JCB set new records in 2007
JCB say they enjoyed their best-ever year in 2007 as sales and global market share rose to all-time highs.
Last year the company’s turnover increased to a record £2.25 billion, compared to £1.75 billion in 2006. This success was achieved as JCB sold more than 72,000 machines, another record which saw year-on-year sales increase by 30% – a full 18% above the market growth. At the same time, the company’s share of the world construction equipment market rose to 12%, up from 10.4% in 2006.
In 2007, India overtook the UK as JCB’s single largest market with sales of more than 17,000 machines, up from 10,800 machines in 2006.
And while JCB retained their position as the world’s third-largest construction equipment manufacturer by volume, they closed the gap on second place significantly. The company retained its position as the world’s number one backhoe manufacturer, producing one out of every three machines sold globally. JCB were also the world number one manufacturer of telescopic handlers in 2007.
News of the company’s success comes as JCB unveil 21 new products, including tracked excavators, mini-excavators, telescopic handlers and skid-steer loaders, at the Conexpo construction equipment show in Las Vegas, USA, bringing their total machine line-up to 290 machines.
JCB managing director and CEO John Patterson said: ‘Our business has doubled in four years, with sales increasing from 36,000 machines in 2004 to 72,000 last year. This is an outstanding achievement and testament to the hard work of the JCB workforce and dealers worldwide. This growth has been fuelled by the continuous development of new products and a £100 million investment to ensure we have the right manufacturing capacity in the right locations around the world.’
Emerging markets proved to be the main source of business growth during 2007. As well as in India, JCB enjoyed success with significant growth in other markets around the world including Bulgaria, Romania, Poland, Russia and South America.
However, the company says there are concerns that the sector will be affected by the credit crunch and the downturn in North America, where the market fell by 13% during 2007. European economies are expected to come under pressure as the combined impact of slowing exports to the US and tighter, higher cost credit takes effect.
Despite these concerns, JCB plan to forge ahead with their investment in global production facilities during 2008. The company is investing £30 million to double capacity at the backhoe loader production facility near Delhi, due for completion later this year. Tracked and wheeled excavator production in the UK is also set to expand significantly following a £40 million investment in a new Heavy Products factory, and the company is also about to open a new £7 million JCB Attachments factory in Uttoxeter, Staffordshire.
In addition, investments in customer service will continue in 2008 with the creation of additional service parts distribution capacity at the World Parts Centre, in Uttoxeter; a new warehouse in Moscow for the fast growing Russia and CIS markets; the construction of a new parts centre and training facility at JCB’s North American headquarters in Savannah; and the opening of a new service parts warehouse and service training facility in Pune, India.
JCB group chief operating officer Matthew Taylor commented: ‘The industry has been strong during 2007, but our growth has not been totally dependent on market growth – we have grown faster than the market. But there is nervousness and uncertainty for 2008
‘North America continues to be weak and we don’t see any improvements this year, which in turn will put pressure on European economies. But infrastructure developments seem to be strong in most markets and growth in emerging markets will continue.
‘Overall, we hope to be able to grow the business in 2008 by investing in new products, new facilities and in the ongoing strengthening of the JCB network and team around the world.’
