China Construction Machinery Industry Trends

 China's construction machinery industry has a solid foundation, and driven by national strategies such as the "One Belt, One Road" initiative, this industry has huge development opportunities. According to statistics from the China Construction Machinery Industry Association, the scale of my country's construction machinery market will be 800 billion yuan in 2021, a year-on-year increase of 3.21%. Benefiting from multiple positive effects such as the pull of demand for new and old infrastructure, environmental protection upgrades, equipment replacement, and artificial substitution effects, China's construction machinery industry is currently in an upward development stage.

With the continuous expansion of the scale of infrastructure construction, the sales of internal combustion engines for construction machinery in China have also shown a year-by-year growth trend in recent years. According to statistics from the China Internal Combustion Engine Industry Association, the sales volume of internal combustion engines for construction machinery in my country was 471,700 units in 2016, and 1.1358 million units of internal combustion engines for construction machinery in China in 2021. From 2016 to 2021, the compound growth rate of internal combustion engines for construction machinery sales in China reached 19.21%.

Under the guidance of "Made in China 2025", with the continuous advancement of the supply-side structural reform and the "Belt and Road" construction, the construction machinery industry will continue to accelerate the transformation and upgrading process, change the traditional extensive growth mode, and improve the quality of development. Structural upgrades will generate higher demand for supporting internal combustion engine products, thereby stimulating demand growth for internal combustion unit controllers. At the same time, with the gradual stabilization of the growth rate of infrastructure investment, the arrival of the industry replacement cycle, and the advancement of the “One Belt, One Road” strategy, the incremental export market has been gradually opened up, and the healthy development of the construction machinery industry is expected to continue.

Excavators - Jewel of Construction Machinery Industry

In this era of rapid development, with high-rise buildings everywhere, the role of excavators cannot be underestimated. Not only can it dig up hard rocks, but it can also walk on the ground on rough roads. How does the excavator do it? And what kind of development process?

The invention of the excavator can be traced back to the 19th century, and it has a history of nearly 180 years. The earliest excavators were manual, with a low degree of mechanization. They were powered by human and animal power. The capacity of the bucket was only 0.2 cubic meters. Not to mention time-consuming and labor-intensive, safety was not guaranteed.

After a long period of development, excavators have entered mechanical excavators from manual excavators. At this time, the internal combustion engine and electric motor just appeared, and the excavator no longer relied on traditional manpower, so in 1899, the world's first electric excavator was born. Then what happened to the excavator?

Later, through the continuous research of scientific and technological personnel, the diesel generator was invented, and the relevant personnel applied it to the excavator, using diesel as the power source, no longer limited to electric excavators. Diesel and electric excavators were the first generation of excavators at that time, which was also the development result of the age of steam and electricity.

Due to the high development of industrial technology, in 1951, the Poclain factory in France successfully invented the first hydraulic excavator, and the excavator technology has developed to a new height. The hydraulic technology used in this excavator has also been applied to various machinery such as tractors, which is also the benefit brought to mankind by the industrial revolution.

By the 1950s, excavator technology was still developing, and then crawler-type full-hydraulic excavators and towed full-slewing hydraulic excavators appeared. This kind of excavator is easier to drive and can be used on rough terrain. However, because hydraulic excavators use the hydraulic technology of machine tools and aircraft, there are no hydraulic components specifically for excavators.

This has led to uneven quality of excavators, lack of complete accessories, frequent accidents, excavator failures are also very common, and the lack of professional maintenance personnel makes it difficult to return to the factory. But at this time, at the time of the rapid development of science and technology, the help of excavators is urgently needed, so since the 1960s, excavators have entered the stage of in-depth research and vigorous development.

Various countries are vigorously developing excavator technology, and countless manufacturing plants have emerged as the times require, and the categories of excavators have increased. At the same time, manufacturers are also vigorously producing excavators, and the number has risen linearly. At that time, hydraulic excavators dominated the market, and more than 80% of the excavators on the market were hydraulic excavators, which was also the second innovation of excavator technology.

