Sales of Chinese Engineering Machines are Turning Good

In the first half of 2014, the sales areas of commercial residential buildings had decreased by 6% while the construction areas dropped by 16.5% on year-on-year basis. In the latter half of 2013, sales areas of commercial residential buildings reached 0.79 billion square meters, which led to relatively high absolute level. Therefore, the range of declining might be expanded in the second half of 2014 to limit the construction projects. 

 

Real estate is one of the most important downstream fields of engineering machinery. The wear construction projects will stifle sales of construction machines and equipment. The earth-moving machines are faced with weak sales performance. The sales volume of concrete machinery is continually decreasing at large speed rate. 

 

The sales volumes of excavators and loaders dropped by 8% and 4% respectively in March, 2014, ending a positive growth that had lasted for eleven months. The situation went worse after that. In July, the sales volumes of excavators and loaders declined by 27% and 20% respectively. 

 

Research shows that concrete machinery of leading enterprises remained an over 30% declining rate. The achievement of gross profit rates was also confronted with great pressures. 

 

In view of the central government, capital constructions are important points of strength when employing micro-stimulation. Under this circumstance, we expect the engineering machinery to present good performance on their structures. It is predicated that the manufacturers of key components would do better in the next five to ten years than manufacturers of main engines.