With the resumption of work in March, the construction of infrastructure projects in various regions has accelerated, and the replacement of labor and the project's deadline for construction have increased the demand for construction machinery and equipment.
In April, the operating rates of leading companies such as XCMG and Zoomlion were better than the same period in the past few years. Most of the production lines of this year increased by 30-50% from the peak capacity of last year. The operating rate has exceeded the same level in the past few years. At the same time, equipment buyers are also looking forward to the national policy in the second half of the year, which is also the reason for the shortage of construction machinery products.
Affected by the supply of spare parts, the domestic market will be more concentrated to domestic leading companies. Due to the serious foreign epidemic situation, some parts companies in Germany, the United States and Japan have ceased production. There will also be a shortage of important parts for construction machinery (especially engines) in the second quarter. Leading companies are also promoting localization. In the case of shortage of hot demand, pump trucks, excavators and truck cranes have also increased prices by 5-10% in April. The impact of product price increases on gross profit margins will begin to be reflected in the second quarter. Of course, price increases are not a long-term trend.
In April, the sales volume of construction machinery exceeded expectations, and the issuance of special bonds was also significantly advanced. Although the high growth in April was related to the low base in the same period last year, the hot demand after resumption of work was the main reason, and sales and operating rates, specific debt, and accelerated resumption of work were mutually confirmed. Generally, the construction period of infrastructure projects is 2-3 years. It is predicted that the construction machinery industry will maintain a growth of 20-30% this year, and the performance in the second quarter will be greatly improved compared with the first quarter.
