CHINESE CONSTRUCTION EQUIPMENT MARKETS: A REVIEW OF 2016 AND A FORECAST TO 2021
Off-Highway Research's Annual Reviews are summaries of construction sold by product type and by country looking at the last five year's sales data and looking forward for the next five years.
Typical coverage includes: Country Analyses (fifteen European countries), Equipment Analyses (fifteen product types), Production Analyses and International Prespectives.
The market for construction equipment in China, following the dramatic decline over the last four years, finally bottomed out in 2016 with a year-on-year growth of one per cent. The gain might have been small, but it is very significant in that it is believed that the corner has now been turned and the industry will start to expand to a limited range.
Although the first half of 2016 showed that demand continued to fall, a recovery began in the third quarter as a result of the massive investments that had been made at the beginning of the year. While the investment boom had slowed by the end of the year, the input of a large number of new projects with improved rates of funding resulted in the growth of construction activity, and there was a consequential increase in the utilisation of equipment. Very importantly, there was a return in confidence of owners to buy new machinery in the expectation of a further recovery in market fortunes.
Although there have been criticisms about the accelerated expansion of investment, warning of the adverse influence on the continuing campaign to reduce excessive capacity and reform the economic structure, there are increased concerns about the continued downturn of the national economy that is undergoing structural reform. In fact, many new projects have been approved and launched since 2015, and with directives from the top tier of government and a relaxed money supply, ongoing construction activity was boosted in 2016, the first year of the 13th Five-Year Plan.