JCB enjoyed its best-ever year in 2007 with sales and global market share rising to all-time highs, the company said in a press conference at ConExpo in Las Vegas last week.
In 2007, JCB’s revenue increased to a record $4.5 billion, compared with $3.5 billion in 2006, an increase of about 28 percent. The company sold more than 72,000 machines in 2007. The Staffordshire, England-based manufacturer said its share of the world construction equipment market rose to 12 percent, compared with 10.4 percent in 2006.
In 2007, India surpassed the United Kingdom as JCB’s single largest market with sales of more than 17,000 machines, up from 10,800 units sold in 2006.
JCB officials said the company has retained its position as the world’s No. 1 backhoe manufacturer, producing one of every three machines sold globally. JCB also said it was the world’s leading manufacturer of telescopic handlers in 2007.
JCB introduced 21 new products, including tracked excavators, mini excavators, telescopic handlers and skid-steer loaders at ConExpo, bringing its total machine line-up to 290 models.
“Our business has doubled in four years, with sales increasing from 36,000 machines in 2004 to 72,000 last year,” said JCB managing director and CEO John Patterson. “This is an outstanding achievement and testament to the hard work of the JCB workforce and dealers worldwide. This growth has been fueled by the continuous development of new products and a $200 million investment to ensure we have the right manufacturing capacity in the right locations around the world.”
The primary source of growth during 2007 was emerging markets such as India, Bulgaria, Romania, Poland, Russia and South America.
Other JCB highlights included:
· An increase in global sales of JCB Vibromax equipment by 45 percent.
· JCB Groundcare sales increased by 60 percent;
· New products and ranges accounted for 40 percent of total JCB sales increase;
· Increase in the dealer network to 670 dealers and 1,500 locations worldwide;
· New Iberian Peninsula Parts Distribution Center opened in Madrid;
· New range of generator sets launched.
Despite concerns about the credit crunch and downturn in North America, and the pressure U.S. difficulties will put on European economies, JCB is continuing to invest in global production facilities. A $60 million investment to double capacity at the backhoe loader production facility near Delhi, India, is scheduled to be completed this year. Tracked and wheeled excavator production in the U.K. will expand following an $80 million investment in a new heavy products factory, and JCB is about to open a $14 million JCB Attachments factory in Staffordshire.
The company is also developing additional capacity at its World Parts Center in the U.K.; a new warehouse in Moscow for the fast-growing Russia and CIS markets; a Customer Support Center and training facility in JCB’s North American headquarters in Savannah, Ga., and a new service parts warehouse and training facility in Pune, India.
“There is nervousness and uncertainty for 2008, “ acknowledged Patterson. “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.”
At ConExpo, JCB once again presented its Dancing Diggers with an all-new show, involving three backhoe loaders and six telescopic handlers, along with a team of aerial acrobats. The show, entitled “Equilibrium,” was presented every hour at ConExpo.
