Construction equipment (Russian market)

Main Article: Construction Machinery (Global Market)

Construction equipment leasing

Main article: Leasing (Russian market)

2023

Imports of tower cranes to Russia soared by 78% over the year, to 515 units

In 2023, 515 tower cranes were imported to Russia. For comparison, a year earlier, 290 such cars were brought to the country. The growth was about 78%, according to a study by BusinesStat, the results of which were published in mid-October 2024.

The report said that imports of tower cranes to Russia are growing steadily. The figure was estimated to be 141 units in 2019. A year later, imports increased by 11.3% to 157. In 2021, an increase was recorded at 40.1% with a final result of 220 units. In 2022, an increase of another 31.8% is shown. In general, in 2019-2023, imports of tower cranes to Russia increased by about 3.7 times.

The main foreign supplier of tower cranes to Russia is China. In 2019-2022, the share of the PRC in all-Russian imports averaged 72.6%, and in 2023 it increased to 89.5% (461 units). The equipment of Chinese companies is in increasing demand among Russian buyers. Prices for new Chinese cranes are often comparable to the price of European machines that have been in operation for several years. In particular, Dahan, Harbin Dongjian, Zoomlion, Xuzhou, etc. equipment is imported from the PRC.

In 2023, 32 tower cranes from Belarus (6.2% of Russian imports) were delivered to Russia, 17 from Turkey (a share of 3.3% of the total number of supplies). Two cars each fell on Britain and South Korea. Another crane arrived from Kazakhstan.

The increase in imports occurred against the background of the fact that Russian manufacturers cannot fully meet the needs of the domestic market both in terms of the number and assortment of manufactured equipment. Significant players in the domestic industry are named LLC "Crane Technologies" and LLC PO "Syktyvkar Metalworking Plant."^[1]

17.5% reduction in excavator production to 1370 pieces

In 2023, 1,370 excavators were produced in Russia. This is 17.5% less than the previous year, when 1,660 such machines were produced in the country. The sharp drop is due to the formed geopolitical situation, as stated in the BusinesStat report, published on May 16, 2024.

It is noted that the production of excavators in the Russian Federation grew in 2020-2021. In particular, in 2020, 2845 units of equipment were manufactured, and the increase compared to the previous year was 4.1%. In 2021, production increased by another 21.2% - to 3447 units. However, then there was a decrease: for example, in 2022, the volume of output collapsed by 51.8%.

BusinesStat notes that in the spring of 2022, several large international corporations that own production sites in the Russian Federation announced the suspension or reduction of equipment production in Russia at once. This decision was made by Hitachi Construction Machinery (plant in the Tver region), Komatsu (plant in the Yaroslavl region) and Caterpillar (plant in the Leningrad region). In addition, Hitachi announced the termination of the export of excavators from Japan to Russia "until further notice" due to the potential risks associated with the business.

At the same time, other Russian enterprises faced problems caused by the cessation of supplies of foreign components. As a result, some plants were forced to significantly reduce production volumes. Against this background, the production of excavators in Russia in 2022-2023 fell by more than 2 thousand units. At the same time, the share of Russian enterprises in the domestic market decreased from 20% to 5%, which is due to a significant increase in the supply of road construction equipment from China.

The problems of downtime of large production sites owned by international corporations began to be solved in the second half of 2023. Thus, it was decided to jointly produce tracked hydraulic excavators between the Kranex MG and Komatsu at the Komatsu Menufekchuring Rus LLC plant. And the company "PSK-new solutions" acquired the Russian assets of Caterpillar.^[2]

Growth in sales of road construction and special equipment by 30% to 51,502 units

In 2023, sales of road construction and special equipment in Russia reached 51,502 units. This is approximately 30% more than in the previous year, when shipments were estimated at 39,565 units. Such figures are given in the report of the Association of European Businesses (AEB), published on March 19, 2024.

The Association has changed its approach to assessing the market volume: aggregated indicators include not only statistics of manufacturers included in the AEB profile committee, but also data on the import of equipment from China and Belarus and information from domestic manufacturers.

