Due to factors such as macro-control of real estate and reduction of infrastructure construction, the Chinese construction machinery industry, which is accustomed to high growth, is experiencing a “bottomâ€. On the 3rd of the 2012 Construction Machinery Industry Investment and Development Forum held in Luotu Town, Lingang New City, Jiangyin, industry experts stated that the “high and low†Chinese construction machinery industry has experienced a decline in both costs and prices but has been competitive in the international market. The trend is stronger, and it is still expected to usher in a new round of growth with recent policy support.
In the past three years, benefiting from the opportunity of large-scale infrastructure construction in China, the construction machinery industry has grown at an alarming rate of around 50% per annum. However, since the beginning of last year, due to adjustments in the real estate industry and project construction slowdown, the “temperature†of the industry has plummeted. . Data from the China Construction Machinery Industry Association shows that in the first half of this year, nearly 20% of the industry as a whole has declined, and the overall cash flow pressure of the industry is high.
Due to low market demand, price promotions have become an industry trend. Suzi Meng, secretary-general of the China Construction Machinery Industry Association, said that with the recent acquisition of foreign companies by leading players such as Zoomlion and Sany Heavy Industry, China's construction machinery industry in the “trough†has shown internal adjustments, and the pace of internationalization has accelerated.
Despite the decline in overall industry performance in the first half of the year, due to falling prices, a large amount of new production capacity began to be transferred to the international market. Data from the China Investment Association shows that in the first half of the year, the domestic construction machinery industry exports reached 3.825 billion, an increase of approximately 32.9% year-on-year.
After a period of rapid development, China's construction machinery industry has achieved a significant advancement in the level of science and technology. Many intelligent technologies have reached international standards, and inexpensive and high-quality products have sufficient international competitiveness. Experts in the industry believe that together with the Chinese government's "steady growth" signal, it is expected that the industry as a whole will still achieve a 12% increase, and export growth will reach more than 30%.
Based on a variety of favorable factors, every local investment in construction machinery is again culminating. For example, as an important gathering place for domestic construction machinery industry, Jiangyin Lingang New City Construction Machinery Industrial Park has become a hot spot for investment, including domestic and foreign complete machine and component companies, including China United, Sany, Komatsu, and Doosan, which are expected to settle in several places. During the year, it achieved a scale of 100 billion yuan and became an important brand base for the Chinese construction machinery industry.
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