CSCEC retains title as world’s most valuable engineering and construction brand valued at US$27.4 billion
CSCEC (brand value down 10% to US$27.4 billion) remains the world’s most valuable engineering and construction brand, according to a new report from the world’s leading brand valuation consultancy, Brand Finance. While the Chinese construction giant is facing challenges from ongoing COVID-19 restrictions in China, much of the last two years has seen significant brand value growth for the brand.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The engineering and construction industry’s top 50 most valuable and strongest brands in the world are included in the annual Brand Finance Engineering & Construction 50 ranking.
The Chinese State Construction Engineering Company has significantly grown revenue and profit this year, correlated with continuing urban development and infrastructure construction across China. It operates a vertically integrated brand from development through to property management, and has built a globally valuable brand based upon that complete brand control. Domestically, CSCEC is a giant construction brand, and while it does face competition in some areas, it continues to dominate the super-high-rise market.
Beyond CSCEC, fellow Chinese brands CRCC (brand value up 24% to US$19.7 billion) and CRECG (brand value up 22% to US$18.2 billion) each grew brand value by almost a quarter each. In both cases, brand value has increased as a result of forecast increases in revenue, and also Brand Finance research which revealed significantly improved the reputation of the two brands.
Further down the rankings, fellow Chinese brands Power China (brand value up 10% to US$9.2 billion), CNBM (brand value up 17% to US$8.3 billion), CCCC (brand value up 44% to US$7.6 billion) and MCC (brand value up 20% to US$7.6 billion) all grew significantly with the brands benefiting from significant and continuing investment in various national construction priorities.
While there are short-term and ongoing challenges from continuing COVID restrictions, most of the Chinese engineering and construction brands are continuing to grow. The brands benefit from close alignment with the nation’s political leadership and a vertically integrated business plan which gives the brand strong control over its destiny.
Richard Haigh, Managing Director at Brand Finance
John Deere is world’s strongest engineering brand with AAA rating
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
John Deere (brand value up 3% to US$8.1 billion) has retained its position as the world’s strongest brand in the engineering and construction ranking with a Brand Strength Index (BSI) score of 85.4 out of 100 and a corresponding brand rating of AAA. John Deere benefits from unusually strong brand affinity from some customers, and unusually amongst large engineering brands, even operates a popular consumer-facing clothing brand.
Sandvik enters top 50 ranking with 57% brand value growth to to be fastest growing brand
Swedish engineering brand Sandvik (brand value up 57% to US$2.6 billion) is this year’s fastest growing brand in the Engineering & Construction 50 report, and a new entrant to the rankings in 48th position. A significant factor in this fast brand value growth is the very high level of activity in the acquisition of other brands, including CNC Software, Cambrio, ICAM, GWS Tool Group, DWFritz Automation, Dimensional Control Systems, DSI Underground and signed agreement to acquire Deswik. Each of those brands have an opportunity to complement the brand value of the primary Sandvik brand as the company expands within the broader mining and engineering sector.
Further, research revealed that Sandvik achieved a significant improvement in its brand strength, with its brand strength index increasing by 9.7 points, from 69.6 (AA rating) to 79.3 (AA+ rating) and only narrowly missing out on a AAA- rating. This improved brand strength was correlated with improved promotional activity on both paid and social media channels, delivering increasing awareness of the brand’s activity to improve its levels of corporate and social responsibility.
Honeywell enters top 10 with 42% increase in brand value
Honeywell (brand value up 42% to US$9.0 billion) grew extremely quickly this year, leaping six places on the global engineering and construction ranking from 15th to 9th. Honeywell has recently completed multiple acquisitions, and the larger, combined, brand is successfully integrating the various operations into its primary brand.
In addition, Brand Finance research revealed a very large improvement in the reputation of Honeywell, with its brand strength index increasing by 8.4 points from 73.9 to 82.3. This improvement to brand strength is correlated with a new brand rating of AAA- (formerly AA) and improving to be the 4th strongest brand in the engineering and construction industry globally.