Construction Machinery Needs to Make Effective Use of Urbanization

At the end of the year in 2012, the development of construction machinery for a year was not considered. High inventory, huge amounts of accounts receivable, and poor competitive environment have become major issues that have plagued the development of the industry.

After the "18th National Congress" was held, the central government's strategy for "new urbanization" has become increasingly clear. For example, the report of the 18th National Congress pointed out that to promote the simultaneous development of industrialization, informatization, urbanization, and modernization of agriculture, it is necessary to focus on changing the demand structure, optimizing the industrial structure, promoting the harmonious development of the region, and promoting urbanization. Major structural problems in development." A series of economic measures have become construction machinery to save the straw. The most attention-grabbing urbanization construction deserves to be a "high-speed car" that cannot be missed by the construction machinery industry. According to relevant data, for every additional urban resident, the city needs to increase the investment in fixed assets by 500,000 yuan, and by increasing the urbanization rate by one percentage point, the rural population influx into the city will increase by 13 million (calculated by the population of 1.3 billion). Therefore, it will drive 6.6 trillion yuan in urban construction investment.

According to economists, urbanization is a brand-new investment subject, mainly involving two major core lines. First, the focus of intercity and urban rail transportation connecting the central cities and towns will replace the construction of high-speed railways in the past. In other words, the future of rail transit construction will focus on urban rail transit to surrounding areas.

In 2020, China will have more than 50 cities to develop rail transit, covering more than 7,000 kilometers, covering major Chinese cities. China has now completed and opened more than 1,700 kilometers of urban rail transit. It has approved 34 cities in the near-term planning and construction of a total of 177 projects and 141 routes. The total mileage is approximately 4382 kilometers, and the total investment exceeds RMB 2 trillion. With the construction of rail transit construction projects including Beijing and Xi’an, etc., the market demand for shield machines will enter an unprecedented period of rapid development. In addition, the construction of rail transit will also drive earth and rock machinery, piling machinery, and lifting. The full development of machinery and other products.

Another main line of urbanization is the real estate industry. The development of the central cities and towns will surely make rural education and employment resources concentrated in cities and towns, so that the amount of property purchased by towns can be released. Therefore, the real estate market in four-tier cities and central towns will flourish.

Ren Zhiqiang, chairman of Huayuan Real Estate, also believes that the average urbanization rate in the world is 59%, and China is now 51%. For China, the second largest GDP country in the world, the urbanization rate is not high, among which the three or four lines are not high. The city’s urbanization rate is not even 40%, so urbanization is the basis for the development of the next decade. Real estate is still the pillar industry in 10 years. Therefore, although the national real estate control policy will not relax, the related construction machinery industry still has considerable growth space in the construction markets of the third and fourth-tier cities and central towns.

Although the process of urbanization in China has shown vigorous development, judging from China's current national conditions, there are still many problems in the process of urbanization that are difficult to solve. However, in the long run, the urbanization process in our country is unstoppable and it is undoubtedly a wise move to break through the downturn in the industry.