Excavator Industry Goes Cold, Looking Forward to the Local Investment

Date:10/30/2012 12:07:47

Excavator industry is like the barometer of economic climate. The slump or prosperity of the industry can directly affect fixed investment, local GDP rate, and even the reports of listed company.

In the recent period of time, downturn begins to spread in each session of the excavator industry. It can be seen that the excavator industry is tasting the bitter fruit of excessive production in the process of economy slide through the anxiety of manufacturers, agents and leasing business.

The statistics from the Excavator Industry Branch of China Construction Machinery Association shows that from Jan. to Aug. only 81962 units of domestic excavator are sold, a 38% down year-on-year. Because of the slowdown of real estate and infrastructure construction as well as the intensified competition in excavator market, the rental companies, distributors, agents and producers along the excavator industry chain are all in a difficult situation.

And now, many districts have issued huge investment plan. Local investment craze has just begun. Whether this can bring some warm to the excavator industry this winter?

Li Hongbao, from the Excavator Branch of China Construction Machinery Industry Association, said among the engineering machinery the excavator is most closely related to the development of national economy. The demand for extractor is often the leading indicator of economic boom with a high correlation rate of 80% to the fixed asset investment.

Although the future is not necessarily bright, Li Pingfeng is still full of confidence. In his view, the promotion of output value of industrial estate to 6 trillion Yuan put forward by local government for the next 10 years should bring a lot of opportunities.

A new round of local investment craze appears on stage. It is still a mystery whether it can bring vitality to the extractor industry for sure. But to those looking forward to the end of excavator 'holiday', the little warmth at least brings hope.