Excess Capacity Into The Machinery Industry Is A Major Problem

According to the China Construction Machinery Business survey

, 26 of the main manufacturers of excavators in China sold 8868 units in September, 23.86% down. Excavator cumulative increase since February of this year climbed to the highest point, it has been declining for several months. China Construction Machinery Industry Association has predicted the next five years, the construction machinery industry is expected to be 17% annual growth. But now the growth target is being challenged. Growth in the second quarter of this year began the rapid decline in construction machinery industry had still not out of the signs down, the industry growth is still in the 'bottom.' Affected after construction machinery enterprises are expanding production capacity is becoming excess capacity.

Excavator sales decline in a row is typical of China's construction machinery industry reflected. According to industry experts say, since the second quarter this year, sales of construction machinery industry continued to decline, this phenomenon has not been checked in the third quarter. Zoomlion Chairman Zhan Chun new that the growth rate of decline in construction machinery industry, there have been signs of late last year, the first quarter of this year, industry unexpectedly explosive growth has actually overdrawn market demand, sales of construction machinery starting from the second quarter, a marked decline in . Railway construction slowdown, real estate is the construction machinery industry sales for the decline. Data show that the Ministry of Railways to complete the first nine months of capital construction investment 346.879 billion yuan, down 19.3%. National Railway in the third quarter ended investment for years the Great Leap Forward.

Data also shows that the first three quarters this year, China's fixed asset investment up 24.9% nominal growth (after deducting price factors, the actual increase of 16.9%), down 0.7 percentage points over the first half, shrinking demand for construction machinery industry downstream. Industry sales is to continue to decline or rebound in the fourth quarter? At the recent 2011 Global Construction Machinery Industry 50 Conference and Summit, insiders believe that the fourth quarter of this year may have tail phenomenon. However, many industry experts believe that the macroeconomic policies remain unchanged, the construction machinery industry will be difficult to return to the past growth rate. Institute of Finance, the State Council Development Research Center, Xia Bin, director on the warning, do not use the past to simulate the growth rate is derived future growth, construction machinery industry is facing the future development of more uncertainty.

In the industry under the background of slowing demand, the domestic construction machinery industry excess capacity problem increasingly prominent. And 'excess capacity' has become the focus of engineering machinery industry conference topics. ZhanChunXin the truth, construction machinery industry excess capacity are triggering industry malignant competition. Xugong group President and general manager of the rabbit liugong zeng pins identity construction machinery has appeared excess capacity. However, they think, industry excess capacity is the low end products of the excess, in high-end products field still have space. Four trillion yuan investment by pulling, engineering machinery industry become fast development, the related businesses expand the capacity to increase investment. A shares the main engineering machinery listed companies have or are almost through shares expand the capacity of financing. International experts will China enterprise overcapacity called it 'assembly excess capacity'. In order to deal with excess capacity bring industry competition, some large engineering machinery enterprise is calling on industry management department to make the industry standard, to regulate the market competition.

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by: HXJQ OF CHINA

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