Macroeconomic and sector-specific conditions

Macroeconomic conditions

According to the latest report by the World Bank, the global economy performed much better in the first half of 2021 than in the same period of 2020. The pace of recovery varied between regions and between sectors depending on the particular course of the pandemic and the extent of economic and fiscal stimulus measures. In the eurozone, the sluggish and patchy rollout of vaccines and the restrictions on travel that were still in effect in some places slowed the pace of recovery. The US economy recovered more quickly than other developed economies because of larger government stimulus packages. Economic growth continued to pick up again in China too, driven by public investment, exports, and rising domestic demand.

Sectoral conditions

Sales markets

The global market for forklift trucks and warehouse trucks saw strong demand in the six months under review. The number of new truck orders jumped by 72.3 percent to 1,218 thousand units.

All regions delivered strong year-on-year growth. In the APAC region (Asia-Pacific), the number of new trucks ordered grew by 65.0 percent compared with the prior-year period. This was predominantly attributable to China (up by 71.6 percent), where a sharp increase in warehouse truck orders contributed to the uptrend. The EMEA region (western Europe, eastern Europe, Middle East, and Africa) also recorded a strong rise of 73.9 percent. The number of orders also surged in the Americas region (North, Central, and South America), by 89.2 percent, primarily on the back of market growth in North America.

New orders for IC trucks were up significantly year on year, by 56.1 percent, mainly thanks to the increase in orders in China. The market for electric forklift trucks (up by 73.7 percent) and warehouse trucks (up by 84.6 percent) also recovered strongly, generating significant year-on-year growth. The increase in warehouse truck orders was predominantly attributable to strong demand for entry-level trucks in China, which have limited impact on the overall market volume in terms of revenue.

In the KION Group’s view, the coronavirus pandemic continued to boost the growth of the market for supply chain solutions in the second quarter. There was no letup in customers’ investment in warehouse automation and robotics solutions. The KION Group believes that this growth is being driven primarily by ongoing investment by companies in the e-commerce, food, and general merchandise sectors.

Procurement markets

Prices for the commodities used by the KION Group rose during the first half of 2021, in some cases significantly. The price of steel surged in the first quarter and then settled at a level considerably above the average price for 2020. Copper prices maintained their steep upward trend in the first half of 2021 too. The increase in commodity prices could also be seen in the price of oil, which has already risen by more than 50 percent in the year to date due to continued growth in the global economy and a slowdown in production by the OPEC states. The price of rubber was also much higher than the average price for 2020.