The Development of Construction Machinery

In the first quarter of 2013, due to the large market share and limited stimulation from downstream infrastructure investment, the demand for new construction machinery in the market remained sluggish. To control costs and reduce the capital occupation of finished products, major enterprises still prioritize destocking and organize production relatively cautiously. Taking excavators and loaders as examples, the cumulative production in the first quarter was 38225 and 47199 units respectively, a year-on-year decrease of 32.3% and 14.4%, respectively. The decline in excavator production expanded by 10.7 percentage points compared to the same period last year, while the decline in loader production narrowed by 6.3 percentage points compared to the same period last year.
The past 20 years have been the period of the fastest increase in China's urbanization rate, rising from 27.99% in 1993 to 52.57% in 2012. The rapid increase in urbanization rate has led to a significant increase in demand for construction machinery, which is the biggest background of the golden decade of the domestic construction machinery industry. Experience from the United States, Japan, Brazil, and other countries shows that even after urbanization rates exceed 50%, they can still maintain high-speed growth for nearly 20 years until they exceed 70% before gradually slowing down. Vigorously promoting urbanization has become the governing goal of the new government. The preliminary draft of the "Plan for Promoting Healthy Development of Urbanization 2011-2020" led by the National Development and Reform Commission has been completed and will be released soon. It is highly probable that China's urbanization rate will increase to 70% within the next 20 years.