Today's excavators have become more advanced, combined with electronic technology, so that excavators have the advantages of automation and intelligence. There is a complete set of operating equipment in the cockpit, the control system tends to be perfect, and the quality of the excavator has also been significantly improved. Not only that, the corresponding operators will also undergo professional training, and the manufacturer has a more complete maintenance system for the machine, which greatly guarantees the construction efficiency and the safety of related personnel.

As an indispensable equipment in life, excavator is widely used in various construction sites, and its contribution is indispensable in land development. Many enterprises have deep experience in this aspect. Yibiyuan is an enterprise that focuses on agricultural equipment. They always serve the public with an attitude of excellence, survive with attitude, and develop with quality. Not only that, the company is also developing and prospering in advertising, design, technical consulting, etc., and its ability is beyond doubt.

China's Excavator Sales Growth Rate Turned Positive in July

After a lapse of 14 months, the sales growth rate of excavators in July turned positive for the first time. The recovery of the medium and large excavation market related to infrastructure, real estate and mining industries was relatively slow, and the small excavation recovered better.

Reporters from the Financial Associated Press learned from various interviews that people in the machinery industry are cautious about "the statement of a strong turning point in the second half of the year". After the epidemic factor has subsided, the month-on-month data in July has indeed improved. Under the low base effect, the year-on-year data in the second half of the year will be better. At present, the pulling effect of infrastructure construction is not obvious, and the industry is still in a weak recovery.

However, compared with the fact that the demand-side heavy volume is still not obvious, the cost-side pressure of the construction machinery industry has improved. Wu Jianhua, a construction steel analyst at the Shanghai Steel Union Steel Business Group, told the Financial Associated Press that since mid-April, the epidemic has spread to extreme weather such as gradual prevention and control, the Federal Reserve's interest rate hike, the flood season in the south, and the high temperature in the north. Prices fell quickly.

The base effect weakened, and the sales growth rate in July turned positive

The latest data from China Construction Machinery Industry Association shows that in July 2022, 17,939 excavators were sold, a year-on-year increase of 3.4% and an increase of 14pct from June. Among them, domestic sales were 9,250 units, a year-on-year decrease of 25%, and the rate of decline narrowed by 10pct compared with June; exports were 8,689 units, a year-on-year increase of 73%, an increase of 15pct compared with June.

Specifically, in July 2022, the proportion of small mining sales increased by 9pct, small mining recovered better, followed by large mining, and medium mining recovered slowly. The heavy volume in overseas markets has smoothed out the weak demand in the domestic market. In terms of exports, the export sales volume in July was 8,689 units, a year-on-year increase of 72.8%. It was the fourth highest month-on-year increase in 2022.

"The base number in July last year was relatively low, and the growth of overseas markets is good at present." The relevant person in charge of Zoomlion (000157.SZ) told the Financial Associated Press.

"I haven't felt a significant recovery, and the actual data has improved slowly. It cannot be said that there is a (industry) inflection point. Previously, due to the epidemic, many projects were suspended, but now some projects have started, and the sales data (for excavators in July) will be better. point." An insider from a construction machinery company in Hunan told a reporter from the Financial Associated Press.

Although the proportion of small mining data has increased, the above-mentioned insiders revealed that under the current market conditions, selling small mining is basically not very profitable. Because in many cases, small excavators are sold with medium and large excavators.

A person from the securities department of Hengli Hydraulics (601100.SH), a leading upstream manufacturer, told the Financial Associated Press that the sales data in July was a little better than the same period last year.

The pulling effect of infrastructure is not obvious for the time being, and the weak recovery in the second half of the year is underway

It is understood that from the perspective of increased investment on the demand side, there has been a slight improvement, and the growth rate of investment is still declining. The growth rate of water conservancy, highway, and public infrastructure has rebounded, and investment in other related industries is not ideal, especially the decline in real estate under construction and new construction is still expanding. Industry insiders expect an improvement until Q4 at the earliest.

