The hot construction machinery market in Xinjiang is expected to drive the industry out of the trough

Under the dual pressure of the European debt crisis and monetary tightening, construction machinery became one of the industries hit hardest in the second half of 2011. Most of the domestic market in the region has been exhausted, with the exception of Xinjiang. The reporter learned from many parties yesterday that at present, energy development and infrastructure construction in Xinjiang are in the ascendant, making the demand for construction machinery increasing day by day, and in the future it is expected to drive the entire construction machinery sector out of the trough. Industry associations expect that the pressure on the machinery industry this year will be less than last year, and production and sales will increase by 18%-20%.

After June of last year, the entire construction machinery market suddenly fell into a weak state, and sales of some products even experienced negative growth. When the industry is concerned that the peak period of China's construction machinery growth has become obsolete, the heat market in Xinjiang has only increased.

In recent years, with the introduction of a series of policies such as the "12th Five-Year Plan" for the development of the western region, projects such as transportation, water conservancy, urban construction, and resource development in Xinjiang are in full swing, which has greatly stimulated the sales of local construction machinery products. The data shows that during the “Twelfth Five-Year Plan” period, Xinjiang’s transportation investment exceeded 100 billion yuan, which will bring tremendous opportunities for road construction machinery, maintenance machinery, concrete and asphalt equipment. At present, the demand for ground machinery has fallen short of supply. In addition, resource development stimulates the demand for equipment such as mines and construction vehicles.

During this period, many listed companies in the field of construction machinery also entered Xinjiang. As the earliest group of companies entering the construction machinery market in Xinjiang, the equipment of XCMG, Zoomlion, and SANY has frequently appeared in various local construction sites. And Sandvik, Caterpillar and other multinational giants have also set up agents or build factories in the area.

The reporter learned from the local area that the six departments of the Xinjiang Economic and Cultural Committee and the Ministry of Transportation and Transportation will jointly hold the Second China Xinjiang International Engineering Machinery, Construction Machinery, Engineering Vehicles and Equipment Expo, and many world projects on May 16. The top 50 machinery companies have confirmed their participation, which has become the best proof of the local construction machinery market.

The industry believes that under the spur of Xinjiang's booming demand, the current “cold winter” of the current construction machinery market will eventually pass. The entire sector is expected to bottom out in the second half of the year.

“For the construction machinery industry, we believe that the second half of 2012 is more optimistic than the first half of the year. The short-term problem is mainly that the profit margin of the stock machines needs to be increased.” Vice President of UBS Securities and mechanical industry analyst Jia Peng accepted the book An interview with the reporter said that after all, this is a cyclical industry, wait until the industry's profit margin to a certain extent, the industry will usher in a recovery.

In response, Cai Weici, executive vice president of the China Federation of Machinery Industry predicts that this year, autos and construction machinery are expected to get out of the steady decline in sales; the electrical industry will be based on steady development; sales of instrumentation and petrochemical general machinery will fall, but the decline Not big.

He believes that the pressure on the entire industry in 2012 will be less than in 2011. Through fine-tuning, it will be conducive to the upgrading of the industry; at the same time, due to the continued expansion of production capacity, competition among enterprises will become more intense. It is expected that in 2012, the production and sales of the machinery industry will increase by 18%-20%, profit growth by 12%-15%, and export growth by 15%-18%.