Robust forecast to China construction machinery

Robust forecast to China construction machinery

Demand for construction machinery in China is forecast to increase +6.2% per year to reach CNY 387 billion (US$ 61 billion) by 2015, according to research company Freedonia.
Hongxing has launched its second generation of compact horizontal s (HSI), and the company said that the CI511/512 crusher combined the ability to configure one base crusher into either a or a secondary configuration.
But while this is a robust forecast, it is nevertheless a far cry from the +29% growth seen in the Chinese equipment market between 2005 and 2010. "You cannot beta test your machines with customers anymore," says Mr Kulawik, The customer is not prepared to be a pioneer anymore, they will not tolerate downtime they want immediate efficiency."
The new machines must have succeeded in generating that confidence as Palfinger has substantial pre-orders for each: over 50 units for the P210 BK and 40 for the P300 KS.
Similarly, sales of loaders are expected to grow +5.9% year-on-year between 2010 and 2015 to reach CNY 71.5 billion (US$ 11 billion) - a slowdown compared to the +15.6% annual growth recorded between 2005 and 2010. Freedonia said the deceleration in growth was down to a moderating outlook for the economy in China as a whole, resulting in a slowdown in construction investment.
Nevertheless, infrastructure development is forecast to be the driving force behind construction sales for the five years to 2015. Hongxing said the new HSI crusher possessed a revolutionary chamber design resulting in greater reduction ratios. It claimed the crusher was able to produce products with two curtains, while competitors required three-curtain to produce the same.
Excavators and cranes are the most popular construction machines in China, and sales are expected to increase +6.2% annually between 2010 and 2015 to reach CNY 232 billion (US$ 36 billion).
This compares to growth of +38.5% between 2005 and 2010, when the market for this equipment jumped from CNY 33.7 billion (US$ 5.3 billion) to CNY 172 billion (US$ 27 billion).
Sales of mixers and related equipment are expected to grow +6.2% per year in the five years to 2015 to reach CNY 30.5 billion (US$ 4.8 billion), compared to +26.4% annual growth between 2005 and 2010, while rollers and related equipment are forecast to grow +5.8% per year in the five years to 2015 to CNY 11.8 billion (US$ 1.8 billion), compared to +16.2% annual growth in the five years to 2010.