Industry Status
Media reports: China Machinery Industry Association Secretary-General reveals that the engineering machinery industry "the 12th Five-year Plan” has been reported to the National relevant departments concerned, which will be issued in July. We believe that the release of machinery industry "the 12th Five-year Plan” will indicate the direction for the development of machinery in the next five years, which will strengthen market confidence in the machinery long-term growth space.
MachineryIndustry will continue to achieve stable growth: At the end of "the 12th Five-year Plan”, namely, the sales revenue of machinery industry in 2015 is expected to reach 900 billion in RMB, and an Average Annual Compound Growth Rate will reach 17%, thereinto, the industry's exports will reach $26 billion, and exports proportion reaches nearly 20%. Though the machinery industry growth rate of 21.3% and 28.1% is going slowly significantly during "the 12th Five-year Plan” period, compared with Year between 2001-2005, and 2006-2010. People think that the machinery market is saturated, and difficult to achieve a growth generally, however, we believe that "the 12th Five-year Plan” will enhance market confidence in the machinery long-term growth space to a certain extent after the peak growth over the last ten years.
Each product growth performance will embody bigger difference: Look from the 12 kinds of products stated by Industry Association, benefit from the penetration of ascension, the average annual compound growth rate of tower cranes and concrete machinery is expected to reach more than 15% in the next five years; Machinery in Lathe and Heavy Duty Machines are expected to achieve 10% steady growth; the next five years, an average annual compound growth rate of rollers, loaders, gantry machinery is low due to market ownership significantly increase and the substitution effect.
The kernel components research work will be promoted to a new height: The key basic components development lag is the bottleneck of restricting our machinerylong-term competitiveness. Over the past ten years, the market demand is great. Enterprises will focus on the rapid expansion of host machinery production capacity to meet market demand, and key components and basic process of the development will be lagging for a longtime. As the industry severe competition during "the 12th Five-year Plan” period, we think that the kernel components research work is expected to be promoted to a new height, and is expected to form a government leading, the led industry association, theenterprise leading joint breakthrough, so as to realize a leap.
Machinery Industry restructuring mergers and acquisitions is expected to accelerate: With a new round of expansion since 2010, we believe that the excess production capacity can be the key factors which restrict the development of the market in middle-late periods of the "the 12th Five-year Plan”. In the next five years, machinery industry leading enterprises are expected to use their own advantages to realize product line through mergers and acquisitionsand the expansion of the market layout; eliminating the backward and low level repeated construction according to market competition mechanism, industry concentration will be significantly increased.
