Recently, Qi Jun, president of the China Construction Machinery Industry Association, delivered a speech on the industry resumption of production and industry development situation at the video conference of the branch of the association.
1. Industry resumption and production
According to the monitoring statistics of the association during the epidemic situation:
Of the 1,590 industry enterprises contacted by the association so far, the number of starts has reached 1,464 and the rate of start has reached 92.07%;
The number of employees is 593,968, and the number of reworked workers is 412,972, accounting for 69.5%.
The backbone enterprises in the industry basically achieved 100% resumption of work, and the resumption rate of enterprises above the designated size was above 95%, followed by small and micro enterprises.
2. Product sales
In terms of product sales, among the 12 types of industry products counted by the association:
The positive growth in January was truck cranes, truck-mounted cranes, elevating work platforms, aerial work vehicles, zero-growth motor graders, and the other seven products had negative growth;
Only the grader increased by 3.7% in February;
Products that are growing in March include excavators, truck-mounted cranes, industrial vehicles, elevating work platforms, and aerial work vehicles.
As of the end of March, 12 types of products fell by an average of 14.1% year-on-year.
From January to March, the operating income of key contacted companies fell by 12.3%. It is worth noting that the total profits of the 12 key contacted companies dropped significantly, a year-on-year decrease of 51.8%, accounts receivable increased by 12.4%, and inventories increased by 15.2%; The magnitude of the decline was as of January-March. The total import and export trade fell by 18.9% year-on-year, imports fell by 25% year-on-year, and exports fell by 17.6% year-on-year. Especially in March, China's export of construction machinery was 1.913 billion yuan, down 13.3% year-on-year; imports of 310 million yuan, down 24.8% year-on-year.
Affected by the epidemic, it is expected that the decline in imports will continue this year, and the rebound in exports will be under pressure.
Qi Jun said that the current sales situation of the domestic construction machinery industry in the first half of the year is still unclear, but judging from the situation in previous years, the operating income of construction machinery in the second quarter mainly relied on new orders. The growth of new orders for enterprises is relatively optimistic. Based on the increased efforts of the national and local governments on the resumption of production and production of enterprises and construction projects, the overall situation in the second quarter is expected to be better than the first quarter, and the sales situation in the first half of the year will show a trend of low before high.
3. How to watch the price increase
Since April 10, the prices of earthmoving machinery, cranes and other products in domestic construction machinery products have risen to varying degrees. In response to the price increase of products in the industry, Qi Jun said that due to factors such as management costs, technical grades, and quality standards, it is normal for the market to adjust product prices appropriately.
Disagree with some media analysis is caused by difficulties in the supply of spare parts companies affected by the epidemic. It is hoped that all parties in the industry must have correct views and judgments, and do not want people to follow the cloud and not help.
The association will condemn and oppose malicious conduct of price competition and disruption of normal market order.
4. Industry development trends throughout the year
Regarding the market situation of the construction machinery industry this year, Qi Jun said that with the gradual improvement of the national new coronary pneumonia epidemic situation, from the perspective of the whole year, based on a series of guidelines, policies, regulations and systems issued by the relevant departments of the state and local governments As soon as it is implemented, the production and recovery rate of enterprises in the industrial chain of construction machinery will continue to increase. In particular, companies have high expectations for the country's steady growth measures in the second half of the year. It is expected that domestic market demand will increase compared with the first half of the year.
He predicted that China's construction machinery business revenue in 2020 will increase slightly on the basis of 2019, but the growth rate will be reduced by about 5 percentage points based on the original forecast of 7% to 8%.