Sales of road construction and special equipment in Russia reached 51,502 units

The study says that growth factors in 2023 were an increase in demand in construction, an increase in the implementation of infrastructure projects, the rise of the Russian industry in metallurgy and mining industries. The positive dynamics is also due to the increase in the production of domestic road construction equipment, the restart of a number of enterprises after the restructuring of supply chains and the establishment of the supply of components.

According to estimates, in 2023 sales of excavators-loaders in Russia increased by 122%, to 9879 units; tracked excavators - by 21%, up to 13,765 units; loaders with an on-board turn - by 116%, up to 6418 pieces; wheel loaders - by 1%, up to 13,081 units; wheeled excavators - by 73%, up to 2452 pieces; self-propelled graders - by 1%, up to 1718 units. At the same time, a decrease in the supply of tracked tractors by 10% was recorded - up to 3200 units and dump trucks with a rigid frame by 9% - up to 989 units.

According to the estimates of the Rosspetsmash association, in 2023 the production of domestic road construction equipment in monetary terms reached 90 billion rubles. This is 19% more than the previous year. Equipment worth 84 billion rubles was shipped to the domestic market in 2023.^[3]

Growth in sales of road construction equipment by 15% to 84 billion rubles

Sales of road construction equipment (DST) in Russia in 2023 soared by 50% compared to 2022 and amounted to 80 thousand units. Such Gazprombank Leasing brought in January 2024.

According to analysts at Rosspetsmash, in 2023, Russian road construction equipment was sold in the amount of 84 billion rubles, which is 15% higher than a year ago, and the production of such equipment increased by 19% (to 90 billion rubles).

The association also noted that in 2023 the volume of special equipment imported into Russia increased. According to the results of 12 months, the indicator increased by 58% and exceeded the mark of 440 billion rubles in monetary terms. As a result of "aggressive imports," as explained in Rosspetsmash, "a number of key segments of the domestic DST showed negative dynamics."

According to Alexander Ankushin, head of the department for work with medium-sized corporate business of Alfa-Leasing Group of Companies, the main reasons for the increase in sales of Russian road construction equipment in 2023 can be called an increase in the volume of road construction, since over the past 10 years it has received great attention from the Russian government. A legislative framework has been developed and effective mechanisms for managing transport infrastructure have been improved, he said. Ankushin added that the departure from the domestic market of foreign suppliers of special equipment has become a driver for the development of its own production.

According to Gazprombank Leasing, in 2023, the equipment of the Chinese brands LGCE, LiuGong, XCMG, Lonking, Sany, Zoomlion, Lovol and Shantui enjoyed the greatest demand on the Russian DST market. At the same time, mainly medium wheeled loaders, excavators-loaders, medium hydraulic excavators and mini-loaders with an onboard turn are imported into the territory of the Russian Federation, the company noted.^[4]

2022

The growth of the construction equipment market doubled in 4 years - 46.5 thousand units

The volume of the Russian construction equipment market (car cranes, concrete mixers, car graders, tower cranes, bulldozers, loaders and excavators) in 2022 reached 46.5 thousand units, which is 17.5% more than a year earlier. Compared to 2018, sales of such a transponder doubled. This is evidenced by the data of the analytical agency BusinesStat, released in December 2023.

Experts explain the growth of the construction equipment market in the Russian Federation by several factors:

• stimulating the state demand for housing (preferential mortgage programs);
• modernization of the road network;
• extension of the program of preferential leasing of road construction equipment, which allows you to receive a discount on an advance payment when buying Russian-made equipment for leasing in the amount of 10-15%.

According to the study, sales of construction equipment Russia in 2022 continued to grow. Despite the crisis changes, housing and industrial projects were not halted, and various construction equipment was required to complete them. It was also involved in the restoration of new regions of the country and the construction of defensive structures. In addition, due to the high dependence of the market on imports, the news of the upcoming departure of large international brands Volvo JCB Hitachi(,,,,,,) Komatsu Caterpillar CNH John Deere stimulated sales at the beginning of the year: consumers purchased equipment while it was still available.

