Under the influence of the epidemic, increasing investment in infrastructure is an effective and rapid way to respond to the economic downturn, which is conducive to increasing demand for construction machinery products and is expected to extend the industry's current boom cycle.
Domestic construction machinery companies have a global competitive advantage. The Chinese companies in the "2021 Global Top 50 Construction Machinery Manufacturers List" ranked first with total sales of 50.733 billion US dollars. At the same time, the gap between domestic brands and foreign brands has been narrowing, and the market share of domestic companies has been increasing. On May 31, Sany Heavy Industry announced that its global sales of excavators topped the list in the world. According to data from Off-Highway Research, a research institution, Sany sold 98,705 excavators in 2020, occupying 15% of the global excavator market, and won the world's first sales champion.
The rise in global infrastructure is good for construction machinery.
U.S. President Biden will propose on Friday the fiscal year 2022 budget expenditure of 6 trillion US dollars, the funds will be used for infrastructure, education, etc., to increase the total expenditure to 8.2 trillion US dollars by 2031. The loose monetary policy of the US government stimulates local infrastructure construction. At the same time, the currency will flock to the world, driving the resonance of global infrastructure construction, which is beneficial to the export of construction machinery.
In the domestic market, it is expected that the second half of the year is expected to usher in the peak season. China’s Belt and Road Initiative will further benefit domestic construction machinery. The Ministry of Commerce announced on the 27th that my country’s investment in countries along the Belt and Road increased by 14% in the previous April. Concentrated in the fields of transportation and power engineering, there were 242 newly-signed foreign contracted projects with a value of more than 50 million US dollars, an increase of 12 from the same period last year, totaling 61.04 billion US dollars, accounting for 85.4% of the total newly signed contracts.
Under the loose monetary policy of the United States, investment enthusiasm on a global scale will increase significantly. It is expected that the export of construction machinery will continue to grow at a high speed, which is good for the leading Chinese construction machinery companies to promote their internationalization strategy.
