In the early 1990s, China mainly relied on government investment to drive economic growth and promote economic development, with infrastructure construction investment accounting for a significant proportion at that time. For a long time thereafter, although the source of investment funds continued to change, the proportion of infrastructure construction remained relatively stable. With the deepening of the socialist market economy, the demand for personal housing has become increasingly urgent, and the demand for real estate investment continues to be strong. The government has had to introduce policies to curb the overheating of real estate. To sum up, investment in real estate and infrastructure has become an important force to promote fixed assets investment, which has strongly stimulated the demand for construction machinery.

The revenue of the construction machinery industry is expected to exceed 700 billion yuan in 2020

The construction machinery industry in China developed rapidly from 2009 to 2013 and reached its first peak of 566.3 billion yuan; Subsequently, a 5-year period of decline began, and in 2019, a small peak reappeared. According to the statistics and summary of the China Construction Machinery Industry Association, after deducting incomparable factors, duplicate data, and non construction machinery industry revenue, the entire industry achieved a revenue of 668.1 billion yuan in 2019, an increase of 12% compared to 2018.

According to data released by the China Construction Machinery Industry Association in September 2020, 12 key construction machinery enterprises in China achieved sales revenue of 235.6 billion yuan, a year-on-year increase of 17.3%, and the industry's sales revenue was about 400 billion yuan; It is expected that the industry's revenue growth will reach 7% to 8% in 2020. According to the relevant data and development status of the association, it is predicted that the total revenue of China's construction machinery industry will reach around 714.9 billion yuan in 2020.

Sales of construction machinery products maintain growth in 2020

In 2019, we sold 15462 truck mounted cranes, a year-on-year increase of 9.78%, 2290 crawler cranes, a year-on-year increase of 21.9%, and 123000 loaders, a year-on-year increase of 4.04%; Sales of 5807 bulldozers, a year-on-year decrease of 23.6%, 16978 road rollers, a year-on-year decrease of 7.61%, 4348 graders, a year-on-year decrease of 17.41%, and 608300 forklifts, a year-on-year increase of 1.86%.

According to industry statistics from the China Construction Machinery Industry Association, the 25 host manufacturing enterprises included in the statistics from January to June 2020 sold a total of 170425 mining machinery products, a year-on-year increase of 24.2%. The sales volume in the domestic market was 155893 units, a year-on-year increase of 24.8%. The export sales volume was 14532 units, a year-on-year increase of 17.8%. From January to June 2020, a total of 66823 types of loaders were sold, a year-on-year increase of 0.4%. Among them, 63058 loaders of 3 tons and above were sold, a year-on-year increase of 1.06%. The total sales volume in the Chinese domestic market was 55639 units, a year-on-year increase of 3.17%; Export sales of 11184 units decreased by 11.4% year-on-year.

Note: Loader and excavator data as of June 2020, paver data as of May 2020, and other product data as of 2020

Against the backdrop of the epidemic, the import and export of construction machinery products have declined in 2020

According to customs data, the import and export trade volume of China's construction machinery from January to June 2020 was 11.575 billion US dollars, a year-on-year decrease of 18.6%. Among them, the import amount was 1.845 billion US dollars, a year-on-year decrease of 18%; The export amount was 9.73 billion US dollars, a year-on-year decrease of 18.7%.

In the first half of 2017 to 2020, China exported the largest number of forklifts, far exceeding other categories of construction machinery and equipment. In the first half of 2020, China exported a total of 5.993 billion US dollars, a year-on-year decrease of 20.5%, accounting for 61% of the total export volume; The export of spare parts reached 3.797 billion US dollars, a year-on-year decrease of 15.8%, accounting for 39% of the total export volume. The main reasons for the decrease in export volume from January to June include: components, forklifts, loaders, tunnel boring machines, and non highway dump trucks. The main reasons for the increase in export volume include crawler excavators, 100 ton or more all terrain truck cranes, pavers, and asphalt mixing equipment.

Note: The number of forklifts in 2020 is the export value of Q1 in 2020.

Product structure of the construction machinery industry in 2020: excavators occupy an absolute mainstream position

China has a wide variety of construction machinery and is one of the countries with the most complete product categories and varieties of construction machinery worldwide. It has 20 major categories, 109 groups, 450 models, 1090 series, and tens of thousands of product equipment models. Because China has a complete range of engineering machinery categories and outstanding advantages in serialization and complete sets, it provides engineering machinery equipment support for the national economic construction.

From the perspective of market structure, excavators, cranes, road rollers, and bulldozers, four commonly used engineering equipment, occupy the vast majority of the market share in China's engineering equipment market. Among them, excavators are the star products in engineering machinery, occupying an absolute mainstream position in the market. In 2019, their sales accounted for 57.84%; Next is the loader, accounting for 30.34%.