The following companies were named the leaders of the Russian construction equipment market in 2022 (listed without specifying market shares):

• " Volvo Vostok";
• Petersburg Tractor Plant;
• "CKM Eurasia";
• "J.C. Rush";
• "IZ-Karteks named after P.G. Korobkov."^[5]

Sales of tower cranes in Russia in 4 years tripled to 300 units

In 2022, 300 tower cranes were sold in Russia, which is 22% more than a year earlier. In comparison with 2018, the volume of this market tripled - then the sale of this type of construction equipment was measured 100 pieces. This was announced in August 2023 by BusinesStat analysts.

They note that sales of tower cranes in the Russian Federation actively grew in 2018-2019 by 24-52% per year, This was due to the start of economic recovery and the realization of deferred demand after the crisis in 2014-2016. In 2020, the growth rate of tower crane sales in the Russian market slowed down to 8%, what was the result of the COVID-19 coronavirus pandemic and related restrictive measures, and in 2021, sales of tower cranes in Russia increased immediately by 51% and amounted to 247 units. The main growth drivers were the revival in the housing sector thanks to the implementation of the Preferential Mortgage program, as well as the extension of the preferential leasing program for road construction equipment.

In 2022, the market volume grew despite the unstable economic situation. The rise was due to several factors, among which:

• the total need for construction equipment, since despite the crisis changes, housing and industrial construction projects were not stopped.
• instability of the ruble exchange rate, against which market participants feared a significant increase in the cost of tower cranes and tried to buy equipment until prices increased.
• fears of sanctions and a possible shortage of imported tower cranes on the Russian market.

Russian-made tower cranes are mainly supplied to the CIS countries, whose economies are closely connected. The start of a special operation in Ukraine hit the solvency of most customers of Russian manufacturers. In addition, the decrease in the number of cars produced in Russia also negatively affected the export volumes.^[6]

Decrease in sales of road construction equipment to 13,677 units

In 2022, 13,677 units of road construction equipment (DST) and special equipment were sold in Russia, which is about a third less than a year earlier (20,508 units). This is evidenced by the data of the Association of European Businesses (AEB), published on February 14, 2023.

As Vedomosti writes with reference to the materials of the AEB, the statistics of the association include machines of importers and Russian manufacturers (for example, Kranex, PTZ, Chetra), which together account for about 80% of the Russian market for DST and special equipment. According to the study, in 2022, sales of all types of equipment decreased, with the exception of wheeled excavators, whose sales rose by 9% to 1,039 cars.

In 2022, sales of tracked excavators in the Russian Federation decreased by 16% (to 5318 units), tracked tractors - by 23% (to 1307 units), wheeled loaders - by 22% (to 1223 units), excavators-loaders - almost 2.7 times (to 1907 units). The technique of other nomenclatures with more modest sales volume in absolute figures also showed negative dynamics.

The decline in the market of DST and special equipment in Russia occurred, according to the AEB, for the first time since 2016. Then the reasons for the decline were associated with the introduction of a utilization fee, expensive loans and the devaluation of the ruble, the association explained in 2017. The decline in 2016 was only 7% compared to the previous year. Then in this segment there was a sharp increase in sales - immediately by 49% in 2017 and by 31% - in 2018. At the end of 2019, they increased by 12%, in 2020 - by 0.3% and in 2021 - by 47%.

Due to the military special operation of the Russian Federation in Ukraine, the supply of most of the range of special equipment fell under the sanctions of the EU and Japan. As a result, in 2022, in addition to the supply of domestic players, the market was replenished only due to Chinese imports, Kommersant notes. ^[7]

Sales of Russian road construction equipment increased by 35%, to 75.6 billion rubles

The production of Russian road construction equipment (DST) in 2022 reached 75.6 billion rubles, which is 35% more than a year earlier. Such data in January 2023 were brought to the Rosspetsmash association, which unites companies that produce about 80% of DST in the Russian Federation.

