August 15, 2020

CCTV Financial Review Secret: Excavator sales, why?

Recently, it was "awesome!" Trinity's "Excavator Index" has been promoted to Prime Minister Li Keqiang's economic forum" to brush up the circle of friends. Sales of excavators soared in the first half of 2017, making the economic term "Excavator Index" into the public eye and excavator sales. Why? CCTV Financial Review reveals secrets for everyone.

CCTV Financial Review Secret: Excavator sales, why?

Strong recovery momentum

Since the recovery of the construction machinery industry in 2017, the sales growth of the industry is expected to exceed the previous market's doubling forecast, the recovery momentum is strong, and the volume of excavator transactions has also increased significantly.

According to the excavator branch of the China Construction Machinery Industry Association, in the first half of 2017, 26 mainframe manufacturing companies across the country had accumulated cumulative sales of 70,821 excavators, an increase of 110.3% year-on-year, exceeding the 2016 annual sales volume.

In terms of brand sales, the sales of leading companies are higher than the industry average, and the market share is concentrated in the leading enterprises. In May 2017, Sany Heavy Industry sold 2,160 excavators, an increase of 120% year-on-year, making it the top spot.

Sany Heavy Industry excavator sales in May

The reason behind the excellent excavator sales

From the domestic point of view, during the “13th Five-Year Plan” period, 2016 was the contractual year for infrastructure projects across the country, and 2017 was the year of starting construction. The rate of landing of PPP projects continued to increase from 19.6% at the beginning of 2016 to the end of the first quarter of 2017. 34.5%, the infrastructure project ushered in the peak period of work.

Cao Yuanzheng, chairman of BOCI Research, said that whether or not the infrastructure is active is measured by the "excavator index." Excavator activities are frequent and sales have increased significantly, indicating that infrastructure investment is in place in time.

Cao Yuanzheng, Chairman of BOCI Research Corporation

Wan Hao, chief economist of China Gold Group, believes that the increase in excavator sales is related to two reasons: First, the economy has indeed stabilized, including domestic demand for external demand is in a good range. The other is the lower base of equipment in the previous two years, and it also has a certain relationship.

Large, medium and small digging domestic sales in China

“The proportion of large-digging more than 30 tons used in the mining field has increased considerably, with an increase of 190.6%, and it has developed rapidly.” Zhao Yue, a central financial commentator, analyzed from the sales structure, in addition to the substantial increase in sales of large digging, small digging and The incremental demand for micro-digging has also become increasingly prominent. This is due to the increasing use of micro-digging in the infrastructure construction of farmland water conservancy facilities in many cities and new rural areas. With the deepening of new urbanization reforms, refined reforms, micro-digging markets are also Will bring huge market demand.

Sany micro-digging becomes a leader in small earthworks

From the perspective of external demand, as China's "One Belt and One Road" initiative continues to advance, it will accelerate the demand for construction machinery, high-speed rail and nuclear power in Central Asia, the Middle East, South Africa, and Southeast Asia, and gradually increase the promotion effect of the domestic excavator industry. appear. Coupled with the economic recovery in Europe and the United States, export sales of excavators continue to increase.

Judging from the leading enterprises of construction machinery, Sany actively uses the “Belt and Road” east wind to actively explore overseas markets. The overseas business maintains a growth rate of more than 20% each year, and the proportion of overseas operations has increased to 42.93%.

Upgrade from manufacturing to creation

Excavator sales growth can not do without the independent research and development capabilities of construction machinery companies, Zhao Yue, the central financial commentator said that many domestic excavator manufacturers, developed a lot of products with independent intellectual property rights, especially large excavators. Moreover, domestic excavators have more fuel-efficient capabilities than imported brands, and some excavators can even save one car a year.

Recently, Sany Remote Control Professional Rescue Excavator has successfully delivered the armed police traffic force. Through remote control of the operating cabin, remote control operation and unmanned performance are the same as conventional excavators. The remote control distance can reach 2000 meters and the technology has reached the international advanced level. All these show that, from the upgrade of manufacturing to creation, domestic excavators have become increasingly competitive in the market.

Central Financial Reviewer Zhao Yue

Trinity SY485H digging machine can also save a car in one year

The sales of excavators not only represent the cooling and heating of the construction machinery industry, but also become a microscopic window to observe the investment in fixed assets and even a barometer of the entire real economy. We can see that by analyzing the “excavator index” and releasing macro-economic signals for good, industry players expect the sales of excavators to grow at a faster rate or continue to develop steadily in the second half of the year. (This article is from Trinity)

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