Overview Of Volvo’s Annual Report: 3 Facts Businesses Should Know

  • Editorial Team
  • News
  • 18 March 2024

Recently one of the largest heavy equipment manufacturing companies Volvo released its 2023 annual report. It exclaimed a total of 19% total sales of the company.

As per the publication, we have compiled the three main facts that we can learn from the globe’s sixth-biggest OEM and how fleet owners can use them for making better equipment management plans and increasing revenue in the coming year;

Shift Towards Electric Heavy-Moving Machinery

Volvo is shifting its focus from composing mundane heavy-moving machinery to electric-supported equipment.

They want to give clients a sustainable option for acting day-to-day heavy lifting operations that price hazardous emissions.

Volvo is further aiming to produce heavy equipment consuming fuel-cell and electric-battery solutions while investing in combustion engines that run on low-carbon levels.

The transition is pretty evident in the number of heavy equipment produced on this phenomenon last year. A total of 60,064 units were produced in 2023. Out of which 45,494 are heavy moving machinery and the rest lie in the compact equipment sector.

Additionally, Volvo has plans to build further manufacturing units in Mariestad Sweden to cater to the demand for commercial and heavy-duty equipment. The company has also invested in its South Korean excavator plant which will run by June 2024.

High Probability Of Equipment Sales

Although Volvo acknowledges the fact that in the short term equipment sales can suffer due to high interest rates or low financial growth. But in the long run, the company sees a bright future further heavy-duty equipment’s ales.

However, the North American market has seen Volvo heavy-moving machinery due to the increased scope of fine commercial and residential projects.

However, the fourth quarter of last year has softened the market because of the high equipment taxes and interest rates.

The continued demand for heavy-moving machinery further exclaims that countries are shifting toward renewing old infrastructure.

The main reason behind this development shift is the growing population which is increasing the accommodation and professional needs.

Plans To Boost Services

With a flat 1% increase in machinery sales, Volvo is trying to expand its service sales to beat its previous expansion of 4% service sales.

Moreover, Volvo has plans to develop and expand its service sector for the years to come. If you want to get your hands on Volvo heavy equipment but find it too expensive to buy a brand-new one, don’t worry we have a solution. At MY-Equipment.com you can search and find a list of used construction equipment from Volvo and many other renowned equipment manufacturers at reasonable rates.

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The company aims to have a grip on services that can boost its market shares emphasizing an increment of spare parts, financing insurance, workshop hours as well as uptime services.

Among the connected heavy moving machinery, Volvo has sold 700,000 heavy equipment with 2.1 million trucks included within the last decade. With such a vast selling portfolio, Volvo desires to increase its manufacturing productivity and uptime to maximize customer advantages.

What’s Ahead?

Volvo plans to increase its manufacturing capacity to hit a wider market. It plans to strengthen its Equipment As A Service (EaaS) offering that prioritizes usage by giving users the advantage of ownership.

Through EaaS, the company is giving potential buyers the chance to invest more capital in their heavy-moving machinery. This will not only benefit end user’s needs but will simultaneously increase Volvo’s net revenue to sustain the volatile equipment market in the long run.

So if you are willing to upgrade your inventory, as the world’s sixth largest manufacturer Volvo can serve as a sustainable choice!

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