In 2013, the construction machinery industry was unable to recover

It is difficult to say that the recovery market is still sluggish. From March 2011 to the end of March 2013, the construction machinery industry in China has been sluggish for 24 months. At present, 5 listed companies in the industry have disclosed the 2012 annual report, achieving a total net profit of 10.186 billion yuan, a year-on-year decrease of 18.37%; operating income of 98.032 billion yuan, a year-on-year decrease of 4.29%. According to the data from the China Construction Machinery Industry Association, the total sales revenue of 13 major domestic companies in 2012 was 369.86 billion yuan, a decrease of 3.68% from 2011, and profits decreased by 22.343 billion yuan, a decrease of 34.1%. At the same time, the overall profit margin of the construction machinery industry decreased from 8.83% in 2011 to 6.04% in 2012, and the overall financial expenses increased by 73.8% year-on-year.

With the continuous release of sales data in the first quarter of 2013, the development trend of the construction machinery industry has become clearer. According to statistics, sales in December were significantly lower than expected. In December, a total of 11058 excavators were sold, a year-on-year decrease of 46.9%; 16,874 loaders were sold, a year-on-year decrease of 32.2%; bulldozers sold 1,168 units, a year-on-year decrease of 38.6%; roller roads sold 1,399 units, a year-on-year decrease of 17.56%. From the above data, it can be seen that in the first quarter of this year, the sales of the main products of construction machinery such as excavators, loaders, bulldozers, road rollers, etc. all declined, which sounded the alarm for enterprises.

According to industry sources, the large-scale infrastructure construction driven by investment in previous years has brought unprecedented opportunities for the development of the construction machinery industry in China, but as the investment scale is too large, the CPI consumer price index remains high. The state has continuously tightened the scale of investment. In 2012, the demand in the domestic market quickly shrank. Although the state approved a batch of infrastructure projects at the end of last year, it will take some time from approval to implementation, and the traction that it brings to the construction machinery industry will lag behind. At present, this pull effect is not yet obvious. From the perspective of the international market, the export of construction machinery products is also increasingly affected by international trade friction. If Brazil adjusts its import tax from 2012, the overall tax rate on construction machinery imported from China will increase by 25%, creating obstacles to the export of Chinese products. In addition, with the rapid development of the past 10 years, the construction machinery industry and off-site funds have entered the field one after another. The problem of excess capacity in the industry has become increasingly prominent. The homogenization of products among construction machinery companies is particularly serious and the market competition is fierce. Although the gap between domestic industry enterprises and international advanced counterparts has gradually narrowed in these years, compared with similar foreign products, the gap in durability and reliability of domestic construction machinery products remains large.

Optimistic about the future of the second half or welcome "inflection point"

In spite of this, there are also optimistic people expect that although the current production and sales of the construction machinery industry have fallen sharply, the decline rate has stabilized. In the long run, with the continuous development of China's economic construction, the construction machinery industry will have better development prospects in the next 20 years. In the short term, with the passage of time, the pulling effect of policies will be put in place. In 2013, the overall construction machinery industry will continue to develop steadily. The second half of this year will be a turning point in the construction machinery industry.

For 2013, Jun Jun, president of the China Construction Machinery Association, believes that China's economic growth rate is still within the target range set in early 2012, and has shown a trend of stabilization and recovery. With the introduction of intensive policies and measures in place in the early stage, And to play a role, the Chinese economy is expected to stabilize further in 2013.

Jun Jun said that despite the deepening of the European debt crisis, the US’s sovereign credit rating was lowered, the world financial market was further turbulent, and global inflation pressures were further increased. However, Chinese companies will still face precious strategic opportunities in the international market, especially In BRICS countries such as Brazil, Russia, India, and South Africa, the demand for construction machinery has steadily risen. Developing countries such as South America, the Commonwealth of Independent States, Southeast Asia, the Middle East, and Africa still have huge market demand.