JCB hits £4 billion threshold, but issues word of warning

JCB set new records for turnover and machine sales in 2018, as global markets for construction equipment and agricultural machinery “remained strong”.

The UK-based company revealed that its sales turnover in 2018 rose by 22% to £4.1 billion. In 2017, it stood at £3.35 billion.

Machine sales increased to 96,246 units – up from 75,693 units in 2017.

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JCB CEO Graeme Macdonald said: “2018 was a very strong year for JCB, during which the global construction equipment market grew by 18% to an all-time high of one million machines.

Image source: Tim Scrivener

“We outpaced this growth by increasing our sales revenue by 22% last year, which was a very significant achievement.

However, this growth has now stalled, with many markets softening this year – particularly the Middle East, Turkey, Latin America and India.

JCB chairman Lord Bamford said: “The continued growth in global markets during 2018 has seen production reach new peaks. As we approach our 75th anniversary next year, the pace of innovation remains relentless.

“Recent product launches, especially our electric mini excavator, put the company in a strong position to tap into a growing demand for zero-emissions or ultra-low-emissions equipment in the construction industry.”

India remained JCB’s largest market in 2018 and this year marks the 40th anniversary of JCB India.

It comes as the company invests in a new £65 million factory in Gujarat, which is due to open in 2020.

The company is also investing £50 million in a new factory to manufacture cabs for its machines in Uttoxeter, Staffordshire (England), which will open later this year.

It’s worth noting that JCB has 22 factories around the world, including 11 in the UK.