From the perspective of the market terminal, in the first three weeks of July 2022, the operating hours of market monitoring excavators in the domestic circulation field decreased by 16.55% year-on-year and 9.18% month-on-month. The above-mentioned person from the Hengli Hydraulic Securities Department said, "The main ones related to infrastructure are digging, and the increase in demand is not obvious at present."

An insider from another Hunan construction machinery OEM also told a reporter from the Financial Associated Press, "The improvement of terminal data is relatively slow, and the recovery is not as fast as everyone expected."

It may take time for the demand side to fully recover, but the cost-side improvement is already on the way, and the steel cost of the excavator OEMs accounts for more than 70%. According to the statistics of Shanghai Steel Federation, the overall price of rebar fluctuates widely this year. Last year, the steel price reached a high of 6,200 yuan/ton and a low of 4,500 yuan/ton. The price difference between high and low prices was nearly 1,800 yuan/ton.

As of August 12, the price of rebar futures was 4,189 yuan/ton. Sany Heavy Industry (600031.SH) insiders believe that the price of steel will not be as high as last year, and the profit pressure this year will not be as great as last year, and the industry is expected to pick up quarter by quarter in the second half of the year.

Data show that in July, a total of 3,876 major projects were started nationwide, with a total investment of 2,393.059 billion yuan. Among them, infrastructure projects are still one of the key areas of intensive construction in various places. The research report of Zheshang Securities pointed out that the pulling effect of infrastructure construction is expected to continue to be released in the second half of the year, forming a certain support, and the demand margin in Q3 is expected to improve. Noticeably narrowed. If the sales volume of excavators in August is 20,000 units, it will increase by about 10% year-on-year.

China Machinery Industry Picks up Steadily

Recently, data released by the China Machinery Industry Federation showed that in the first half of the year, China's machinery industry achieved a cumulative operating income of 12.95 trillion yuan, a year-on-year increase of 5.44%, and a total profit of 735.441 billion yuan, a year-on-year decrease of 5.8%.

Chen Bin, executive vice president of the China Machinery Industry Federation, said that it is expected that the economic operation of the machinery industry will recover steadily in the second half of the year. The annual growth rate of industrial added value and revenue will reach 5.5% year-on-year, and the total profit level will be the same as the previous year. Import and export Trade remained generally stable.

Deal with machinery industry downward pressure

Entering the second quarter, under the influence of many unexpected factors, the downward pressure on the machinery industry, which had a good start, suddenly increased. In April and May, the main economic indicators continued to decline sharply, and their operation deviated from the normal track.

In the face of the complex international environment and the arduous task of reform, development and stability, the machinery industry continued to recover steadily, achieved stabilization and recovery in a short period of time, and turned from negative to positive, showing its growth potential and development resilience.

According to data from the National Bureau of Statistics, the added value of the machinery industry in the first half of the year increased by 0.7% year-on-year, although it was still 2.7 and 2.1 percentage points lower than that of the national industry and manufacturing industry, but ended the continuous decline in April and May. In terms of single-month growth rate, the added value of the machinery industry declined by double digits in April, narrowed to less than 3% in May, and rebounded rapidly to an increase of 8.2% in June, which is higher than the national industrial and manufacturing growth rate in the same period. Showing a "V"-shaped rebound, a strong response to downward pressure.

From the perspective of the sub-sectors of the machinery industry, the five major categories of national economic industries mainly involved, the growth rate of added value in the first half of the year increased three times and fell two, and the added value of special equipment, electrical machinery and equipment, and instrumentation manufacturing increased by 4.1% year-on-year, 9.7% and 4.1%, the added value of general equipment and automobile manufacturing decreased by 2.7% and 1.9% respectively.

