Jiangxi Yiyuan Industrial Co., Ltd
Jiangxi Yiyuan Industrial Co., Ltd

Speculate: Nine factors impact the 2013 construction machinery industry


Courtesy of Jiangxi Yiyuan Industrial Co., Ltd

In 2012, China's construction machinery industry feel the hardships and helpless, the macroeconomic growth slowdown once let investors bearish on the prospects of the construction machinery industry, the downstream demand continues to shrink so that overcapacity enterprise overwhelmed. China's construction machinery industry plodding pace to 2013, under the macro-economic stabilization and recovery, urbanization, in contrast, the bottoming out of real estate, railway and rail transportation and other infrastructure construction into the background of the large-scale construction period, the future of the construction machinery industry seems very beautiful. But 'people without thought, he must worry about' Moreover, China's construction machinery has not really out of the quagmire, always remain vigilant, to go further.

Below with your guess together, people are excited and encouraged about five favorable factors of the construction machinery industry.

The macroeconomic side will moderate recovery

Justin Lin, World Bank chief economist, said '2013 Economic Outlook Forum in New York on January 8, 2013, China's economic growth rate will be between 8% and 8.5%, slightly faster than the 2012. And in the next 20 years, China's economy will continue to have high growth potential.

The policy will continue to coordinate the 'troika' of the relationship. Some analysts pointed out that the macroeconomic policy will be committed to enhancing the role of consumption on the basis of economic growth, the policy is expected to introduce a new round of promotional fees, and support efforts to improve the structural tax cuts to increase investment. Policy role, the role of investment and consumption in boosting the economy will increase the the producers overall business environment will be improved. Also this year, the international environment facing the economy is still complex and changeable, difficult to have a significant improvement in external demand, but it will be better than 2012. Expected that the central bank will maintain the stability of the RMB exchange rate, the continuation of the two-way volatility of the situation, and provide a favorable exchange rate environment for foreign trade.

Good macroeconomic fundamentals, will effectively promote the development of various industries, the construction machinery industry will also benefit from stable to good macroeconomic situation. In the context of investment in fixed assets improved recovery and downstream industries, more conducive to the transformation and upgrading of the ELECTRIC REACH TRUCK industry.

Further expansion of urbanization

Urbanization will be the next step in the development of China's economic engine. Push forward with the process of urbanization, the continuous release of 40 trillion investment, infrastructure, real estate investment rebounded and government accelerated infrastructure construction in the western region, including transportation, water conservancy, urban construction, resource development and other development projects in full swing provide a favorable market environment for the basis of the sales of construction machinery(Transpaleta Eléctrica).

Types of infrastructure investment around the layout of the development of urbanization will also become an important force for economic recovery in 2013. Roads and bridges, built schools to build hospitals, water, electricity, gas, postal, nets, letter, silver 'basis supporting or cover residential construction of shopping malls, dozens of industries will drive hundreds of manufacturing the departmental interaction benefit, which will bring lasting impetus to the development of construction machinery.

Railway infrastructure investment is steadily recovering

Chinese Academy of Engineering said that Wang Mengshu, rail infrastructure investment will remain high momentum in 2013. Most industry experts said, the 2013 railway infrastructure investment is certainly in more than 600 billion yuan, preliminary planning is about 630 billion yuan. Urban rail transit will flourish, Development and Reform Commission has approved 34 urban rail transit development plan in 2012,

The railway a substantial increase in investment in infrastructure, to achieve the stated objectives in accordance with the relevant planning, on the other hand, increasing construction costs. 'The high-speed rail to be repaired, the coal line to be repaired, the provincial capital also pull through. Analysis pointed out that the launching of new projects this year, certainly better than last year. Railways and other infrastructure projects, the project started, excavators, bulldozers, cranes will drive , concrete machinery, such as the use of related species.

Rigid demand of the property market has not diminished

For 2013, the trend of the real estate industry, we think that overall it is quite optimistic, moderate growth is expected to continue throughout the year but the industry as a whole is difficult now reversed. Push forward with the domestic and international macro-economic environment continues to improve, as well as the central urbanization construction, the real estate industry will be the formation of a certain good.

With the stable of the late macroeconomic environment continued to improve, and the policy side, or will the property market continues to rebound, creating good conditions. 2013 sales data of the real estate industry is still expected to maintain steady growth. Under the premise of stable sales growth, the real estate investment will remain steady rise of the trend, and will drive the development of construction was speeded up.

Go out is still in a period of strategic opportunities

Chinese construction machinery enterprises in 2012 'collective sea, to become a landmark event in the internationalization of Chinese enterprises on the road. 2013 or upgrading technology and brand, or broaden the product line, or win the overseas market, the majority of Chinese drill rig enterprises out of pace will be more robust.

Some experts said the Chinese construction machinery enterprises collective sea 'represents a new trend for Chinese enterprises to go: by physical assets earlier targeting energy resources, to shift attention to the brand, technology and channels of intangible assets, in order to spur China transformation and upgrading of the manufacturing sector. The economic development of Latin America, Africa, Southeast Asia, Central Asia, South Asia and other regions in a rapid increase in channel infrastructure there to be further improved China's construction machinery industry, which is going out in terms of positive significance.

Discussed below 2013 China Construction Machinery potential four unfavorable factors, for reference.

Overcapacity vicious competition

China's engineering machinery industry, there is the problem of excess production capacity, loaders and excavators, for example, on the domestic market in 2012, more than more than 50 various types of loader manufacturers, 28 major companies control more than 90% of the market share, excavator approximately 40 manufacturers, 23 major companies control more than 80% of the market share, the two leading production companies serious overcapacity situation.

On the export side, the majority of small and medium enterprises in China's construction machinery exports to take low-cost, low-price, low-level competition mode, prone to growing international trade disputes, China has increasingly become the object of trade protectionism against the risk of anti-dumping .

In the evening of January 9, Sany Heavy Industry issued a bulletin on the Articles of Association, the company registered column to Changping District the Huilongguan Jhenbei clear road No. 8 Trinity Industrial Park. This means that Sany relocation to Beijing finally come to an end. This Vanda decorum with thirty-one November 2012, is closely related to the two sides in the battle of the white-hot market and public opinion. Mutual discredit and attack each other, the meidcal machinery industry is facing a collective crisis of confidence.

Receivables surge in capital increased pressure

In the case of a decline in growth rate of the overall macroeconomic sluggish downstream demand, the major domestic machinery manufacturers to increase market share, launched installments increase the credit sales radical strategy. Resulting in the construction machinery industry in the winter is far from over, the market demand is still sluggish. Construction machinery enterprises in lost revenue, net profit fell, receivables not fall but rise remains substantial growth.

Sany, Zoomlion, XCMG machinery Liugong, Shantui, Xiamen Engineering shares and Sunward construction machinery industry representative listed companies. The data show that in the third quarter of 2012, the receivables in the overall growth momentum remains strong. Was in full swing, the risk of the industry continue to accumulate.

In the under credit sales model, the amount of downstream projects to reduce the user an overdue rate, the corporate receivables continue to rise, increasing the pressure on the enterprise funds, bonds payable and a substantial increase in long-term borrowings, finance costs also rose considerably.

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