The second quarter of this year, the growth rate began to decline rapidly, the construction machinery industry has not yet shown signs of going down, the entire industry growth is still "drilling." Affected by this, the expansion of production capacity of construction machinery companies before this time is turning into excess capacity.
The growth rate of the industry continues to slow down The China Construction Machinery Industry Association once predicted that the construction machinery industry is expected to achieve an average annual growth of 17% in the next five years. However, this growth target is now being challenged.
According to a survey conducted by the China Construction Machinery Business Network, in September, 26 major excavator manufacturers in China sold 8,886 excavators, a year-on-year decrease of 23.86%. The accumulated growth of excavators has climbed to a high point since February this year and has fallen for several months.
The continuous decline in excavator sales is a typical reflection of China's construction machinery industry. According to industry experts, since the second quarter of this year, sales of the construction machinery industry have continued to decline, and this phenomenon has not been curbed in the third quarter.
Zhan Chunxin, chairman of Zoomlion, believes that the declining growth rate of the construction machinery industry has already begun to show signs at the end of last year. In the first quarter of this year, the industry unexpectedly experienced an explosive growth. In fact, the market demand has been overdrawn, and construction machinery sales have declined significantly since the second quarter. .
The slowdown in railway construction and real estate regulation and control are the main reasons for the decline in sales volume in the domestic construction machinery industry. According to statistics, the Ministry of Railways completed the capital construction investment of 346.879 billion yuan in the first nine months, a year-on-year decrease of 19.3%. In the third quarter, the national railways ended the great leap forward of many years of investment.
The data also shows that in the first three quarters of this year, China's fixed asset investment increased nominally by 24.9% year-on-year (a real increase of 16.9% after deducting price factors), which is 0.7 percentage point lower than that in the first half of the year. The downstream demand of the construction machinery industry has shrunk.
Does the industry sales continue to decline, or will it rebound in the fourth quarter? At the 2011 Global Construction Machinery Industry Conference and Top 50 Summit held recently, industry insiders believe that there may be a tail-slip phenomenon in the fourth quarter of this year.
However, a number of industry experts believe that the construction machinery industry will have a hard time recovering to its previous growth rate if the macroeconomic policies are unchanged. Xia Bin, director of the Financial Research Institute of the Development Research Center of the State Council, warned against using the past growth rates to analogize and derive future growth rates. The future development of the construction machinery industry faces more uncertainties.
The issue of overcapacity has highlighted the fact that the overcapacity issue in the domestic construction machinery industry has become increasingly prominent under the backdrop of slowing industrial demand. The "overcapacity" has also become the focus of the construction machinery industry conference.
Zhan Chunxin said bluntly that overcapacity in the construction machinery industry is causing vicious competition in the industry. Xumin Group Chairman Wang Min and Liu Gong General Manager Zeng Guangan agreed that there has been excess capacity in construction machinery. However, they believe that the overcapacity in the industry is a surplus of low-end products, and there is still room for high-end products.
Driven by the investment of 4 trillion yuan, the construction machinery industry has achieved rapid development, and related companies have increased investment to expand production capacity. Most of the listed A-share listed construction machinery companies have used or are expanding their production capacity through additional financing.
The data shows that since 2010, listed companies, including construction machinery companies including Xugong Machinery, Zoomlion, Sany Heavy Industry, Liugong, and Changlin, have all undergone private placement and refinancing. XGMA's refinancing plan has also been approved by the China Securities Regulatory Commission this year. The company’s fund-raising plan exceeds 20 billion yuan.
However, the investment enthusiasm of construction machinery companies has encountered the country's macroeconomic control, and new production capacity has rapidly become excess production capacity. International experts call the overcapacity of Chinese companies the "overcapacity of assembly."
In order to deal with the increased competition in the industry brought about by excess capacity, some large construction machinery companies are calling for industry management departments to set industry standards to regulate market competition.
The growth rate of the industry continues to slow down The China Construction Machinery Industry Association once predicted that the construction machinery industry is expected to achieve an average annual growth of 17% in the next five years. However, this growth target is now being challenged.
According to a survey conducted by the China Construction Machinery Business Network, in September, 26 major excavator manufacturers in China sold 8,886 excavators, a year-on-year decrease of 23.86%. The accumulated growth of excavators has climbed to a high point since February this year and has fallen for several months.
The continuous decline in excavator sales is a typical reflection of China's construction machinery industry. According to industry experts, since the second quarter of this year, sales of the construction machinery industry have continued to decline, and this phenomenon has not been curbed in the third quarter.
Zhan Chunxin, chairman of Zoomlion, believes that the declining growth rate of the construction machinery industry has already begun to show signs at the end of last year. In the first quarter of this year, the industry unexpectedly experienced an explosive growth. In fact, the market demand has been overdrawn, and construction machinery sales have declined significantly since the second quarter. .
The slowdown in railway construction and real estate regulation and control are the main reasons for the decline in sales volume in the domestic construction machinery industry. According to statistics, the Ministry of Railways completed the capital construction investment of 346.879 billion yuan in the first nine months, a year-on-year decrease of 19.3%. In the third quarter, the national railways ended the great leap forward of many years of investment.
The data also shows that in the first three quarters of this year, China's fixed asset investment increased nominally by 24.9% year-on-year (a real increase of 16.9% after deducting price factors), which is 0.7 percentage point lower than that in the first half of the year. The downstream demand of the construction machinery industry has shrunk.
Does the industry sales continue to decline, or will it rebound in the fourth quarter? At the 2011 Global Construction Machinery Industry Conference and Top 50 Summit held recently, industry insiders believe that there may be a tail-slip phenomenon in the fourth quarter of this year.
However, a number of industry experts believe that the construction machinery industry will have a hard time recovering to its previous growth rate if the macroeconomic policies are unchanged. Xia Bin, director of the Financial Research Institute of the Development Research Center of the State Council, warned against using the past growth rates to analogize and derive future growth rates. The future development of the construction machinery industry faces more uncertainties.
The issue of overcapacity has highlighted the fact that the overcapacity issue in the domestic construction machinery industry has become increasingly prominent under the backdrop of slowing industrial demand. The "overcapacity" has also become the focus of the construction machinery industry conference.
Zhan Chunxin said bluntly that overcapacity in the construction machinery industry is causing vicious competition in the industry. Xumin Group Chairman Wang Min and Liu Gong General Manager Zeng Guangan agreed that there has been excess capacity in construction machinery. However, they believe that the overcapacity in the industry is a surplus of low-end products, and there is still room for high-end products.
Driven by the investment of 4 trillion yuan, the construction machinery industry has achieved rapid development, and related companies have increased investment to expand production capacity. Most of the listed A-share listed construction machinery companies have used or are expanding their production capacity through additional financing.
The data shows that since 2010, listed companies, including construction machinery companies including Xugong Machinery, Zoomlion, Sany Heavy Industry, Liugong, and Changlin, have all undergone private placement and refinancing. XGMA's refinancing plan has also been approved by the China Securities Regulatory Commission this year. The company’s fund-raising plan exceeds 20 billion yuan.
However, the investment enthusiasm of construction machinery companies has encountered the country's macroeconomic control, and new production capacity has rapidly become excess production capacity. International experts call the overcapacity of Chinese companies the "overcapacity of assembly."
In order to deal with the increased competition in the industry brought about by excess capacity, some large construction machinery companies are calling for industry management departments to set industry standards to regulate market competition.
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