Slower economic growth may pull down machinery

At the recent press conference held by the president of the China Construction Machinery Industry Association, Jun Jun said that due to the slowdown in China's economic growth over the next five years, China’s construction machinery industry may not continue to grow at a rate of around 30% per year for the previous decade. The average growth rate in the next five years will slow to about 17%.

Yan Jun pointed out that the rapid growth of China's construction machinery industry in the past decade was due to the small scale of the overall industry and the huge investment in fixed assets that brought development opportunities to the construction machinery industry. However, these factors may be "wind no longer" as the economy slows down.

“The adjustment of China’s economic structure is accompanied by the adjustment of the industrial structure. The construction machinery industry will also face the same problems.” Yang Dongsheng, Vice President of XCMG Construction Machinery Co., Ltd. told the “International Finance” reporter that in the past few years, China The construction machinery industry is still a traditional labor-intensive industry. If the growth mode is not adjusted, the entire industry will face the problem of lack of growth potential.

Yan Jun said that in the first quarter of this year, the construction machinery industry maintained a growth rate of 50%, this growth rate may continue this year, but the growth rate may decline in the next few years.

Yan Jun said that due to the slowdown in the growth of the industry, the current construction machinery industry has seen signs of vicious competition. Some companies have even introduced a "zero down payment" policy for buying products. The price war between manufacturers may be triggered. "Industry Association The next step will guide and remind enterprises to maintain a reasonable market competition order."