Excavators lead the "new trend" high growth momentum or will continue

In 2011, under the pressure of the country’s tightening of macroeconomic control and regulation of the real estate industry, the growth rate of the construction machinery industry has been forecasted by industry insiders to drop significantly. However, the news that the Ministry of Housing and Urban-Rural Development will sign a “military order” for the construction of affordable housing around the country will allow news. The construction machinery industry saw new growth points. The excavators that have benefited the most from this are the excavators. In 2010, the excavators that led the "new trend" of the construction machinery industry, despite facing a great risk of excess capacity, the development prospects in 2011 are still bullish.

Due to the different application areas and market saturation levels, the recovery efforts of different products of construction machinery are also different, and the growth rate of production and sales volume shows a certain degree of difference. Excavator growth, in addition to the growth of state construction investment and the recovery of real estate and other industries, but also related to the growth of excavators. As an earth-moving machine with high technical content, excavators started late in China. As the effect of excavator replacement on loaders emerged and the economic benefits of alternative manpower increased, the growth momentum of this product was obviously better than that of other construction machinery products. The market development space is promising. Although real estate faces the pressure of state regulation and control in 2011, the infrastructure construction in high-speed railways, water conservancy and other areas will still give excavators greater opportunities for growth.

While the traditional industrialization is undergoing a transition to a new type of industrialization and the traditional inflated urbanization is moving towards a positive era of vigorous and stable urbanization, the rapid development of construction machinery can be said to be in line with the market, and the arrival of infrastructure, such as railways, highways, and water conservancy, is coming. To a large extent, the excavator-based earth-and-rock machinery has shown an explosive growth.

According to the “2011-2015 China Excavator Market Analysis and Prospects Forecast” released by China Construction Machinery Business Network, it shows that the construction of affordable housing, water conservancy, and high-speed rail will promote the continuous growth of excavator's high growth momentum. According to industry sources, 40% of construction machinery is related to real estate. Real estate regulation has a negative impact on construction machinery, but affordable housing will reduce the impact of real estate regulation. At the beginning of the 2011 New Year, all parts of China announced plans and measures to accelerate the construction of affordable housing in 2011. As more people will receive benefits, the construction machinery excavator brand in China will also benefit greatly.

From the perspective of current urbanization and infrastructure investment in the country, the market share of small and medium excavators in domestic enterprises is relatively objective, and there is still a big gap between the development of medium-sized and large-scale excavators compared with the international level, especially for parts and components. Development has always been the bottleneck of the development of the excavator market and even the entire Chinese construction machinery market. Therefore, while seeing great potential for development, companies must continue to strengthen their own R&D team, strengthen their own technological innovation and development, and enhance their core competitiveness while promoting the healthy and rapid development of the excavator market.