Machinery industry: China's construction machinery in the next five years development direction?

Industry status:

Media reports 2, the China Construction Machinery Industry Association Secretary General revealed that the construction machinery industry "12th Five-Year" plan has been submitted to the relevant departments of the state, will be released in July. We believe that the industry "12th Five-Year" plan will release the construction machinery for the next five years to show the direction of development, help to enhance the market for construction machinery long-term growth of confidence in space.

1) the whole industry will continue to achieve steady growth: "12th Five-Year" period, 2015 construction machinery industry sales revenue is expected to reach 900 billion yuan, an average annual compound growth rate of 17%, the industry exports will reach $26 billion, exports accounted for nearly 20%. Despite the growth rate of 21.3% and 2006-2010, 2001-2005 and 28.1%, industry growth has slowed significantly during the period of 12th Five-Year. But we believe that in the past ten years after the peak of growth experience, the market worried about the construction machinery market is already saturated, it is difficult to achieve growth, while the "12th Five-Year" planning will be introduced to a certain extent, enhance the market of construction machinery of long-term growth of confidence.

2) the growth rate of product performance will reflect the difference from the 12 products industry association statistics point of view, to benefit from the penetration increases, and the tower crane concrete pump truck, concrete mixer truck for concrete machinery in the next five years the average annual compound growth rate is expected to reach more than 15%; wheel cranes, crawler cranes, graders, pavers are expected to achieve steady growth in the next five years, the average annual compound growth rate of more than 10%; and rollers, loaders, bulldozers due to market holdings increased significantly and the substitution effect of low growth, the next five years the average compound growth rate only to maintain single digit growth;

3) the development of core components will be promoted to a new height: the key infrastructure, component development lags behind, is a bottleneck restricting the long-term competitiveness of construction machinery. Over the past ten years, the market demand has been brisk, and enterprises have focused on the rapid expansion of the mainframe capacity to meet the market demand, and the development of key components and basic technologies has lagged behind for a long time. We believe that with the increasing competition in the industry in 12th Five-Year "during the development of the core components are expected to be promoted to a new height, is expected to form a government led, industry association, led by leading enterprises combined with a breakthrough in the situation, so as to achieve a qualitative leap;

4) industry restructuring, mergers and acquisitions is expected to accelerate: we believe that with the new round of capacity expansion since 2010, overcapacity in the "12th Five-Year" in the middle and late may become a key factor restricting market development. The next five years, the industry leading enterprises are expected to use their own advantages, through mergers and acquisitions to expand product chain and the layout of the market, the market competition mechanism to eliminate backward and low level repeated construction, industry concentration will be significantly improved.