From the perspective of main products, among the 120 main products monitored by the machinery industry, 79 products have decreased in cumulative output in the first half of the year, accounting for 65.8%; 41 products have increased in output, accounting for 34.2%. The varieties whose production increased in June are nearly half.

It is worth mentioning that in the first half of the year, the total export value of China's machinery industry increased by 10.41% year-on-year. "Under multiple challenges, it is not easy to maintain double-digit growth in exports, which reflects the resilience of enterprises and industrial development." Chen Bin said.

The export performance of products from industries such as automobiles and construction machinery is particularly prominent. Su Zimeng, president of China Construction Machinery Industry Association, said that in the first half of the year, Chinese construction machinery enterprises had a prominent competitive advantage in the international market, and the industry-wide export value reached 19.89 billion US dollars, a year-on-year increase of 32.3%. Among them, January and June both refreshed the highest monthly export record, and June was close to 4 billion US dollars.

Driven by the growth of exports, in the first half of the year, China's machinery industry achieved a trade surplus of US$176.88 billion, a year-on-year increase of 34.4%. "In the first half of the year, the machinery industry's exports to countries along the "Belt and Road" totaled US$157.23 billion, a year-on-year increase of 13.6%." Chen Bin said that the growth of the trade surplus played a positive role in the steady growth of the machinery industry.

Accelerating the pace of innovation and transformation

At the 25th Qingdao International Machine Tool Exhibition held recently, more than 1,000 exhibitors at home and abroad brought their advanced manufacturing technologies and equipment to provide cutting processing, metal forming, digital factories, flexible production lines for the current emerging intelligent manufacturing and other fields And other industries processing and application solutions.

The "high-end, intelligent and green" direction presented at the machine tool exhibition is the mainstream trend of the machinery industry in the future. Since the beginning of this year, a number of Chinese machinery industry enterprises have achieved a new round of catching-up power source and core drive through independent innovation and digital transformation, and have continuously put on the market engineering equipment that has reached the international advanced level. For example, Zoomlion is specially designed for wind power hoisting. The world's largest tonnage all-terrain crane designed; the second-generation pure electric loader independently developed by Liugong has been used for stable construction of fast-track projects, and three unmanned construction machinery products have been unveiled...

The independent innovation and self-reliance at the key technical level have laid the foundation for the survival and development of machinery enterprises. Zhang Xiaolun, Secretary of the Party Committee and Chairman of SINOMACH, said that SINOMACH is striving to cultivate the "chain length" of the modern industrial chain, achieving major breakthroughs in advantageous fields, common technologies and key technologies again and again, and contributing to the realization of high-level scientific and technological self-reliance and self-improvement.

The equipment supply capacity of the machinery industry has continued to improve, and it has also promoted green development and transformation to achieve remarkable results. For example, Sany Group has launched a full range of electric port equipment to help China's port industry achieve a green, ecological and intelligent transformation.

Machinery enterprises are actively innovating and transforming, driving strategic emerging industries to achieve continuous success. Chen Bin introduced that in the first half of the year, the total revenue and profit of the strategic emerging industries of the machinery industry accounted for 79.3% and 76.64% of the total machinery industry, an increase of 3.38% and 2.67% year-on-year respectively. In the first half of the year, the production and sales of new energy vehicles exceeded 2.6 million, a year-on-year increase of 1.2 times.

Favorable factors are released one after another

Different from the obvious increase of pressure from multiple parties in the second quarter, entering the third quarter, the machinery industry is relatively optimistic.

The excavator, known as the "barometer" of the industry, saw its sales growth in July turn positive for the first time after a lapse of 14 months. Among them, the recovery of the medium and large excavation market related to infrastructure, real estate and mining is relatively slow, and the small excavation has recovered better.

Automobile production and sales also increased in July. Despite the low season in the traditional market, driven by the policy of halving the purchase tax and local policies to promote consumption, coupled with the promotion of car companies and dealers, the sales volume of the passenger car market continued to grow rapidly year-on-year.

