Construction Machinery Market Pick Up In March

According to sales data in March, the construction machinery industry seems to usher in good opportunities

. In March 2012, 28 major excavator manufacturers sold 23,248 excavators, an increase of 48.85% month-on-month. Some insiders expressed optimism that the inflection point has arrived. However, experts believe that the industry inflection point is too early to talk about, the real turning point may be the advent of May. Then the policy adjustment will bring the increase in infrastructure investment such as China roof tile roll forming machine, roll forming machine, etc. and demand for construction machinery to form a real pull.

In March 2012, 28 major excavator manufacturers sold 23,248 excavators, an increase of 48.85% month-on-month. The reasons for the growth, some analysts believe that with the advent of spring, a large number of projects began to return to work, at the same time the new projects increased around china, downstream demand for excavator is gradually increasing. In addition, the local financial funds will be in place and inject a dose of confidence to the market.

Insiders pointed out that, as a leading indicator, the excavator market is still sluggish. Most dealers reflect that sales were essentially flat in March, with more than 40% decline year-on-year. The downstream condition has not begun to rebound, the market is still at a low point. The reasons for these phenomena are as follows. The largest infrastructure project related with moving machinery doesn't return to work yet; early national inclement weather lead to delayed start of some projects; both production and marketing thrived over the same period of last year, with a cardinal number. So the advent of industry inflection point needs a period of time.

Some grass-roots survey shows that most of the dealers make optimistic judgment toward the future industry needs in April. They think that with the weather turns good and the release of the demand for investment and other factors are conducive to the resumption of work and new construction of the project. However, from the fundamental point of view, the inflection point of the industry still does not appear, the trend of investment opportunities for construction machinery is still need a period of time.

It should be in May to reach the Inflection point. On the one hand, the industry base is relatively small in May over the same period of last year. On the other hand, the policy considerations in the second quarter are a probability event, real fine-tuning of the policy is a high probability event. If the policy is shot, infrastructure investment is the primary demand. It's a real pull for construction machinery.

by: Amanda Xia

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