Construction machinery industry will continue to grow fast since 2019.

Construction machinery industry will continue to grow fast since 2019

Recently, LvYing, Deputy Secretary-General of China Construction Machinery Industry Association, said that the overall operation of the construction machinery industry in 2018 is very good, and it is expected to maintain its growth momentum in 2019. LvYing said that in 2018, the operation of the construction machinery industry can be summarized simply by the words "Too Hot".

Due to the low operating base in 2016, the years of 2017 and 2018 showed a very high growth. In 2017, the total number of equipment production in the whole industry increased by 45.7%, and from January to November 2018, it increased by 27.2%. From January to November 2018, the industry's operating income increased by 12% year-on-year, exceeding the target of 20% year-on-year growth of 2018, reaching the highest level in history. The products with larger increase are mainly concentrated in excavators and cranes.

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Analysis of the main reasons for the rapid growth in the past two years, Deputy Secretary-General Lv summarized the following points:

(1) Natural growth, that is, the growth of the quantity of goods, the export products also increased year-on-year.

(2) Current user field is in the period of inventory update. Some equipments has expired and needs to be replaced with new equipments. This cycle will last for about 3-5 years.

(3) Driven by relevant national policy projects.

(4) Upgrading of industrial fields in the user sector will lead to the upgrading of construction machinery, and the acquisition of equipment with higher technical content.

In 2019, the construction machinery industry will continue these major growth points, which is expected to increase by 10% year-on-year, slightly lower than 2018.