Looking forward to the second half of the year, Chen Bin said that factors favorable to the operation of the machinery industry are being released one after another. The effectiveness of policies and measures related to stabilizing growth has been further demonstrated. Various regions and departments have introduced many measures to stabilize economic operation, expand domestic demand, promote consumption, and appropriately advance infrastructure investment. At the same time, major projects specified in various plans of the "14th Five-Year Plan" have been started one after another, providing strong support for the steady growth of the machinery industry.

Industry confidence is recovering. The survey shows that most companies have higher expectations for revenue and profits in the second half of the year than in the first half. According to Tianyancha data, as of now, there are more than 1.054 million enterprises related to China's machinery industry, of which 210,000 newly registered enterprises from January to July this year, with an average monthly growth rate of 41%.

In addition, the stabilization and improvement of the automobile industry will play an important supporting role in the smooth operation of the machinery industry. Chen Shihua, deputy secretary-general of the China Automobile Association, analyzed that the auto market continued to maintain steady growth in August. With the arrival of the traditional golden consumption season in the auto market in September, the production and sales of passenger cars will grow rapidly, and the export of new energy vehicles and automobiles will also remain good. Performance.

Chen Bin reminded that the next step needs to pay close attention to the three major pressures. First, the international political and economic situation remains complex and faces multiple risks. Second, the contraction of total domestic market demand and the weak growth momentum of consumption and investment have brought great challenges to the steady growth of the machinery industry. Third, factors such as poor international trade and logistics, and the tightening of the global supply chain situation have made the foreign trade environment of the machinery industry more severe.

Looking at all aspects of the situation, the economic operation of China's machinery industry will gradually recover in the second half of the year, and it is expected that the overall profit level will be the same as the previous year. Chen Bin proposed that the next step should be to accelerate the implementation of the policy of stabilizing growth, aiming at the stuck points and breakpoints of the industrial chain to stabilize the chain and help enterprises to solve difficulties.

Overseas Orders for Construction Machinery Boom

A series of data shows the "ice and fire" in the domestic and foreign construction machinery market.

Recently, according to the statistics of 26 excavator manufacturers by China Construction Machinery Industry Association, in July 2022, 17,939 excavators of various types were sold, a year-on-year increase of 3.42%. However, there were 9,250 domestic units, down 24.9% year-on-year; 8,689 units were exported, up 72.8% year-on-year.

In addition, according to the statistics of 22 loader manufacturers by China Construction Machinery Industry Association, in July 2022, 8,158 loaders of various types were sold, a year-on-year decrease of 6.9%. Among them, 4,802 units were sold in the domestic market, down 17.9% year-on-year; 3,356 units were exported, up 15.2% year-on-year.

What caused the popularity of foreign construction machinery orders, but the poor performance of domestic construction machinery industry orders? The 21st Century Business Herald reporter investigated a number of enterprises in Hunan, a major province of construction machinery. It is understood that due to the continuous decline in orders in the domestic construction machinery market this year, Sany Heavy Industry, Zoomlion, Shanhe Intelligent and other leading construction machinery companies in Hunan have experienced a significant decline in performance.

"Previously, we expected that 2022 would be the most critical year under the influence of the policies of the 14th Five-Year Plan. We did not expect that the industry as a whole would be significantly affected by the epidemic, which would significantly lengthen the economic downturn, which would lead to a peak in the construction machinery industry. There are not a lot of sales orders in the period, and the off-season is even weaker than before." Zhu Jianxin, deputy general manager of Shanhe Intelligent, told the 21st Century Business Herald reporter.

At the same time, construction machinery companies in Hunan have begun to actively explore, from the layout of product lines to improving the stability of products, hoping to usher in a new round of growth opportunities.

Domestic construction machinery orders "downward cycle"

Since April 2021, China's construction machinery industry has entered a downward cycle, and domestic sales of construction machinery have continued to decline.

