Is the turning point of the domestic market for construction machinery approaching

Release date 2024-11-21 15:59:40 Reading 5

　　Is the turning point of the domestic market for construction machinery approaching?

　　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 used excavator for sale used excavator for sale used excavator for sale 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

　　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.

　　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.used excavator for sale Industry insiders believe that the industry is still in a low and fluctuating stage based on this when interviewed.used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　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

　　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.used excavator for sale

　　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.

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　　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.

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　　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 year

　　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.

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　　Although there have been 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 at 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 adjustment.

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　　The construction machinery leasing industry, as an important support for building and infrastructure construction, has seen continuous growth in market demand in recent years with the increasing demand for project cycles and cost control awareness. The leasing mode not only helps enterprises reduce the pressure of fixed assets investment, but also provides flexible equipment configuration schemes. However, the construction machinery leasing industry also faces challenges in equipment maintenance, asset management efficiency, and market standardization.

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　　In the future, the development trend of the construction machinery leasing industry will mainly be reflected in the following aspects: firstly, digital transformation, utilizing the Internet of Things and big data technology to achieve real-time monitoring and remote management of equipment status; The second is service upgrade, providing comprehensive leasing services including equipment maintenance and operation training; Thirdly, market integration can be achieved through mergers and acquisitions to enhance industry concentration and optimize resource allocation; The fourth is greening, promoting the use of low emission and high-efficiency construction machinery to reduce its impact on the environment.

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　　The report "Research on the Current Situation and Development Trends of China's Construction Machinery Rental Market (2024-2030)" deeply analyzes the current situation of the construction machinery rental industry, comprehensively sorts out the demand, market size, industry chain structure, and price system of the construction machinery rental market. The report on engineering machinery leasing explores the characteristics of various segmented markets for engineering machinery leasing, looks forward to market prospects and development trends, and makes scientific predictions based on authoritative data. At the same time, the report on engineering machinery leasing also objectively analyzed the brand competition pattern, market concentration, and operational status of key enterprises, pointing out the risks and opportunities faced by the industry. The engineering machinery leasing report aims to provide decision-making support for enterprises, investment companies, and governmentused excavator for sale

departments in the engineering machinery leasing industry. It is an important reference for grasping industry development trends, avoiding risks, and exploring opportunities.

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