and Changlin at no. 50, with Sunward just missing out in 51st position. In Dollar terms the Chinese manufacturers revenues came to US$ 13.2 billion, just an +18% rise on last years figure of US$ 11.2 billion.

However, the overall downturn in the global industry meant this equated to a vastly increased slice of the pie. As a result of this rise, the proportion of the top 50s revenues accounted for by Chinese manufacturers almost doubled from 6.7% in 2009 to 12.2% this year. One of the knock-on effects of this is that it has also increased the proportion of the worlds construction equipment built by Asian manufacturers. Last year saw just over 40% of the Top 50s revenues attributed to companies headquartered in Asia, a sharp hike from the 33.7% seen in 2009. The proportion of the market enjoyed by North American and European-owned manufacturers fell as a result, with each region claiming about a 30% share. Again, this was quite a turn-

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29.3% 36.1% 23.9% 22.7% 12.2% 11.3% 11.5% 9.4% 8.6% This year Last year

PERCENTAGE SHARE

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Germany Finand 3.4% 3.7% 3.1% 2.4% 2.0% 3.0% 1.8% 2.2% 0.9% 0.8% 0.8% 0.6% 0.6% 0.6% 0.4% 0.4% 0.2% 0.4% 0.2% 0% 0% 0.2%

By region
Rest of the World 0.4%

South Korea UK France Switzerland

Europe 30.2%

Top players
The no. 3 spot vacated by Terex was taken by Hitachi, while the perennial no. 1 and no .2 in the industry Caterpillar and Komatsu remained unmoved. Privately owned Liebherr moved up the table to no. 4, based on an estimate of its revenues made by iC, while Volvo stayed in no. 5 spot. Further down the table, the story was again about the massive gains made by Chinas manufacturers. Besides the trio of XCMG, Sany and Zoomlion, there were significant rises for Lonking and Shantui, but all nine Chinese
India Austria Italy South Africa Russia Canada

North America 29.5%

Asia 39.9%

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NEWS REPORT
Yellow Table

EQUIPMENT TYPES COMPACT & UTILITY LIFTING & ACCESS

Construction equipment Last year/ sales 2009 Share of Rank Company change Country (US$ million) total 1 Caterpillar 1 US 18148 16.8% 2 Komatsu 2 JP 12532 11.6% Hitachi Construction Machinery 4 1 JP 5815 5.4% 3 4 Liebherr** 6 2 DE 5667 5.2% 5 Volvo Construction Equipment 5 SE 4658 4.3% 6 Sandvik Mining and Construction 7 1 SE 4262 3.9% 7 Terex 3 -4 US 4043 3.7% 8 Atlas Copco CMT 9 1 SE 3385 3.1% 9 Metso Minerals 13 4 FIN 2882 2.7% 10 XCMG 17 7 CN 2825 2.6% 11 Sany Heavy Industries 20 9 CN 2781 2.6% 12 Zoomlion** 22 10 CN 2781 2.6% 13 Kobelco Construction Machinery 15 2 JP 2672 2.5% 14 John Deere 10 -4 US 2634 2.4% 15 Doosan 11 -4 KR 2404 2.2% 16 Manitowoc Crane Group 12 -4 US 2285 2.1% 17 JCB 14 -3 UK 2182 2.0% 18 CNH 8 -10 US 2120 2.0% 19 Wirtgen Group 19 DE 1639 1.5% Oshkosh Access Equipment (JLG) 16 -4 US 1499 1.4% 20 21 Liugong 26 5 CN 1490 1.4% 22 Putzmeister** 25 3 DE 1166 1.1% 23 Tadano 24 1 JP 1141 1.1% 24 Lonking** 34 10 CN 1034 1.0% 25 Shantui 36 11 CN 1016 0.9% 26 Ammann 28 2 CH 994 0.9% 27 Sumitomo Heavy Industries 23 -4 JP 972 0.9% 28 Bauer** 31 3 DE 958 0.9% 29 Manitou 21 -8 FR 950 0.9% 30 Hyundai Heavy Industries 18 -12 KR 932 0.9% 31 Wacker Neuson 29 -2 DE 829 0.8% 32 Hiab 27 -5 FIN 789 0.7% 33 Fayat Group 30 -3 FR 753 0.7% 34 Astec Industries 35 1 US 738 0.7% 35 Xiamen Xiagong Group** 37 2 CN 732 0.7% 36 Palfinger 33 -3 AT 702 0.6% 37 Furukawa* 39 2 JP 653 0.6% 38 Kato Works* 46 8 JP 566 0.5% 39 Takeuchi* 38 -1 JP 546 0.5% 40 Kubota 32 -8 JP 533 0.5% 41 Telcon** 43 2 IN 464 0.4% 42 BEML** 49 7 IN 436 0.4% 43 Aichi* 40 -3 JP 427 0.4% 44 Merlo 45 1 IT 424 0.4% 45 Chenggong NEW CN 337 0.3% 46 Bell Equipment 41 -5 ZA 320 0.3% 47 Haulotte Group 42 -5 FR 281 0.3% 48 Boart Longyear 44 -4 US 241 0.2% 49 GAZ Group** 47 -2 RU 240 0.2% 50 Changlin NEW CN 215 0.2% TOTAL 108093 Mini and/or Midi Compact or Excavators Skid-steer (0 - 13 t) Loaders

