The implementation of a series of stable investment policies has allowed the construction machinery industry to maintain a high boom. The reporter recently learned from many aspects that sales of excavators in July increased by more than 40% year-on-year, and market demand will maintain growth in the second half of the year.
A grassroots survey conducted by CME Construction Machinery Network shows that sales of excavators (including exports) in July 2020 reached 17,500 units, a year-on-year growth rate of about 42%. Among them, 15,200 units in the domestic market, a year-on-year growth rate of about 49%; about 2,300 units in the export market, a year-on-year growth rate of about 7%.
Guojin Securities believes that the current industry’s core component manufacturers have achieved a year-on-year growth rate of more than 70% in June and July. Combined with the inventory consumption of OEMs, it is initially expected that excavator sales in July will increase by more than 60% year-on-year. Sales of excavators are expected to approach 300,000 units, and the annual sales growth rate is expected to exceed 25%.
Excavators are indispensable equipment for infrastructure construction. To a certain extent, the production and sales of excavators are the "barometer" of infrastructure investment, and it is also one of the important perspectives for observing the operating status of the economy.
Qi Jun, chairman of the China Construction Machinery Industry Association, said: "In the first half of this year, due to the poor availability of funds in various localities, the overall operating rate of infrastructure construction across the country was insufficient, and the operating rate of construction machinery stock was not high."
"In order to hedge against the impact of the epidemic on the economy, the government has increased investment and effectively boosted the demand for construction machinery. China's construction machinery industry achieved growth against the trend in the second quarter," said Qi Jun.
With the intensive start of infrastructure projects in various regions in the second half of the year, the construction machinery market will maintain growth.
As of mid-July, the 3.75 trillion yuan of new local government special bonds approved by the National People's Congress had been issued 2.24 trillion yuan, with expenditures of 1.9 trillion yuan. About 1.5 trillion yuan of special bonds were to be issued, of which more than 80% of special bonds were invested in transportation Three major areas including infrastructure.
The report released by Kearney Management Consulting Company shows that the demand brought by the new infrastructure may reshape the product layout of the construction machinery industry. The construction of small projects in cities, such as new energy charging piles, 5G base station construction, etc., is expected to boost the demand for small and micro excavators.
"According to the growth momentum of excavator sales, in the future, the entire construction machinery industry and infrastructure construction will be in a good state." An insider in the construction machinery industry said.
