In 2020, the COVID-19 pandemic affected all sectors of the economy, including the construction machinery industry. Industry statistics from most countries showed a decrease in the number of international transactions caused by weakening economic conditions and the instability of currencies against the US dollar. Even in developed countries sales of construction equipment decreased by 5-20%.
The crisis has passed, and today, in 2022, we are witnessing an economic recovery. The first trends we spotted were population growth and an increase in demand for housing. These trends stimulated a significant increase in demand for construction equipment. The rapid recovery of the mining, energy, and forestry industries contributed to this process as well. As a result, the construction equipment industry is experiencing a shortage of raw materials and qualified workers. This has led to an increase in prices for finished products.
The second trend is the global “greening” of the industry – many companies, including WEITAI, have focused on the development and production of environmentally friendly machines. The result of these efforts is a variety of next generation fully electric earthmoving equipment that produces minimal or even zero emissions entering the market this year.
The third trend is the migration of major industry events, including international conferences and exhibitions, to online or hybrid formats. Due to COVID-19 related travel restrictions and social distancing requirements, we have learned how to use digital tools for effective remote communication. The heavy machinery industry has developed innovative events for product launches, panel discussions, and webinars.
We also noticed that the demand for some models of compact machines has increased markedly. For example, in 2021, around 75,000 mini excavators were sold in Europe alone. The ‘hottest’ category was 1-5 metric ton equipment. The largest markets were Italy, the Netherlands and France.
We are feeling optimistic about the future of the construction equipment industry and are looking forward to contributing to its healthy growth and development by designing and manufacturing cost-effective and environmentally friendly machines.