The construction machinery industry will surely usher in the "spring" of the revival of all things!

Looking at the world, the aftershocks of the economic crisis are still lingering, and emerging economies represented by it are facing difficulties such as economic downturn. Overall, the domestic construction machinery industry is undoubtedly still in a winter of slow development, but winter will eventually pass. From the perspective of industry development prospects, with a series of national policies and plans to promote economic development, the recovery of related industries, market pull, and the self-improvement and transformation of the construction machinery industry, China's construction machinery industry will surely usher in a "spring" of recovery for all things.

1、 China's construction machinery has a huge scale effect, promoting cost reduction

Although the entire industry is currently operating at a low level, the high-speed development of the construction machinery industry over the years has driven the prosperous development of the parts market, and the huge economies of scale have driven down the operating costs of the entire industry chain. In addition, the generally low labor costs and abundant resources in China's processing and manufacturing industry have greatly reduced the production costs of construction machinery. Compared with developed countries, it still has a significant price advantage.

The market size of construction machinery accessories is huge

2、 Highly cost-effective and popular among developers, with infinite market potential

The global construction machinery market has great potential, and China's construction machinery has great potential in the market. China's construction machinery manufacturing scale and capability are strong, with an advantage in cost-effectiveness, which is more in line with the consumption ability of developing countries. Therefore, the demand for construction machinery from developing countries in the Middle East, Latin America, Southeast Asia, Central Asia, Africa and other regions has been growing, and the market prospects are broad. In the future, as long as we strengthen publicity and provide good marketing services, it is only a matter of time before we open up the market. In addition, from the perspective of the industry itself, a considerable number of construction machinery enterprises in China have the ability to expand overseas and are actively participating in global competition.

3、 The country is increasing infrastructure construction and diversifying efforts to promote the recovery of the construction machinery industry

With the increasing downward pressure on the macro economy, the National Development and Reform Commission's pace of stabilizing growth continues to accelerate. Since the beginning of this year, the National Development and Reform Commission has approved major railway engineering projects multiple times. According to statistics, since May, the total investment in railway projects approved by the National Development and Reform Commission has exceeded 800 billion yuan. In the context of weak foreign trade in the first three quarters, in order to further stabilize growth, the National Development and Reform Commission has once again increased its efforts in the investment field. In October, it approved six railway projects with a total investment of over 270 billion yuan. At the same time, represented by the Beijing Tianjin Hebei region, coastal areas, and western regions, various regions are actively promoting the construction of intercity high-speed railways, subways, highways, and bridges, accelerating the improvement of transportation facilities in different areas, and the investment intensity is equally astonishing. Not only that, but also actively participate in the construction of foreign transportation facilities and play a key role in infrastructure construction. It has been analyzed that the investment scale of infrastructure projects often exceeds tens of billions, which can drive multiple industries such as steel and cement. For the construction machinery industry, it is undoubtedly a huge cake, and its huge role in driving the prosperity of the construction machinery market such as excavation, pavement, and shovel transportation cannot be denied.

4、 China's urbanization continues to develop, and the huge investment in infrastructure increases the demand for construction machinery

At present, the level of urbanization development is relatively low, accounting for only about 47%. Compared with developed countries such as the United States and Japan with urbanization rates of over 90%, there is still a big gap. In order to further enhance the country's comprehensive development strength and narrow the gap with developed countries, it is necessary for China to continue to increase investment in urbanization. The demand and growth rate of construction machinery products are closely related to the scale of capital construction investment, and the prosperity of the industry is also in synchronous proportion to the growth rate of fixed assets investment. Therefore, the acceleration of urbanization will inevitably increase the demand for construction machinery and drive the development of construction machinery. All kinds of earth rock engineering projects, real estate engineering projects, goods storage and handling, and export fixed assets investment will play a direct role in the development of the construction machinery industry.