Hunan, which has leading construction machinery companies such as Sany Heavy Industry, Shanhe Intelligence, Railway Construction Heavy Industry, and Zoomlion, is a major manufacturing province. It is understood that there are more than 400 industrial enterprises above designated size in the construction machinery industry chain in Changsha. In the latest list of the top 50 global construction machinery manufacturers in 2022, four construction machinery enterprises in Changsha, Hunan, including Zoomlion, are on the list, with a combined sales of US$29.195 billion, making it a veritable "capital of construction machinery".

But this year, construction machinery enterprises in Hunan Province generally performed poorly. Among them, Sany Heavy Industry and Zoomlion in July this year's performance forecast for the first half of 2022, their net profit fell by more than 60%. As one of the leading companies, Sunward Intelligence has also been greatly affected. According to Sunward Intelligence's release of the performance forecast for the first half of 2022, it is estimated that the net profit attributable to the parent in the first half of 2022 will be 0-79.7331 million yuan, compared with 531.5537 million yuan in the same period last year. , down 85%-100% over the same period last year.

Hu Junke, a professor at the School of Mechanical and Electrical Engineering of Central South University, said in an interview with a reporter from the 21st Century Business Herald that the situation facing Hunan Construction Machinery as a whole is relatively unoptimistic, mainly from three aspects. First, the advantage of Hunan Construction Machinery is not in excavators, but In recent years, Hunan construction machinery enterprises have been vigorously developing excavator products. After several years of deployment, Hunan excavator enterprises are facing a market decline when they continue to invest in large-scale mass production.

"Secondly, the biggest advantage of Hunan Construction Machinery is concrete machinery. The downturn in the real estate market in the past two years has given a greater impact to the industry. The third is the super equipment for underground engineering, that is, shield machines, which are mainly used in subways. The construction of the subway is a barometer of the macro economy, and cities will only build subways if they have money, and the impact of the epidemic on the macro economy in the past three years is obvious to all, which has also led to a sharp decline in the output of shield machines.” Hu Junke pointed out.

Yuan Zhen, executive secretary-general of Changsha Construction Machinery Industry Association, told the 21st Century Business Herald reporter that in addition to market economic factors, in the first half of 2021, the construction machinery industry has achieved too high growth, especially in March it reached its historical peak , which made the base in the first half of 2021 too high, and was one of the factors that led to the sharp decline in sales orders in the first half of this year compared with the same period last year.

In this context, the self-adjustment of enterprises is particularly important. After years of deep cultivation and development, the Hunan construction machinery industry has been relatively mature. Facing the downward stage of the industry, these companies have expressed that they have a way to deal with it.

Sany Heavy Industry stated in the previous announcement that the company has strengthened the research and development investment of construction machinery products and key components, especially the research and development of digital, electrified and international products and technologies.

In addition to leading enterprises, some small and medium-sized enterprises in the field of construction machinery have also taken corresponding measures when dealing with the downturn of the industry cycle.

Yang Zhenshi, chairman of Wuxin Tunnel Equipment Co., Ltd. located in Changsha Economic and Technological Development Zone, told the 21st Century Business Herald reporter that the company's business is a very subdivided field of construction machinery, and 70%-80% of its orders come from railway construction.

"Faced with the industry downturn, the company is actively exploring new business scenarios. At present, it has planned to expand to the field of water storage, which is a very important part of the national plan. In addition, it will also expand to underground engineering fields such as underground mines and underground grain depots. Expansion, these are all areas supported by the state for construction and development, and there are very broad prospects in the future. In addition, the company is planning to develop overseas markets, and has already carried out system construction for overseas markets." Yang Zhenshi said.

In addition, Yang Zhenshi also said that the company will focus on tunnel equipment, continue to increase scientific research efforts, and innovate to consolidate the existing market.

