2014-2015 was a tough year for the manufacturers of construction equipment, with the world’s 50 largest companies seeing a fall in 2.6% of revenue.
Not so, however, for XCMG: a Chinese construction equipment company that has jumped three places, from 11th to 8th, emphatically securing its place amongst the 10 largest manufacturing companies in the world. This fantastic leap has also cemented its position as the largest such company in its homeland, partially thanks to its recent acquisition of Germany’s Schwing company. This put XCMG in the unique position of being the only of China’s equipment manufacturers to see a financial improvement last year whilst being close along-side some of the industry’s heaviest fallers.
Another factor contributing to XCMG’s improved performance is the focus they place on producing equipment designed to handle smaller construction jobs. A wise choice it turns out for Gold Bug Equipment customers, as the mining sector and its need for large scale earth-works and machinery has taken a downturn as a result of low commodity prices driven by developing nations’ reliance on the evulsion and exportation of raw materials. With such an abundant resources, it has become less necessary to place as much importance on acquiring them.
What this means is that smaller construction projects are becoming ever more the focus of the companies that create the machinery to service them. An exciting prospect, because as the decline in the industry begins to slow, it suggests that the habitual down cycle in production is coming to an end. With an upturn on the horizon, XCMG is poised to make a big splash in the equipment manufacturing scene. This could be great news for our customers.
To take advantage of the developments and advancements in construction equipment that this will bring, the best place to visit is Gold Bug Equipment as we’re the premier retailer of all XCMG machinery and parts. With access to the latest and greatest that XCMG and other brands have to offer, Gold Bug’s personal touch ensures that whatever the project, builders and developers will find exactly what they need for the job at hand.
Graphs provided by khl.com.
