China plays catch up with the West

Chinese manufacturers growing exports of machinery, but remain behind Western manufacturers

Chinese companies have a way to go to catch up with Western manufacturers, says Daniel Moffat of Moffat Consulting.

RELATED ARTICLES: AECOM buys out KPK, expands Asian footprint | Bauer MD warns European manufacturers to take China seriously | Caterpillar sending Chinese equipment to Middle East and Africa

Chinese companies may become the world’s second largest exporter of construction equipment but they will remain some way behind established western manufacturers, says Daniel Moffat of Moffat Consulting.

Brazil is considered one of the most exciting and competitive markets as the industry heads into 2013 attracting attention from almost all the major manufacturers. However Moffat believes Chinese manufacturers may be disappointed if they are looking for a fast return from the market.

“It will take some time for them to pose a threat to established suppliers. In late 2011 construction equipment exports from the USA stood at $153 billion global, with a 15.7% market share, followed by Germany (11.5%), Japan (10.8%) and China (10.2%). The Far East is emerging as a rival to traditional players like Cat and Komatsu and Latin America is firmly its sights,” he said.

“Many of the worlds leading brand manufacturers are also currently operating in Brazil, with distribution partners or manufacturing partners. In terms of volume, the leaders are clearly Caterpillar and Case, with Caterpillar providing one in every five machines sold into Brazil. Marques like Volvo, Komatsu, New Holland, JLG, JCB, Genie, FIAT, and Hyundai are also strong ‘second tier’ brands.

“It is too early for brands like XCMG, Sany and Liugong to compete with the leaders, having made no significant impact on the overall Brazilian market.”

0 0 vote
Article Rating


Most Popular

To Top