Yuan Zhen said that, as far as he knows, compared with the last round of the downward cycle of the construction machinery industry, this time Hunan construction machinery enterprises have a deeper understanding of the impact of this round.

As we all know, the development of construction machinery industry is closely related to domestic infrastructure investment. In 2022, China issued a series of policies to stabilize growth. For example, at the executive meeting of the State Council held on June 2, it was deployed to increase the credit line of policy banks by 800 billion yuan to support the growth of infrastructure investment.

"With the support of national policies, the situation in the second half of this year should be better than that in the first half of the year, but we are still cautiously optimistic. Generally speaking, it will take some time for policies and capital transmission to affect the market. Everyone has reached a consensus on the recovery of the construction machinery industry in half a year." Yuan Zhen pointed out.

Zhu Jianxin is still very optimistic about the future market of China's construction machinery. "At this stage, the problem of unbalanced development in China is still obvious, and the construction machinery industry still has a broad market. For example, projects in the major sectors of new infrastructure and 'Tie Gongji' will continue to make efforts in the future. In the field of rural construction, there will be a large number of farmland, water conservancy and other fields that need to achieve intensive and large-scale operation and development. This requires corresponding construction machinery and equipment to implement, and in the future, intelligent and intelligent development must be realized. During this period, every link has room for development, transformation and upgrading of the construction machinery industry."

China Machinery Manufacturers Vigorously Tap Overseas Markets

In fact, in July this year, the overall excavator orders "turned positive" for the first time this year, and the decline in loader orders was also significantly reduced compared to the first half of the year.

Behind this, it is related to the booming overseas construction machinery orders in the first half of this year, the overseas sales of many construction machinery companies have achieved substantial growth, and some overseas regions even experienced shortages.

In the first half of this year, the total export value of China's construction machinery industry reached 19.89 billion US dollars, a year-on-year increase of 32.3%. Exports have achieved continuous growth for more than 50 consecutive months.

"From the perspective of the market, not all construction machinery categories are declining. For example, some new energy products, aerial work machinery and other products are all growing against the trend. In addition, construction machinery companies in Hunan Province have diversified For example, Sany Heavy Industry is promoting the industrial Internet, etc. In addition, everyone is actively expanding the export market of construction machinery.” Yuan Zhen said.

This is indeed the case. In the interview reply of CRCC to the 21st Century Business Herald reporter, CRCC pointed out that since the implementation of the overseas priority strategy, the amount of newly signed overseas contracts and operating performance have been in a continuous growth trend. In 2020, due to the epidemic, overseas business will be affected to a certain extent. In 2021, gradually recover. In the first half of this year, the value of newly signed overseas contracts achieved a year-on-year increase of 126.25%.

"The huge recovery space brought about by the gradual stabilization of the global epidemic has boosted the demand for infrastructure investment and construction, and provided room for the growth of overseas business." CRCC pointed out, "At present, our overseas product market share has further expanded, and we are fully promoting shield tunneling. Machines and other tunnel equipment realize 'China's equipment, the world's equipment'."

Zhu Jianxin also said that Sunward's overseas market grew by about 60% in the first half of this year. In the follow-up, he is very optimistic about the company's overseas business, and it is expected that the proportion of sales in overseas markets will reach 30% this year.

"At present, the company's entire line of products are popular overseas. Coupled with the layout of the international market in recent years, including the distribution of overseas subsidiaries, localized operations, etc., this provides a good guarantee for the next growth." Zhu Jianxin Say.

Many Chinese construction machinery companies are also conducting "localization" overseas. For example, CRCC pointed out that due to its wide geographical coverage and the difficulty of cross-regional and cross-cultural communication in overseas markets, it is the general trend to respond to customer needs in a timely manner, approach the market for business operations, and comprehensively promote localized marketing.

"We have been committed to localized operations, and now overseas regional institutions have covered all continents and major countries, and foreign employees and localized service teams are also being established. Combined with the region, we will gradually select and develop high-quality agents to form localized team management and localization. The improved service system will further enhance the company's reputation in the international market." CRCC said.

