The demand for domestic construction machinery market will maintain stable growth in 2020

Su Zimeng: The domestic construction machinery market demand will maintain stable growth in 2020

August 18, 2020 15:12 First Construction Machinery Network Song Jiaman

On August 18, 2020, the online forum for the coordinated development of main components in the construction machinery industry was launched online. Numerous industry experts are focusing on the current situation of the construction machinery industry, jointly researching and exploring the coordinated development of host and supporting parts enterprises through information exchange and resource sharing, building a new supply chain system, and seeking win-win development in the industry. Su Zimeng, Executive Vice President and Secretary General of China Construction Machinery Industry Association, delivered a report titled "Analysis of Market Operation and Development Trends in the Construction Machinery Industry".

Su Zimeng, Executive Vice President and Secretary General of China Construction Machinery Industry Association, shares online "Analysis of Market Operation and Development Trends in the Construction Machinery Industry"

In 2019, the entire industry achieved a revenue of 668.1 billion yuan, a year-on-year increase of 12%

As for the performance of the industry in 2019, Su Zimeng concluded that in the face of the complex market environment, the construction machinery industry has made further achievements in the transformation and upgrading of the industry with the help of China's stable macro-economy and stable fixed assets investment, accelerating the update of second-hand equipment in the market, the positive effect of the implementation of air pollution prevention and environmental protection policies on the market, and the construction of the "the Belt and Road" to drive export growth, Under the combined influence of various factors such as the promotion and application of new technologies and construction methods in the construction field, the construction machinery market has experienced rapid growth. After experiencing a five-year period of low development and rapid recovery and growth from 2017 to 2018, the industry has ushered in a year of stable development. According to the statistics and summary of the China Construction Machinery Industry Association (hereinafter referred to as the Association), after deducting incomparable factors, duplicate data, and non construction machinery industry revenue, the entire industry achieved a revenue of 668.1 billion yuan in 2019, a year-on-year increase of 12%.

Sales volume and export volume of main products in the construction machinery industry from January to December 2019 (data source: China Construction Machinery Industry Association)

From January to June 2020, sales volume improved month by month, with a year-on-year increase of 14.4%

In 2020, the COVID-19 has posed a huge challenge to the development of China's construction machinery industry. Regarding this, Su Zimeng stated that despite the impact of the epidemic in the first half of 2020, it changed the tradition of March as the annual sales peak in previous years. However, thanks to the significant achievements in China's epidemic prevention and control work, the active implementation of resumption of work and production measures in various regions, and the positive impact of stricter environmental emission requirements, the sales of excavators, forklifts, and lifting platforms in March still reached a historic high; From April to June, the sales of excavators, truck cranes, truck mounted cranes, forklifts, road rollers, lifting platforms, and aerial work vehicles reached a historical high level during the same period.

Sales volume of major construction machinery products in China from January to June 2020 (data source: China Construction Machinery Industry Association)

The export situation of major construction machinery in China from January to June 2020 (data source: China Construction Machinery Industry Association)

According to the association's statistical data, the sales volume improved month by month in the first half of 2020, with a year-on-year decrease of 20.5% in sales of the main products of 12 key enterprises in January; February saw a year-on-year decrease of 44.8%; March saw a year-on-year increase of 2.34%, while January March saw a year-on-year decrease of 14.1%; The year-on-year growth in April was 38.3%, and the year-on-year growth from January to April was 0.49%; In May, the year-on-year growth was 40.9%, and from January to May, the year-on-year growth was 8.13%; The year-on-year growth in June was 51.7%, and the year-on-year growth from January to June was 14.4%.

Based on comprehensive analysis, the cumulative sales growth of 14.4% for the 12 types of complete machine products included in the association's statistics from January to June is still reasonable. However, the sales situation in the first quarter was far lower than expected, and the second quarter sales compensated for the gap between the first quarter sales and expectations. The overall situation in the second quarter was better than that in the first quarter, and the sales situation in the first half of the year showed a trend of low before high.

Continuous efforts in digitalization and intelligent engineering equipment have achieved fruitful results

In addition, Su Zimeng also discussed from the perspective of product technology development that as of now, the industry's digital and intelligent engineering equipment has achieved fruitful results on the basis of early innovative research and development. Some intelligent construction machinery with functions such as auxiliary operation, unmanned driving, status management, fleet management, safety protection, special operations, remote control, fault diagnosis, and lifecycle management have been applied in practice, effectively solving some difficult problems in construction. In order to meet the needs of economic construction for major engineering technology equipment, a batch of high-end engineering machinery and major technical equipment have emerged. Major technical equipment such as large shield tunneling machines, large all terrain cranes, double wheel milling machines, super large excavators, high-performance all terrain engineering vehicles, high-speed wheel excavators, and super large flat head tower cranes have participated in major engineering construction both domestically and internationally, effectively improving the level and status of China's engineering machinery. Due to the continuous improvement of design, manufacturing, testing and testing capabilities, some core components have made new progress in achieving import substitution. However, overall, the level of digitalization, greening, and complete sets of some products still needs to be improved, and the market competitiveness of some large equipment and core components is still insufficient.

In the face of future industry market trends, Su Zimeng said: Looking ahead to the whole year of 2020, we expect the domestic construction machinery market demand to have a stable growth. Judging from the current situation of the international COVID-19, this year's export of construction machinery will face greater pressure, and greater efforts are needed to maintain growth. In 2021, the demand for construction machinery market will maintain stable development, and new and updated market demand will play a joint role.