Machinery industry recovery is easy to completely reverse difficulties

With a heavy stride, China's construction machinery industry has come to 2013. In the context of macroeconomic stabilization and recovery, urbanization is ready, real estate has bottomed out, and infrastructure construction such as rail transit has entered a large-scale construction period, the construction machinery industry is expected to Recovery, but this year is still difficult to get out of the trough.

Industry experts said that in 2013, the overall situation of China's heavy machinery and equipment manufacturing industry is still grim, to accelerate the transformation and upgrading, support for independent innovation, this is the long-term strategy for domestic construction machinery companies seeking development.

“Demand weakness is the main reason for the growth of the growth rate of the production and sales of the machinery industry last year.” Cai Weici, executive vice president of the China Federation of Machinery Industry believes that the growth rate of infrastructure investment in real estate, highways and railways as a whole declined in 2012. At the same time, the global economy continues to decline. Under this background, the construction machinery industry entered the winter, with the exception of concrete machinery, the sales of major types of other construction machinery all fell sharply throughout the year. In 2012, sales of excavators fell by 35%, loaders fell by 29.7%, cranes fell by 35%, and bulldozers fell by 22%.

Last year, the market demand for machinery products was weak. Among the main products, although the output of most varieties kept growing, the number of products with increased production had decreased compared with the previous year. Of the 120 major mechanical products included in express statistics, there are 43 products with a decline in output, accounting for 35.83% of the total, and one-third of the decline in product output is rare in recent years.

Last year, the growth rate of the economic benefits of the machinery industry fell sharply, and the decline rate greatly exceeded production and sales. Total profit from January to December totaled 1.23 trillion yuan, up only 5.18% year-on-year, and the growth rate was 15.96% lower than the same period of the previous year; the company's loss was 11.25%, up 2.78 percentage points from the same period of last year; losses of loss-making enterprises were On the basis of the sharp increase in the previous year, it increased by 63.24%.

The foreign trade situation is grim, and the growth rate has fallen sharply. In 2012, the total import and export volume of the machinery industry reached 647.2 billion U.S. dollars, an increase of only 2.54 percent year-on-year, and the growth rate dropped by 20.3 percentage points from the previous year. In 2012, the construction machinery industry was hard-working and helpless. The slowdown of macroeconomic growth, the continuous shrinkage of downstream demand, and overcapacity have caused many companies in the industry to become overwhelmed. Nearly a quarter of the company’s losses last year.

However, it is gratifying to note that from the fourth quarter of 2012, the year-on-year sales of excavators, cranes, and bulldozers have significantly improved, and the industry has begun to recover.

“In 2013, the growth rate of the production and sales of the machinery industry is expected to be around 12%, the profit growth rate will be around 8%, and the export growth rate will be around 8%.” Cai Weici expressed cautious optimism about the industry-wide situation this year.

Cai Weici said that this year, there are two positive factors that are very favorable to the development of the industry. First, the macroeconomic situation began to pick up mildly. It is expected that the growth of the domestic consumer market this year is expected to remain stable, and investment growth will recover. The domestic market is also expected to show a mild warming trend.

Second, the policy environment is conducive to the development of the machinery industry. The Central Economic Work Conference clarified the economic policy tone of “stability for progress” and released the monetary policy to appropriately expand the scale of social financing, maintain a moderate increase in loans, and effectively reduce the financing costs of the development of the real economy, which are favorable to the development of the real economy. Supporting two strategic emerging industries, including "high-end equipment manufacturing" and "new energy vehicles," industrial policies for the "12th Five-Year Development Plan for Mechanical Basic Parts, Basic Manufacturing Processes, and Basic Materials Industries" have been implemented one after another for the machinery industry. Development provides a favorable policy environment.

In terms of real estate, although the regulation and control policies are still continuing, with new housing sales continuing to pick up, the growth rate of new housing starts in 2013 is expected to turn positive.