Shipments of DST in 2022 to consumers increased by 33% compared to the indicator of one year ago and amounted to 73.4 billion rubles. In quantitative terms, shipments of excavators in 2022 compared to 2021 increased 2.1 times, front loaders - by 42%, cranes-manipulators - by 18%, auto graders - by 12%, mini loaders - by 6%, tracked bulldozers - by 6%.

During the same period of shipment of excavators-loaders decreased by 60%, rollers - by 21%, telescopic loaders - by 19%, pipe-laying cranes - by 12%, truck cranes - by 0.3%.

As noted in the study, in 2022, foreign companies, unlike domestic manufacturers, did not face problems related to the cessation of supply of components, the search for new partners and the restructuring of supply chains, having received the main competitive advantage.

Russian factories report aggressive imports of road construction equipment. It is not uncommon for such machines and equipment to be sold at or below cost, experts say.

The Rosspetsmash association believes that 2022 clearly demonstrated all the risks associated with the use of foreign equipment. Among them are the absence of imported spare parts and components, the dependence of technologies used in construction on foreign machines, a decrease in the quality of work carried out during the operation of imported equipment with technically simplified functionality, and an increase in the supply period of machines.^[8]

2021: Growth in the production of road construction equipment in the Russian Federation by 28%, to 56.1 billion rubles

In 2021 Russia , road construction equipment (DST) was produced in the amount of 56.1 billion, rubles which is 28% more than a year earlier. Its deliveries to the Russian market reached 55.3 billion rubles, an increase of 29% compared to a year ago and setting a new record. Such data in January 2022 were published Rosspetsmash in (combines data from 80% of domestic producers of DST).

If you look in pieces, sales of pipe-laying cranes (2021 times), mini-loaders (on 3.8), auto graders (on 57%), tracked bulldozers (on 22%), truck cranes (on 16.6%), front loaders (on 13%) increased most in Russia by the end of 10%.

There is also an increase in sales of telescopic loaders, but there is a small base here, since their production was launched only in 2021. And they sold them in the amount of 96 pieces.

According to analysts, by the end of 2021, the depreciation of the existing fleet of cars averages about 30% in Russia. This is a technique with a service life of ten years or more.

Total demand in 2021 grew by about 50%, Anton Volkov, head of the construction equipment business development group Hitachi Construction Machinery Eurasia, told Kommersant. The dynamics of sales of machinery involved in the mining industry was higher than in the construction sector. This is primarily due to the unprecedented sharp rise in coal prices, he said.

In addition, the state continues to invest in the construction of roads and the implementation of infrastructure projects, including BKD (federal project "Safe and High-Quality Roads"), M12, reconstruction of ports, adds Mikhail Maklakov, sales director of construction equipment at John Deere. This also affects the growth of the construction equipment industry, he stressed in an interview with the newspaper.^[9]

2020: Increase in imports of road construction equipment in Q3 to 224%

1) The asphalt laying segment showed a significant increase in comparison with the third quarter of 2019: the number of imported equipment - 136 pcs. (+ 223.81%), the total customs cost of these machines - $25 803,459 (+ 539.56%). More than 80% of the equipment (namely 82.35%) was imported from Germany, and Japan (8.09%) and China (5.88%) also entered the top 3 countries.

2) The volume of supplies of asphalt rollers is 193 units (+ 19.14%) in the amount of $8,555,212 (+ 47.01%). Almost half of the equipment came from Germany (share - 47.67%, supplies were also made from Japan (18.13%), China (16.06%).

3) Dirt rollers were imported in the amount of 177 units, which is 29.2% more than in the same period in 2019. The customs cost of the equipment was $10,202,685 (+ 27.36%). At the same time, cars were mainly imported from China (the share of this country is 63.84%), the Czech Republic (16.95%) and Germany (13.56%).

2019

At the end of 2019, the growth of the special equipment market will be about 10-11%, but the pre-crisis level of 2013 will reach, perhaps not earlier than in 2020-2021. Dynamics in 2019 is declining, and in 2020 we expect to see the segment grow no more than 3-5%^[10].

