JCB has risen to third place in the league table of world construction equipment manufacturers following a year that saw sales volumes and market share rise to all-time highs.
In 2006 the company manufactured a record 55,741 machines — an 85 percent increase over three years. This success generated a record turnover of $3.5 billion and gave JCB a l0.4 percent share of the world construction equipment market.
“In recent years our strategic vision has been threefold: to move JCB from being a strong European player to a global company with a global manufacturing presence,” said JCB Managing Director and Group CEO John Patterson. “In addition we have sought to grow the company by expanding our product range to serve the needs of a much wider customer base and strengthen our dealer network. Our goal over the past five years was also to achieve a worldwide market share of 10 percent, which would make us a strong global construction equipment manufacturer with much stronger brand recognition.”
JCB’s biggest single growth market in 2006 was India where volumes increased by more than 40 percent. In percentage terms, JCB’s largest growth market was Russia where volumes broke through the 1,000 machine barrier for the first time — a rise of 145 percent over 2005.
JCB also has seen growth in the traditionally strong and mature markets of the UK and Europe. In 2006 JCB grew its business in the UK by 9 percent. Other notable successes were in Germany and Spain, where JCB’s sales rose by 36 percent and 20 percent, respectively.
“2007 has also started very strongly. Our first quarter sales are up by around 30 percent [over] last year and our production is at a similar level of increase,” said JCB Chief Operating Officer Matthew Taylor. “Our record growth over the past three years has been driven by our commitment to innovation — in product, distribution, the way we develop and manufacture our machines, how we approach our market and how we run our business. We will continue to develop new products and new ideas.”
JCB The Americas
In 2007, JCB integrated its operations in South America, the United States and Canada under one umbrella — JCB The Americas.
“Canadian sales remain strong for JCB. We celebrate our 40th anniversary of business in Canada this year,” said JCB The Americas President Graeme Macdonald. “In Central and South America, business in our sectors of the construction industry remains buoyant so far this year.
“North America is proving a tough market at present with the decline in the housing market, but JCB has put aggressive plans in place to double sales in this key territory.”
Government and Defense Business Unit
JCB has set up a new Government and Defense Business Unit to build on its success in selling machines to the military market.
In 2005 JCB secured one of the largest orders in its history when it won a $175 million deal to supply the U.S. Government with High Mobility Engineer Excavators (HMEEs). Full scale production of the HMEE is now under way at JCB’s plant in Savannah, Ga., and the first delivery to the U.S. government is scheduled for July this year.
The HMEE fulfills a need from the military for rapid deployment, high mobility products. To further meet these requirements, JCB also has developed a range of other high mobility products from the High Mobility Fastrac Tractor to the High Mobility Rough Terrain Forklift and the High Mobility Utility Vehicle.
Since JCB acquired the German manufacturer of compaction equipment, Vibromax, in September 2005, the new company has made rapid progress. Global sales of JCB Vibromax ride-on machines have risen by 67 percent and more than $2 million have been invested in the Gatersleben factory near Leipzig, Germany, where production capacity has been doubled.
JCB Dieselmax Engine
Since production of the JCB Dieselmax engine began in November 2004 following a $160 million investment, JCB Power Systems has manufactured more than 50,000 JCB444 Dieselmax engines at Tier II emissions level.
JCB Power Systems is now producing 150 engines per day and supplying approximately 50 percent of JCB’s total engine needs. JCB also has begun production of its common rail Tier III engine — for use in JCB products and those of external customers — and they will be available in power ratings of 130 hp (97 kW), 145 hp (108 kW) and 161 hp (120 kW).
The highlight of the introduction of the JCB444 engine came in August 2006 when the JCB Dieselmax car, fitted with two high performance versions, set a new world record for a diesel powered car at 350.092 mph on the Bonneville Salt Flats in Utah.
JCB has 17 plants on four continents: 10 in the UK, three in India and others in the United States, China, Germany and Brazil and employs more than 8,000 people.
JCB celebrated its 60th anniversary in 2005. JCB is privately owned by the Bamford family and Chairman Anthony Bamford is the son of the company’s late founder, Joseph Cyril Bamford.