JCB cautions over challenging UK conditions despite profit rise

Your support helps us to tell the story

Support Now

Find out moreClose

As your White House correspondent, I ask the tough questions and seek the answers that matter.

Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.

Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election

Andrew Feinberg

White House Correspondent

JCB has posted a jump in profits for the past year but warned over “challenging” conditions in the UK construction market.

The Staffordshire-based firm, well known for its yellow excavators and machinery, said its outlook is “less positive” for 2024 as the slowdown in Europe has impacted demand for machinery.

Bosses at the firm said it has been knocked by weaker housebuilding after a surge in interest rates over the past two years impacted the mortgage market.

JCB chief executive officer Graeme Macdonald said the group saw sales grow last year despite the overall global machinery market shrinking.

The company reported that turnover increased by 14% to £6.5 billion for 2023, with machinery sales hitting 123,228.

Meanwhile, pre-tax profits lifted by 44% to £805.8 million for the year.

Mr Macdonald added: “North America remains the world’s largest market for construction equipment and JCB’s sales there grew strongly during 2023.

“JCB’s business in India also performed well in a growing market and while the UK market remained largely flat in 2023, JCB increased its share of the market.

“The full-year market outlook for 2024 is less positive, with challenging conditions in the UK and Europe, particularly in Germany where economic activity has declined sharply during 2024.

“In the UK, housebuilding activity has contracted, which is having a negative impact on machine utilisation.”

JCB chairman Anthony Bamford said: “Our family company, JCB, continues to invest both in new production capacity and in product innovation.

“Earlier this year, we broke ground on our new factory in San Antonio, Texas.

“The company’s ongoing investment in innovative new machines, such as the recently launched JCB Pothole Pro designed to tackle the global scourge of potholes, together with our continued focus on the development of hydrogen combustion engines for our equipment in the future, puts JCB in a strong position for further long-term growth.”