China Engineering Machinery Industry Market Monitoring Monthly Report

The overall sales volume of China’s construction machinery industry kept pessimistic in October 2011. Among which, the sales volume of excavator with a period-to-period decrease of 2.41% and a year-on-year decrease of 29.92%, which was the max in current 6 months, and it mainly due to the relatively high base in the same period of last year; the sales volume of loader with a period-on-period decrease of 6.16%, a decline after the growth in two months ago, and a year-on-year growth of 10.81%, a continuous increase since 6 months ago; that of bulldozer with a period-on-period decrease of 8.33% which was the sixth negative growth in current seven months, and a year-on-year decrease of 21.34% which was the continuous sixth negative growth; that of the road roller with the continuous sixth period-on-period decrease of 16.92%, and a year-on-year decrease of 27.79% (the average month-on-month decrease in current four month was about 25%).

Influencing by government’s macro-control policy in 2011, the credit squeeze leaded to a slow-down engineering progress and a delay for some projects; influencing by the credit squeeze policy, the construction machinery terminal users reduced their purchase costs and demand, which resulted in a constant decline to the growth of China’s construction machinery industry since April 2011. By the end of October, the sales volume of China’s construction machinery industry kept a decrease.

In the Tianjin, Inner Mongolia, Jiangsu and Shandong economic trend forum chaired by Wen Jiabao on October 24^th, 2011, some respects were proposed as follows: the proper policy adjustment was proposed under the circumstance of maintaining the overall macro policy, which reflected the credit control would decline a bit while the credit scale would enlarge in the near future; the state key and continued projects would be moved forward steadily; the construction of affordable houses would be speeded up. Therefore, Forward predicts that the market demand of China’s construction machinery industry will be picking up and the sales volume will be increased.

Moreover, from a long term view, with the coming construction peak of electrical power, petrochemical, steel, and transport infrastructure, large tonnage crawler crane will with a strong market demand and optimistic prospect.

Consequently, this report will analyze information monthly. We will research and then come to the conclusion of some advanced development models for managers’ reference according to the latest industry development trend, and strategies and strategy adjustments of relevant corporations.

This report mainly focuses on six parts: firstly, by analyzing the latest economic environment, investment/financing environment, and policy environment of the industry to help corporations to handle the macro development trend, timely policy trend, bank credit trend, and clear the market investment/development environment; secondly, analysis on abundant detailed industry data, which covers from production-and-marketing analysis and export analysis of the whole market, to a detailed analysis of four market segmentation (excavator, loader, crane, and road roller); thirdly, detailed analysis on industry development trend, which includes development condition of construction machinery at home and abroad, project financing, new product R&D, etc.; fourthly, some major relevant industries are included in order to provide detailed analysis on relevant industries’ market: shipbuilding industry, steel industry, real estate industry, railway construction industry, road construction industry, affordable housing industry, and water conservancy and ports construction industry; fifthly, by tracking and analyzing investment and competition trend of domestic well-known construction machinery enterprises (including monthly business data, production and marketing data, project construction condition, and strategy and cooperation condition) to help enterprises keep close to the market competition; lastly, basing on mass industry data, we provide some practical management strategies and suggestions for construction machinery enterprises.

This report aims to constantly provide corporations with strategic references objectively by monitoring and analyzing a large sum of firsthand market data. It will enable corporations to fully handle the latest industry information, judge the market competitive environment, and adjust management and strategies in time according to monthly latest trend.

Qianzhan Busniness Information Co., Ltd. Industry Research College

Monitoring Analysis Team of Construction Machinery Industry