Talk about construction machinery industry: the bottom of the quagmire or will turn for the better
A thousand sails pass by the side, the million tree head of the spring, despite the rapid growth in recent years, the development of China's construction machinery market has been stagnant, but now because of the needs of the international market, the domestic government support, so that we seem to see the construction machinery to meet growth.
Domestic market demand continued to shrink year on year in 2014
Real estate development investment in 2009 had a growth rate of repair, but then began to decline year by year, 2014 new housing construction area has been accumulated year-on-year negative growth, although close to the end of negative growth in the narrow but not positive. In addition to real estate, the demand for construction machinery in larger areas of road, railway construction, water conservancy, electricity, large-scale industrial manufacturing projects. In addition to a few hot spots (such as railway construction in recent years), overall demand will tend to be stable, accompanied by the growth center down.
In 2014, the international market, Europe stabilized, North America turned for the better
The construction data of EU 27 countries can be seen, since 1994, the EU regional construction output basically maintained in the 0-5% year-on-year growth interval, negative growth in the financial crisis in 2008, after several times, now maintained a slight increase in the state. After 2006-2011 years of decline in construction spending, the United States began to rebound in the second half of 2011. Up to now, the United States monthly construction expenditure annual data is still in the rising trend, pulling the demand for construction machinery.
The Chinese government's internal and external policies in 2015 helped the construction machinery industry
At present, the overall growth of China's economy has encountered the plight of the transition period, the government in 2014 again started large-scale rail transport infrastructure construction. In 2014, these projects will be launched in 2015 without exception, then this round of equipment procurement will stimulate domestic demand.
In 2014, the Chinese government announced a $40 billion fund to establish the Silk Road fund. It will provide financing support for the "The Belt and Road along the country's infrastructure construction, resources development, industry cooperation and other related projects. All the countries along the way still have a lot of space in road construction, port construction and power facilities construction. The Chinese government's policy of promoting infrastructure along the way will really boost the demand for construction machinery. If it can be tied up with the construction company, the equipment companies will benefit from it.
Construction machinery industry in 2015 or usher in a favorable turn
Since 2011, the local enterprises in China's construction machinery industry have been suffering from debt risk caused by aggressive credit sales, and the downstream demand has begun to shrink after excessive stimulation, and the industry has fallen into a trough. However, in the context of a turnaround in the international market and the effectiveness of the Chinese government's internal and external stimulus policies in 2015, the construction machinery industry in China, where credit sales risk exposure is shrinking, will usher in a turning point. Liugong (000528), XCMG machinery (000425), Sany (600031), ZOOMLION (000157) are recommended for industrial layout.
I believe, China engineering machinery out of the shadows as a state, but with the implementation of international strategy, China engineering machinery will usher in a broader market and development opportunities is more complex, from the "vision Chinese manufacturing" to "create China" will no longer distant. Correctly doing the post market business and dealing with the customer relationship will play a role in deepening the customer relationship, stabilizing the mature market and strengthening the awareness of regional brands.