Backhoe Loaders

Powered Access

Telescopic Handlers

Cranes

Concrete Equipment

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* - fiscal year, ended March 31st 2009

** - estimate

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Yellow Table

CONCRETE, CIVIL ENGINEERING & HEAVY CONSTRUCTION ROCK & QUARRYING

Dozers and/or Crawler Loaders Hydraulic Breakers/ Demolition Crushing & Attachments Screening

Compaction/ Road Building

Graders

Excavators (13t+)

Wheeled Loaders

ADTs

Rigid Haulers

Rock Drilling

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Website www.caterpillar.com www.komatsu.com www.hitachi-c-m.com www.liebherr.com www.volvo.com www.sandvik.com www.terex.com www.atlascopco.com www.metso.com www.xcmg.com www.sany.com.cn www.zljt.com www.kobelco-kenki.co.jp www.deere.com www.doosaninfracore.co.kr www.manitowoc.com www.jcb.com www.cnh.com www.wirtgen-group.com www.jlg.com www.liugong.com www.putzmeister.de www.tadano.co.jp www.chinalonggong.com www.shantui.com www.ammann-group.ch www.shi.co.jp www.bauer.de www.manitou.fr www.hhi.co.kr www.wackerneuson.com www.hiab.com www.fayat-group.com www.astecindustries.com www.xiagong.com www.palfinger.com www.furukawakk.co.jp www.kato-works.co.jp www.takeuchi-mfg.co.jp www.kubota.co.jp www.telcon.co.in www.bemlindia.com www.aichi-corp.co.jp www.merlo.com www.cgloader.com www.bell.co.za www.haulotte.com www.boartlongyear.com www.gazgroup.ru www.cn-changlin.com

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NEWS REPORT
Yellow Table

Top 10
around from the situation a few years ago when the US construction boom saw the proportion of the market claimed by North American manufacturers hit a peak of nearly 48% in 2005. These trends seem to illustrate a key point about the nature of the industry. While many of the companies in the Yellow Table would describe themselves as global manufacturers, the fact remains that companies tend to be strongest in their home markets. This also means they are more exposed to the ups and downs of these traditional markets, which perhaps explains a lot of the changes in this years rankings. The recession has been longest and most pronounced in the US construction market, so it is perhaps to be expected that North American manufacturers have fallen furthest. Things have been tough, but perhaps not so prolonged in Europe, which has meant falls for the European manufacturers, but generally not as severe as those of their US-owned counterparts. In contrast, China has continued to grow, albeit at a reduced pace, and this has clearly fuelled the rise of the countrys manufacturers. There has also generally been more stability in other emerging markets around the world, and these days such countries form a big part of Chinas exports,

Company shares
Caterpillar 16.8% Others 40.6% Komatsu 11.6% Hitachi 5.4% XCMG 2.6% Mettro Minerals 2.7% Atlas Copco 3.1% Terex 3.7% Liebherr** 5.2% Volvo 4.3% Sandvik 3.9%

Top 50s revenues fall by -23.6%

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he global recession took its toll on the construction equipment industry last year, with revenues for the 50 largest manufacturers falling -23.6% to US$ 108 billion, from 2008s peak of US$ 168 billion. This has taken the industry back to around 2005 levels. It was the rst time since the Yellow Table was established in 2002 that the global industry has seen a decline. Indeed, in the preceding six years annual growth has been at least 15%.
40%

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Recession impact in 2009

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All this leaves the tantalising question of how the Yellow Table will look next year. Revenues for the Europeans and Americans will undoubtedly bounce back from the lows seen in 2009, but it remains to be seen whether this growth will see them move back up the league table. Probably not. Chinese manufacturers are

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so again this will have helped the countrys construction equipment manufacturers.

also expecting growth, and for the next year at least it is likely to be more robust than any improvements in the developed world markets. The other big question of course is over mergers and acquisitions. There are clearly several distressed companies in the industry, and it remains to be seen if they will recover, fall into bankruptcy or be sold-off (either in full or piecemeal). The end of last year has already seen Terex sell its mining equipment business, and this is unlikely to be the last significant deal in the current industry trough. The question is who will the buyers be? The acquisition of Cifa by Zoomlion and Lebrero and Serviplem by Telcon in recent years shows that manufacturers in the emerging markets may well have a part to play in the future consolidation of the industry. iC

Methodology
Positions in the Yellow Table are based on sales revenues for the 2009 calendar year in US Dollars. Where appropriate currencies have been converted to Dollars based on the average exchange rate over the course of 2009. Data was gathered from a variety of sources including audited accounts, company statements and reputable third-party organisations such as Reuters. In Japan, India and certain other countries, the use of the scal year (ending March 31st) has made it impossible to establish calendar year information. In these cases, scal year results were used. In the cases of some privately-owned companies, audited accounts were not available, in which case iC has made an estimate of revenues based on historical data and industry trends. While every effort has been taken to ensure information in this report is accurate, iC does not accept any liability for errors or omissions. If you would like to comment on the Yellow table, or feel your company should be included, please e-mail the editor at chris.sleight@khl.com

120 100 80 60 40 20 0 2002 2003 2004 2005 2006 Revenues US$ billion 2007 2008 % Growth

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