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Industry situation of construction machinery

2022-07-20
       Construction machinery is an important part of the equipment industry. In a nutshell, the machinery and equipment necessary for comprehensive mechanized construction projects required for earthwork construction, road construction and maintenance, mobile lifting and unloading operations and various construction projects are called construction machinery.

      It is mainly used in national defense construction projects, transportation construction, energy industry construction and production, mining and other raw material industrial construction and production, agriculture, forestry and water conservancy construction, industrial and civil construction, urban construction, environmental protection and other fields.

      In all countries in the world, the names of this industry are basically the same, among which the United States and the United Kingdom are called construction machinery and equipment, Germany is called construction machinery and equipment, Russia is called construction and road construction machinery, and Japan is called construction machinery. In China, some products are also called construction machinery, and the machinery system is collectively referred to as construction machinery according to the approval of the State Council to form the industry, which has continued to the present. Countries have roughly the same product range for this industry. Compared with other countries, China's construction machinery has also added industries such as railway line construction machinery, forklifts and industrial handling vehicles, decoration machinery, elevators, and pneumatic tools.

      Humans have a long history of using lifting tools to replace manual labor. According to historical records, around 1600 BC, China had already used tangerine and reel. The former is a heavy lever, and the latter is the prototype of the hand winch. In ancient Egypt and Rome, lifting tools were also widely used. The development of modern construction machinery began after the invention of the steam engine. At the beginning of the 19th century, steam engine-driven excavators, road rollers, cranes, etc. appeared in Europe. Since then, due to the invention of internal combustion engines and electric motors, construction machinery has developed rapidly. After the Second World War, it developed even more rapidly. Its variety, quantity and quality directly affect the development of a country's production and construction, so all countries attach great importance to it.

      In the first quarter of 2013, due to the huge market holdings and the limited stimulation of downstream infrastructure investment, the market demand for new construction machinery remained sluggish. In order to control costs and reduce capital occupation of finished products, major companies still regard destocking as their primary task, and are relatively cautious in organizing production. Taking excavators and loaders as an example, the cumulative output in the first quarter was 38,225 units and 47,199 units, down 32.3% and 14.4% year-on-year, respectively. Among them, the decline in the output of excavators increased by 10.7 percentage points compared with the same period of the previous year, and the decline in the output of loaders was higher than that of the previous year. It narrowed by 6.3 percentage points year-on-year.

      In the past 20 years, China's urbanization rate has increased the fastest, from 27.99% in 1993 to 52.57% in 2012. The rapid increase in urbanization rate has led to a great increase in the demand for construction machinery, which is the biggest background for the golden 10 years of the domestic construction machinery industry. The experience of the United States, Japan, Brazil and other countries shows that after the urbanization rate exceeds 50%, it can still maintain high-speed growth for nearly 20 years, and it will gradually slow down until it exceeds 70%. Vigorously promoting urbanization has become the governing goal of the new government. The first draft of the "Plan for Promoting the Healthy Development of Urbanization 2011-2020" led by the National Development and Reform Commission has been prepared and will be released soon. It can be foreseen that in the next 20 years, it is a high probability event that my country's urbanization rate will increase to 70%.

      After 50 years of development, China's construction machinery industry has formed an important industry with considerable scale and vigorous development that can produce 18 categories and more than 4,500 specifications and models, which can basically meet the needs of the domestic market. In 2005, there were about 1,000 enterprises above designated size producing construction machinery products in China, including 130 wholly foreign-owned joint ventures; 300 enterprises with annual sales of over 10 million; 100 enterprises with annual sales of over 100 million yuan, with annual sales of 94 billion yuan. It accounts for 75% of the whole industry; there are 23 enterprises with more than 1 billion yuan, and the annual sales account for 50% of the whole industry.

      For the construction machinery industry, it is the key to adjust the product structure in the development. First, it must focus on the domestic market demand, and at the same time develop products that are competitive in the international market. For the advantageous products that have already occupied the market, new varieties should be added to meet the various working environments in different regions and different climates. In product development, we should focus on the international market level, domestic construction projects and the needs of rural development, and do more user research and market analysis. In addition, special attention should be paid to the structural adjustment and development of engineering machinery supporting engines and key parts and components. Improving the level of supporting parts is one of the keys to the level of products.

      The demand and growth rate of construction machinery products have a strong correlation with GDP and the scale of capital construction investment. During the "Tenth Five-Year Plan" period, China's construction machinery consumption accounts for an average of 1.9% of the total fixed assets in the whole society.