5、 The real estate foam will gradually disappear, and the housing market will warm up, driving the development of construction machinery

The urban pattern is completely different from developed countries, with high density and highly concentrated population. Once this trend is formed, it is difficult to change. The development of urbanization is closely related to the development of the housing market. China plans to increase the urban population to over 55% by 2020, which will reach 780 million. With an increase of about 100 million people, there will be a demand for housing of 23.6 billion square meters, and an annual rigid demand of 580 million square meters. This will inevitably drive up housing prices to a certain extent. Therefore, cities with population growth will find it difficult for housing prices to fall back. Due to the long-term high supply of RMB currency, housing prices can only continue to rise. It is predicted that the real estate foam will gradually disappear in 2016, the housing market will recover, and the increase of engineering construction projects will directly promote the grand plan of construction machinery.

6、 There is great potential for the development of the aftermarket, and the second mobile phone drives the remanufacturing of construction machinery

It has been proposed that the construction machinery industry has entered the era of service competition, and the quality of service is crucial to the survival of enterprises. Some foreign construction machinery enterprises such as Germany, Belgium, Japan, and the United States all have a strong and complete industrial chain, and have built good profit models in marketing, service, and after-sales, forming sustainable development advantages, which is worth learning from. However, currently in China, the post market of construction machinery has not received enough attention from enterprises. Therefore, facing fierce competition in foreign markets and limited domestic market capacity, shifting to the after-sales service market is a good strategy. This requires numerous brands in the domestic aftermarket to self regulate and strengthen their management under the leadership of industry associations, change the previous spontaneous and loose state of the market, and achieve standardization and stability in network construction. At the same time, it is necessary to improve the post market service system, enhance the technical level of after-sales service personnel, accelerate response timeliness, and enhance competitiveness. On the other hand, with the booming auctions of second-hand mobile phones in various regions, the second-hand mobile phone market has gradually begun to develop and has huge profits. Standardizing the order of the second-hand mobile phone market will provide good raw material support for downstream remanufacturing industries, solve the embarrassing situation of the construction machinery remanufacturing industry running out of rice, and further promote the green development of construction machinery.

7、 The National Revitalization Economic Development Plan Supports the Development of Construction Machinery

In order to cope with the global economic crisis and promote the rapid and stable development of China's economy, the country has introduced a series of macroeconomic regulation policies, clarified development goals, and stimulated economic development in various regions. To some extent, this has helped the construction machinery to achieve the goal of "going global". The most typical is the "the Belt and Road" strategy that has attracted global attention this year. It is predicted that from 2015 to 2019, the cumulative investment in infrastructure construction of core countries along the "the Belt and Road" will be about $3.26 trillion, and this figure may reach $558 billion in 2015 alone. Based on the empirical data that the value of construction machinery products accounts for 5% of the investment, it will bring a market space of $175 billion for the construction machinery industry. In the future, the "the Belt and Road" and the 13th Five Year Development Plan that has been put on the agenda will help the development of China's construction machinery.

8、 Change of business mode and development of e-commerce with "Internet plus" express train

Starting from the rapid development of the information age and the emergence of new business models, the development and application of e-commerce have become the most extensive and profound revolutionary change in the economic field since the Industrial Revolution. Under the influence of the current business philosophy in the construction machinery industry, vertical e-commerce websites with strong engineering machinery characteristics have begun to emerge. The website aims to establish a third-party platform for resource sharing between upstream and downstream enterprises in the construction machinery industry, including manufacturers, distributors, parts suppliers, users, and research institutions. In the construction machinery industry, manufacturers serve as the link, forming an industry chain consisting of manufacturers, distributors, parts suppliers, maintenance service providers, users, and relevant financial units, which constitutes and promotes the development of e-commerce in the construction machinery industry. The launch of e-commerce platforms has provided convenience for enterprises to better serve users and operate the entire industry, and of course, has also promoted the development of the construction machinery industry.

Chinese construction machinery enterprises have also increased their efforts in technological innovation, focused on market demand, established energy-saving and environmental protection concepts, promoted green manufacturing, achieved transformation and upgrading, and produced new products that meet the market demand and development trends of the new era, striving to occupy the market high ground in technology, quality, and functionality. Through this series of "foreign aid" and "self rescue" measures, it can be foreseen that the snow on the development path of China's construction machinery industry is melting, and in the near future, there will be a "spring breeze greening the south bank of the river".