After a period of prolonged fall in demand for special equipment (2014-2016) in 2017, the market began to grow. The deterioration of old equipment in many companies has reached a critical level, and the process of updating the fleet has begun, which continued in 2018 and 2019. Basically, leasing and credit schemes are used when buying. The volume of leasing transactions for the purchase of special equipment increased by almost 4 times during 2019.

The stabilization of the special equipment market was influenced by state support, preferential lending, subsidies for research and design work to Russian manufacturers. Subsidies to companies paying the recycling fee and leasing agreements were widely used. Sales of excavators-loaders and tracked excavators for the period January-November 2019 showed an increase of more than 20% compared to the same period last year, rotary loaders and tracked excavators grew at a less impressive rate: about 10%. Manipulator cranes and auto cranes also show double-digit growth. The greatest demand is for equipment used in road traffic. construction Speaking of manufacturers, the impressive dynamics of sales To Moscow in the region JCB was demonstrated - the company is ahead of the market averages.

The authorities support Russian manufacturers. So, for imported special equipment, an increased utilization fee has been established, which has already caused a decrease in sales of imported wheeled loaders, tractors, graders and dump trucks. The likelihood of further increase in collection remains. In addition, in March 2019, the president limited the possibility of purchasing foreign equipment for leasing for municipalities and regions in the presence of Russian analogues. The legislative initiative was aimed at protecting the domestic market and ensuring the utilization of production capacities of domestic enterprises. And in the fall of 2019, Rosspetsmash began to promote an initiative to restrict the admission of imported special equipment and equipment, analogues of which are produced in Russia, to participate not only in public procurement, but also in tenders of companies with state participation.

Nevertheless, the reliability and performance of many types of foreign equipment remains unsurpassed. The use of high-quality imported special equipment in construction allows you to meet the deadlines for the work, minimizes the likelihood of equipment failure and its downtime due to repairs. I want to emphasize that only financial leasing is limited, so foreign equipment can be leased to municipal contracts.

2016

Sales in the Russian construction equipment market in 2016 fell by 7%. Such data was published by the committee of manufacturers of road construction and special equipment of the Association of European Business. The decline has been going on for the fourth year in a row, the committee said.

Experts consider tax policy to be one of the reasons for maintaining a negative trend. "The

drop in sales was largely affected by the introduction of the recycling levy in February 2016. Already expensive cars (including due to the devaluation of the ruble) were burdened with an additional fee from 450 thousand to 6 million rubles. This led to the fact that the supply of some types of equipment stopped completely, "said the chairman of the committee Andrei Komov.

The demand for excavators "sank" most significantly. Sales of tracked vehicles decreased by 14% to 1920 units, wheeled - by 25% to 237 units. Interestingly, the number of dump trucks sold has significantly increased. Sales of articulated equipment of this type increased by 18% to 109 units, dump trucks with a rigid frame - immediately by 60% to 120 units.

According to the results of the first half of the year, the volume of sales of new construction and special equipment in Russia fell by 10%. This was calculated by experts of the committee of manufacturers of road construction and special equipment of the Association of European Business (AEB), RIA Novosti writes. "This is the most protracted fall over the past 10 years," said Andrei Komov, head of the committee and CEO of Volvo CE Russia.

According to the AEB, sales of excavators fell the most. Including tracked - by 22%, wheeled - by 26%. The volume of sales of only self-propelled graders, articulated dump trucks and dump trucks with a rigid frame increased (by 8%, 9% and 100%, respectively). In total, the association's database includes data on sales of companies that occupy 80% of the construction and special equipment market.

The AEB itself refused any forecasts about the market dynamics in the industry, citing the direct dependence of certain trends on the general economic situation in the country. A number of experts give cautious predictions about the future prospects. Today, oil prices have a serious impact on the market in this area, Ishii Sonosuke, head of the business division Russia of Hitachi Construction Machinery, previously noted in a commentary to Rossiyskaya Gazeta. If they are fixed at the level of 45-50 dollars and the stabilization of the ruble, you can look optimistically at the further development of the situation and expect a gradual recovery of the industry, the expert noted.

Notes