      The global financial crisis broke out in 2008, and the domestic construction machinery industry was affected to varying degrees. However, the Chinese government subsequently issued ten investment measures and an investment plan of 4 trillion yuan, which once again showed that the government promotes the economy by increasing investment. The determination to grow is conducive to the domestic demand for construction machinery. Stimulated by the 4 trillion investment plan, construction machinery is expected to resume growth in 2009.

      Expansion of domestic demand to promote the recovery of the development trend of construction machinery

      Under the financial crisis, the construction machinery industry has taken active response measures. Driven by policies related to maintaining growth, expanding domestic demand, and adjusting structure, it has transformed its development mode and sought new economic growth points. The construction machinery industry has shown a recovery trend.

      In response to the economic crisis, the state invested 4 trillion yuan to stimulate domestic demand and improve economic development. With the support of the national economic policy, various domestic engineering projects have started construction on a large scale, and the demand for construction machinery has rebounded significantly, especially the domestic demand, which is better than the export. In April, the average daily output of cranes increased by 4.1% compared with March, and the growth rate of loaders, conveyors, excavators and compactors was 12.6%-50.6%. According to relevant data, the sales volume of the construction machinery industry continued to recover, and the most prominent performance was the excavator. Its February sales increased by 36% year-on-year and 2.9 times month-on-month; total sales in March were 13,314 units, a month-on-month increase of 61%. Among them, crawler excavators are the most representative excavator products. In the first quarter, China imported a total of 3,903 crawler excavators, a year-on-year decrease of 56.2%; and exported 701 units, a year-on-year decrease of 57.2%, showing a steady growth in the excavator industry. The situation shows us the good market prospects of the machinery industry, and domestic demand has shown a clear recovery. The announcement of bidding and bid-winning information for related construction projects such as highways, railways, and urban railroads has increased significantly on relevant websites. The “Road Construction Network”, which focuses on the construction of highway and railway projects, publishes hundreds of bidding and bid-winning information every day. It can be seen that there are many construction projects in the construction machinery industry, so the domestic sales of construction machinery will inevitably increase.

      Under the economic crisis, exports have declined, and some companies have a high degree of dependence on foreign exports. Seeking markets in China has become a major development channel for the construction machinery industry. Under this circumstance, the domestic demand for construction machinery is on the rise, and there are obvious signs of recovery in the development of construction machinery. 

      With the market demand and changes, the demand for construction machinery operation technology has increased, and the wireless control system of construction machinery has become popular. Hercules industrial wireless remote control has become a major control supporting product in the construction machinery industry.

      After the Great Recession in 2009, the global construction machinery ushered in the second year of strong growth in 2011. In 2011, the sales of the top 50 global construction machinery companies increased by 25% compared with 2010, reaching US$182 billion, a record high in the industry. , surpassing the record of $168 billion before the 2008 global financial crisis, showing the momentum of strong global sales.

      In the past 10 years, my country's construction machinery industry has achieved remarkable results in the transformation of the development mode and the adjustment of the economic structure, the comprehensive strength has been rapidly enhanced, and the international competitiveness and industrial status have been greatly improved. The technical level and reliability of various products in my country's construction machinery industry have reached or even exceeded the international advanced level, and there are many well-known Chinese brands in the world's construction machinery field.

      From January to October 2012, the national construction machinery industry completed a total industrial output value of 501.633 billion yuan, a cumulative year-on-year increase of 1.53%; the completed sales output value was 492.263 billion yuan, a cumulative year-on-year increase of 2.5%. The production and sales ratio is 98.13%. The national construction machinery industry accumulated a total export delivery value of 29.013 billion yuan, a year-on-year increase of 21.44%. Among them, the export of special equipment for marine engineering maintained a relatively high growth rate of 44.49%; the manufacturing of special machinery for the production of building materials was the lowest at 11.8%.

      During the 12th Five-Year Plan period, the steady and upward Chinese economy will provide an important and continuous driving force for the development of the construction machinery industry. Benefiting from this, coupled with the continuous improvement of corporate innovation capabilities and comprehensive competitiveness, my country's construction machinery industry will continue to maintain a high level of operation. According to the "Twelfth Five-Year" development plan of China's construction machinery industry, by the end of the "Twelfth Five-Year" period, the sales scale of my country's construction machinery industry will reach 900 billion yuan, with an average annual growth rate of about 17%, compared with 27.5% in the past five years. In terms of the average growth rate of % and the average growth rate of 23.8% in the past 10 years, with the continuous growth of the overall scale of the industry in the future, the growth rate will gradually decline, and the industry will enter a steady growth in the medium and long term.

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