Chinese construction giant China State Construction Engineering Corporation (CSCEC) brand value was up by 16% to USD31.9 billion in 2022 retains its position as the most valuable brand in the global Engineering & Construction sector, according to a new analysis by the world’s leading brand valuation consultancy, Brand Finance.
As one of the largest construction companies in the world by revenue, the China State Construction Engineering Corporation saw another year of brand value growth post-pandemic.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 50 most valuable and strongest Engineering & Construction brands are included in the annual Brand Finance Engineering & Construction 50 2023 ranking.
CSCEC’s brand value increase is a direct result of improved business performance, as well as an improved Brand Strength Index (BSI) score of 76.4 out of 100 and corresponding AA+ rating. Annual performance indicators saw significant year-on-year growth, including revenue and new construction contracts. In 2022, CSCEC delivered 28 venues and auxiliary projects for the Beijing Winter Olympics. The brand’s ability to deliver high quality projects, and operation and maintenance plans, has positively contributed to CSCEC’s brand recognition.
“Generally, Chinese Engineering & Construction brands continue to grow. These brands, however, are now faced with new expectations of sustainability,” said Richard Haigh, managing director, Brand Finance. “Now that the Chinese government has announced its 5-year plan for the Engineering & Construction industry, these brands will need to adapt and integrate sustainability into their core strategies to maintain brand value and strength.”
On the ESG front, the Chinese government announced a five-year plan for a smarter, greener, and safer Engineering & Construction sector in a bid to reducing carbon emissions, adopting digital technologies and improving the safety and quality of buildings. In response, Engineering & Construction brands have adopted various measures in line with an increasing focus on sustainability. CNBM (brand value up 7% to USD8.9 billion), the largest cement and concrete brand in China, implemented its Dual Carbon Goals aimed at advancing green development and low-carbon technology, as well as leading green and intelligent transformation of the cement industry.
US-based Ferguson (brand value up 38% to USD5.3 billion) was the fastest-growing brand of the 2023 ranking. A key driver of Ferguson’s five rank hike to 26th is the acquisition of HVAC distributor, Airefco. The acquisition has accelerated the brand’s geographic expansion and a larger multi-brand footprint, improving Ferguson’s brand recognition. Ferguson has also benefited from investments made into 17 acquisitions across the 2021-2022 period, generating additional revenues of approximately USD750 million.
In terms of ESG-related initiatives, in 2022 Ferguson launched its national partnership with Rebuilding Together, an organisation centred around repairing the homes of people in need. The partnership saw Ferguson strengthen its relationships with external communities and stakeholders. Of this year’s four fastest-growing brands, three of them are American. Caterpillar (brand value USD11.2 billion) increased 36.4%, with John Deere (brand value USD10.8 billion) up 33.1%.
Six new entrants joined the Brand Finance Engineering & Construction 50 ranking this year. China Energy Engineering Corporation (CEEC) is the most valuable newcomer, entering the ranking with a brand value of USD9.1 billion.
CEEC’s impressive inaugural brand value is a consequence of its late 2021 merger with Chinese Gezhouba Group Corporation (CGGC). The merger saw CEEC, a Hong Kong listed company, absorb CGGC, a mainland China listed company. This merger is the first of its kind, as well as the largest seen in recent years in terms of value. As the surviving company, CEEC has gained all assets and contracts and combined brand value.
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 38 countries and across 31 sectors.
John Deere, meanwhile has secured its title of world’s strongest Engineering & Construction brand for another year, maintaining AAA rating.
John Deere (brand value USD10.8 billion) holds its position as global Engineering & Construction’s strongest brand, with a Brand Strength Index (BSI) score of 86 out of 100, which corresponds to a AAA rating. Brand Finance’s ranking also saw John Deere improve three ranks following a 33% increase in brand value (previously USD8.1 billion), entering the top 10 of the world’s most valuable Engineering & Construction brands.
Worldwide net sales and revenues increased by 19% as demand for farm and construction equipment remains strong. John Deere also benefits from its continued innovation, announcing in 2022 a fully autonomous tractor. Ready to be produced on a large scale, the brand’s development of its automated features has further solidified brand recognition, as well as its strategy for smart industrials.
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.
CREC (brand value USD19.8 billion) is keenly aware of the importance of protecting the natural environment. With a Sustainability Perceptions Score of 5.77 out of 10, CREC is perceived by consumers as the most sustainable Engineering & Construction brand. Having implemented an ESG management system since 2008, CREC is thought to be continuously considering the environment. Each of CREC’s projects undergo detailed assessments for potential environmental impacts, producing detailed programs for environmental protection. This includes the brand’s cautious handling of waste, minimising air and water pollution, and protecting biodiversity. As the ranking’s third most valuable brand, CREC is also ranked second in terms of Sustainability Perceptions Value at USD723 million.
CSCEC, Engineering & Construction’s most valuable brand at USD31.9 billion, also has the highest Sustainability Perceptions Score of USD948 million. In line with the Chinese government’s new standards towards a sustainable Engineering & Construction industry, CSCEC has actively participated in environmental and ecological restoration projects, as well as contributing towards cleaner energy and low-carbon office practices.
The brand’s perceived support of the government-proposed initiative will positively contribute to the CSCEC’s overall value, as the brand benefits from its alignment with China’s political leadership. The brand’s position at the top of the SPV table is not an assessment of its overall sustainability performance, but rather indicates how much brand value it has tied up in sustainability perceptions. The brand’s Sustainability Perception Score was also 4.69 out of 10.
The post CSCEC rated as world’s ‘most valuable’ construction brand appeared first on Middle East Construction News.
Source: MEConstructionNews