However, although the orders in the foreign market are hot, the proportion of sales in the overseas market is not high compared to the domestic market, and there is still a lot of room for improvement in the future.

"On the one hand, our brand influence in the construction machinery industry still needs to be improved. On the other hand, in terms of after-sales service system, we are not as complete as foreign companies. Moreover, from the actual 'going out' path, our overseas Most of the market depends on the overseas investment of central enterprises, bringing our equipment to the sea." Yuan Zhen said.

Hu Junke also pointed out, "Our products basically have no gap with foreign countries in terms of function, and even some products are in the lead, but there is still a gap in product stability. If construction machinery really wants to go abroad, it will ultimately depend on the performance of the product. In the future , Hunan and other domestic construction machinery enterprises still need to be problem-oriented, strengthen innovation in weak areas, and finally achieve full recognition of Chinese products in foreign markets."

528 Bulldozers Were Sold in China July

 According to the statistics of 11 bulldozer manufacturers by China Construction Machinery Industry Association, in July 2022, 528 bulldozers of various types were sold, a year-on-year increase of 8.42%, and a total of 3,893 bulldozers were sold, a year-on-year decrease of 13.9%.

According to the statistics of 10 grader manufacturers by China Construction Machinery Industry Association, 590 graders of various types were sold in July 2022, a year-on-year increase of 16.4%, and a total of 4,201 graders were sold, a year-on-year increase of 0.26%.

According to the statistics of 7 truck crane manufacturers by China Construction Machinery Industry Association, in July 2022, 1,898 truck cranes of various types were sold, a year-on-year decrease of 12.7%, and a total of 17,081 truck cranes were sold, a year-on-year decrease of 56.5%.

According to the statistics of 8 crawler crane manufacturers by China Construction Machinery Industry Association, in July 2022, 296 crawler cranes of various types were sold, a year-on-year increase of 27.6%, and a total of 1,862 crawler cranes were sold, a year-on-year decrease of 33.5%.

According to the statistics of 16 truck-mounted crane manufacturers by China Construction Machinery Industry Association, in July 2022, 1,540 truck-mounted cranes of various types were sold, a year-on-year decrease of 8.66%, and the cumulative sales of truck-mounted cranes was 12,175, a year-on-year decrease of 32.7%.

According to the statistics of 25 tower crane manufacturers by the China Construction Machinery Industry Association, in July 2022, 1,851 tower cranes of various types were sold, and a total of 12,644 tower cranes were sold.

According to the statistics of 33 forklift manufacturers by China Construction Machinery Industry Association, in July 2022, 84,931 forklifts of various types were sold, a year-on-year decrease of 9.73%, and a total of 638,220 forklifts were sold, a year-on-year decrease of 2.89%.

According to the statistics of 19 road roller manufacturers by China Construction Machinery Industry Association, in July 2022, 1,239 road rollers of various types were sold, a year-on-year decrease of 3.8%, and a total of 9,309 road rollers were sold, a year-on-year decrease of 32.3%.

According to the statistics of 13 paver manufacturers by China Construction Machinery Industry Association, in July 2022, 137 paver units of various types were sold, a year-on-year decrease of 9.27%, and a total of 939 paver units were sold, a year-on-year decrease of 47%.

According to the statistics of 11 lifting and working platform manufacturers by China Construction Machinery Industry Association, in July 2022, 18,877 lifting and working platforms of various types were sold, a year-on-year increase of 20.4%, and a total of 118,365 lifting and working platforms were sold, a year-on-year increase of 19.6%.

According to the statistics of 10 aerial work vehicle manufacturers by China Construction Machinery Industry Association, in July 2022, 224 aerial work vehicles of various types were sold, a year-on-year decrease of 17.9%, and a total of 2,124 aerial work vehicles were sold, a year-on-year decrease of 6.92%.