The turning point of the domestic market for construction machinery is approaching

Release date 2024-11-23 16:09:18 Reading 1

　　The turning point of the domestic market for construction machinery is approachingused excavator for sale

　　The domestic sales of excavators have achieved positive growth for four consecutive months, with a year-on-year increase of 4.66% in the first half of this year. The industry seems to be emerging from a downward cycle and opening up a recovery rhythm.used excavator for sale

　　But if we simply look at the market recovery from product sales, it is still not comprehensive enough to form strong support for the view that the industry is starting to emerge from the trough.used excavator for sale used excavator for saleused excavator for saleused excavator for sale

　　Regarding the four consecutive increases in domestic sales of excavators, industry insiders recently stated in a media interview that the domestic sales data of excavators have maintained positive growth in recent months, mainly due to structural changes and growth from small excavators, as factors such as inventory clearance and price reduction promotions will make small excavator sales better.used excavator for sale used excavator for saleused excavator for sale

　　The downstream application scenarios of Xiaodao mainly include agricultural water conservancy construction, etc; Medium and large excavators are mainly used in real estate, infrastructure and other fields, and their sales are relatively stable. If the operating rates in real estate, infrastructure and other fields remain low, it will be difficult for the demand for medium and large excavators to increase. Industry insiders believe that the industry is still in a low and fluctuating stage based on this when interviewed.

　　For the introduction and implementation of policies related to large-scale equipment update, as well as the issue of trillions of yuan of additional treasury bond projects, industry insiders believe that the impact on industry sales may be limited in the short term, but it will help the industry recover in the medium and long term.

　　From January to May 2024, the national fixed assets investment in agriculture, forestry, animal husbandry and fishery will increase by 4.7% year on year, and infrastructure investment will increase by 5.7% year on year, while the national real estate development investment will decline by 10.1% year on year, and the construction area of real estate development enterprises will decline by 11.6% year on year.used excavator for sale used excavator for saleused excavator for sale

　　In 2024, the progress of completing the quota for local bond issuance, especially for newly added special bonds, will be significantly delayed. From January to June, a total of 1825.9 billion yuan of local government bonds were issued, accounting for only 39.5% of the newly added quota. Among them, the newly issued special bonds amounted to 1493.5 billion yuan, with a issuance progress of 38.3%, significantly lower than the average of 59.0% in the same period of the past five years.

　　Between the growth and decline of data, it can be vaguely seen that the sales of small excavators have increased, while the macro background of medium and large excavators is still weak.used excavator for sale used excavator for saleused excavator for saleused excavator for sale

　　It is not difficult to see from this that the project lacks financial support, and the construction party and even the equipment leasing party cannot see the real money and are unwilling to advance funds to enter the market. They are based on using existing equipment to meet market needs, but of course, their willingness to invest in purchasing new equipment is not high.used excavator for sale used excavator for saleused excavator for saleused excavator for sale

　　Unlike the year-on-year growth in domestic sales of excavators, construction cranes are more significantly affected by real estate development investment. According to industry association data, domestic sales of tower cranes decreased by 61.2% year-on-year from January to May, while sales decreased by 45% year-on-year.

　　The construction machinery industry is a highly cyclical industry, which is mainly influenced by downstream demand changes in real estate, infrastructure, exports, as well as factors such as equipment renewal cycles and environmental emission policies. The average cycle of the construction machinery industry is roughly 8-10 years. The latest upward cycle started in 2016 and ended in the first half of 2021, followed by a three-year downward cycle.

　　During a media interview, a representative from XCMG Machinery stated that there have been significant changes in China's construction machinery and building engineering markets compared to previous years. China is undergoing "high-quality development" and the government is continuously optimizing its spending. After a previous peak period, the construction machinery industry has entered a period of adjustment. This kind of adjustment period is normal from the perspective of manufacturers. We judge that the construction machinery industry will start to build a bottom and stabilize this yearused excavator for sale used excavator for sale

　　The person said that from the perspective of the operating rate of 12 types of construction machinery equipment, there was a significant decline in both the previous year and last year. This year, it is gradually improving, and both year-on-year and month on month are bottoming out and stabilizing. However, there is still a certain distance between the overall operating rate and the peak operating rate.used excavator for sale used excavator for saleused excavator for sale

　　Although there are some positive signs in the industry at present, judging the turning point of construction machinery cannot simply look at a time period or a type of product. For this round of domestic industry cycle, we optimistically expect it to stabilize by the end of 2024 or early 2025, with 2025 possibly being the turning point and 2026 being the turning point

　　It can be seen that the time for this round of cycle adjustment may be longer than we expected. However, from an industry perspective, structural opportunities still exist in the construction machinery industry. There is still considerable room for growth in segmented fields such as application scenarios. With favorable factors such as accelerated penetration of electrification and service-oriented transformation, the industry is expected to experience marginal improvement, stabilization, and recovery. Among them, it further tests the determination and ability of industry enterprises to accurately recognize changes, scientifically adapt, actively seek changes, adhere to long-term principles, and achieve sustainable development in the process of cyclical adjustmentused excavator for sale used excavator for sale

　　The current situation of the mechanical processing industryused excavator for sale used excavator for sale

　　Industry scale and growth trend: As of the end of June 2024, the number of enterprises above designated size in the machinery industry reached 130000, an increase of 11000 from the previous year, accounting for 25.8% of the national industry. The total assets reached 37.6 trillion yuan, a year-on-year increase of 6.8%, accounting for 21.8% of the country's industrial output.used excavator for sale used excavator for sale

　　Main industry performance:

　　Automotive industry: The production and sales of automobiles reached 13.891 million and 14.047 million respectively, with year-on-year growth of 4.9% and 6.1%, respectively; The production and sales of new energy vehicles reached 4.929 million and 4.944 million respectively, an increase of 30.1% and 32.0% year-on-year.

　　Electrical equipment: Driven by the construction of clean energy and smart grids, the production of electrical equipment continues to be high, with a year-on-year increase of 14.4% in the output of generator sets and 17.8% in the output of solar cells.used excavator for sale used excavator for sale

　　Processing equipment: The acceleration of equipment investment has driven the growth of processing equipment, with metal cutting machine tool production increasing by 5.7% year-on-year and industrial robot production increasing by 9.6% year-on-year.

　　Market demand and competitive situation:used excavator for saleused excavator for sale

　　Market demand: The overall market demand in the mechanical processing industry is stable, but the profit growth rate has declined. The production of pumps, fans, compressors, valves, gas separation and liquefaction equipment in the general machinery industry has maintained growth, but the overall profit growth rate has declined, mainly due to insufficient market demand and fierce price competition.used excavator for sale used excavator for saleused excavator for sale

　　Competitive situation: The mechanical processing industry is fiercely competitive, and enterprises need to enhance their competitiveness by improving their technological level, expanding their business areas, and strengthening brand building.used excavator for sale used excavator for sale

　　Technological development trend:used excavator for saleused excavator for sale

　　Automation and numerical control technology: With the rise in labor costs, mechanical processing enterprises have increased their investment in automation equipment and numerical control technology to improve production efficiency and processing accuracy, and reduce labor costs.used excavator for sale

　　Green Manufacturing: The increasing awareness of environmental protection has made green manufacturing mainstream, and the mechanical processing industry is also shifting towards more environmentally friendly production methods.used excavator for sale used excavator for saleused excavator for sale

　　In summary, the mechanical processing industry continues to expand in scale, with overall market demand remaining stable, but profit growth rates have declined. The impact of technological progress and changes in market demand on the industry is significant, and enterprises need to respond to challenges through technological innovation and market expansion.used excavator for sale

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