Sluggish economic recovery and sluggish downstream. In 2016, the global construction machinery market was 688.94 billion U.S. dollars, an increase of only 0.6% over the same period of previous year. The market scale in 2017 is expected to slightly increase by 0.8% over the same period of last year to reach 694.51 billion U.S. dollars.
Lack of market recovery also affected output and investment. In 2016, the global construction machinery industry continued its negative output growth, down 4.5% YoY to US $ 6025.4bn. It is still expected to decline 4.9% YoY in 2017 to US $ 573.0B. In 2016, the growth rate of capital construction expenditure in the global construction machinery industry decreased from positive to negative, down 7.9% from the same period of previous year. In 2017, the industry capital expenditure will still drop by 7.0% from the same period of last year. It is estimated that industry investment will achieve a slight rebound of 0.2% by 2020.
Affected by the sluggish output and declining investment, the profitability of the industry also deteriorated. Operating profit of the global construction machinery manufacturing industry continued to decline in recent years. Total operating profit in 2016 decreased by 3.8% as compared with the same period of last year. Forecast results show that until 2018 global construction machinery industry profitability is expected to improve, total operating profit achieved 2.1% positive growth.