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China’s CSCEC Overtakes General Electric as World’s Most Valuable Engineering & Construction Brand

19 May 2020
This article is more than 4 years old.
  • Engineering & construction sector moderately impacted by COVID-19 pandemic, brands could lose up to 10% of brand value, equating to over US$30 billion loss
  • China’s CSCEC overtakes GE to become world’s most valuable engineering & construction brand, brand value US$24.8 billion
  • China’s Conch is fastest growing brand in Brand Finance Engineering & Construction 50 2020 ranking, up 39%
  • Siemens claims title of world’s strongest engineering & construction brand, Brand Strength Index (BSI) score 85.2 out of 100

View the full Brand Finance Engineering & Construction 50 2020 report here

Top 50 E&C brands could lose US$30bn from COVID-19

The world’s top 50 most valuable engineering & construction brands could lose over US$30 billion worth of brand value as a result of the COVID-19 pandemic, according to the latest Brand Finance Engineering & Construction 50 2020 report. Brand Finance’s analysis shows that the engineering & construction sector is a moderately impacted industry globally and could face a potential 10% loss in brand value.

As with the majority of sectors globally, COVID-19 is undoubtedly going to wreak havoc on the engineering & construction sector in the coming year, through production disruption, broken supply chains and future investment uncertainty.

Looking beyond the engineering & construction sector, the value of the 500 most valuable brands in the world, ranked in the Brand Finance Global 500 2020 league table, could fall by an estimated US$1 trillion as a result of the Coronavirus outbreak.

Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on 1st January 2020. The likely impact on brand value was estimated for each sector. The industries have been classified into three categories – limited impact (minimal brand value loss or potential brand value growth), moderate impact (up to 10% brand value loss), and heavy impact (up to 20% brand value loss) – based on the level of brand value loss observed for each sector in the first quarter of 2020.

CSCEC leads way for Chinese brands

China State Construction Engineering Corporation (CSCEC) has overtaken General Electric (down 14% to US$24.2 billion) to become the world’s most valuable engineering & construction brand, despite recording a 3% drop in brand value to US$24.8 billion.

CSCEC leads the way for a further 10 Chinese brands in the ranking, with a combined brand value of US$89.4 billion, closing the gap behind US brands, which currently dominate the ranking, with 19 featuring with a combined brand value of US$95.1 billion.

Entering the ranking for the first time, in 10th position, is Power China (brand value US$7.7 billion). As one of China’s biggest multinationals, Power China has established itself as a leading enterprise in the hydropower industry both on home soil and internationally.

Leading Chinese cement producer, Conch, is this year’s fastest growing engineering & construction brand, recording an impressive 39% brand value growth to US$3.9 billion. The brand has continued to commission several global projects and celebrated solid revenue growth, which it has attributed to strong sales performances.

Richard Haigh, Managing Director, Brand Finance, commented:

“President Xi Jinping’s Belt and Road Initiative has successfully propelled Chinese engineering and construction brands onto the global stage and has been the main impetus for their solid performances in the Brand Finance Engineering & Construction ranking. These brands’ resilience and strength have been put to the ultimate test, however, as COVID-19 engulfs not only the Chinese but global economy. With life making a slow return to normal across the nation, these brands will hope to bounce back, minimising risk to their brand values in the coming year.”

John Deere bucks trend and enters top 10

Bucking the negative trend in the top 10 is Illinois-headquartered John Deere, recording a 31% brand value increase to US$8.3 billion and simultaneously jumping 6 spots in the ranking from 14th to 8th.

Priding itself as a leader in the delivery of smarter, more efficient and sustainable solutions, the brand continues to strive towards innovative product development. Despite John Deere suffering from the repercussions of the US-China trade war and from the US farm industry slowdown, the brand celebrated record performances in its construction and forestry businesses, marking a record year for sales and operating profit.

Siemens is sector’s strongest

In addition to measuring overall brand value, Brand Finance determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. According to these criteria, Siemens (down 7% to US$20.1 billion) is the world’s strongest engineering & construction brand with a Brand Strength Index (BSI) score of 85.2 out of 100 and a corresponding AAA brand strength rating.

The brand has committed to its Vision 2020+ strategy, focusing on growth in the fields of electrification, automation and digitalisation, and invested nearly €6 billion in R&D in 2019 alone. The brand has scored particularly well on the environment and governance score, a testament to the brand’s environmental protection drive. CEO Joe Kaeser has announced that he hopes to bring forward its current 2030 CO2 neutrality target – a reflection of Siemens’ success thus far.

This success as not come without its difficulties, however, demonstrated by the 7% drop in brand value to US$20.1 billion. Siemens has cited the slowing European and global economy, paired with the slump in the car market, as key contributing factors towards dented profits and forecast revenue.

View the full Brand Finance Engineering & Construction 50 2020 report here

Note to Editors

Every year, Brand Finance values 5,000 of the world’s biggest brands. The 50 most valuable engineering & construction brands are included in the Brand Finance Engineering & Construction 50 2020 report.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.

Additional insights, charts, and more information about the methodology, as well as definitions of key terms are available in the Brand Finance Engineering & Construction 50 2020 report.

Data compiled for the Brand Finance rankings and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.

Media Contacts

Penny Erricker
Communications Executive
Brand Finance

About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Definition of Brand

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.


Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.

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