Three major benefits boost the cyclical recovery of construction machinery
Created Date: 25th Oct 2024
The export growth rate of construction machinery such as excavators and loaders has turned positive, and domestic market sales have steadily rebounded. The construction machinery industry, which has experienced three years of decline, is gradually recovering; Looking back, the last economic cycle of the construction machinery industry began in 2016. With the combined support of periodic equipment updates, electrification, and internationalization, the construction machinery market is expected to continue to recover.
Recently, the latest data released by the China Construction Machinery Industry Association showed that in August 2024, major excavator manufacturers in China sold a total of 14700 units of various types of excavators, with a year-on-year increase of 11.8% in sales volume. Among them, the sales volume of excavators in China in August was 6694 units, a year-on-year increase of 18.1%; The export sales volume was 7953 units, a year-on-year increase of 6.95%, officially ending the 14 consecutive months of negative year-on-year growth in export sales.
Since March, with the joint assistance of factors such as the increase in downstream infrastructure growth and the improvement of equipment replacement demand, sales data of construction machinery represented by excavators have continued to release positive signals. Multiple securities firms have analyzed that after three years of continuous decline, construction machinery has gradually entered the bottom range, and industry listed companies are looking forward to a return to the business cycle.
Excavator export growth rate turns positive
According to statistics from the China Construction Machinery Industry Association, the sales volume of domestic excavators increased by 11.8% year-on-year in August, with a growth rate of 3.2 percentage points higher than the previous month, achieving positive year-on-year growth for the fifth consecutive month. Among them, domestic excavator sales increased by 18.1% year-on-year, exceeding the previous forecast of 17% year-on-year growth by the Construction Machinery Magazine (CME), achieving six consecutive months of positive year-on-year growth; During the same period, the export sales of excavators reached 7953 units, a year-on-year increase of 6.95%, achieving the first positive year-on-year growth rate since June 2023. From January to August, major excavator manufacturers sold a total of 131600 excavators, a year-on-year decrease of 2.2%, and the year-on-year decline continued to narrow.
Meanwhile, in August, the sales growth rate of loaders further expanded. According to statistics from the China Construction Machinery Industry Association, sales of domestically produced loaders reached 8329 units in August, a year-on-year increase of 15.2%. Among them, the sales volume in the domestic market was 4036 units, a year-on-year increase of 8.99%; The export sales volume was 4293 units, a year-on-year increase of 21.8%. From January to August, the cumulative sales of loaders reached 73700 units, a year-on-year increase of 4.7%. Among them, the sales volume in the domestic market was 37400 units, a year-on-year increase of 0.57%, and the sales growth rate officially turned negative to positive; The export sales of loaders reached 36300 units, a year-on-year increase of 9.33%.
Benefiting from the improvement of downstream infrastructure demand and the continuous implementation of equipment replacement support policies, the sales growth rate of domestic excavators has been the first to turn positive and the growth rate continues to expand since March. By May, the scope of recovery for construction machinery had further expanded to include loaders, and domestic sales data had turned positive year-on-year.
Domestic sales experience cyclical recovery
In a recent investor survey, XCMG Machinery revealed that there have been some positive signs in the domestic sales of the industry, especially in the continuous months of conversion of earth and stone machinery, and the construction machinery industry is gradually ushering in a new round of cyclical upward trend.
From the perspective of sales proportion, excavators have the highest sales proportion in the construction machinery industry, therefore, their cyclical changes can reflect the development trend of the entire construction machinery industry.
Continuous repair of export data
Since 2020, leading domestic construction machinery companies such as Sany Heavy Industry, XCMG Machinery, and Liugong have successively embarked on a global layout, investing in the construction of overseas production bases, and promoting the localization and globalization of research and development and service networks through mergers and acquisitions. Going global for construction machinery has gradually become a "must compete place" for domestic OEMs.
Recently, the latest data released by the China Construction Machinery Industry Association showed that in August 2024, major excavator manufacturers in China sold a total of 14700 units of various types of excavators, with a year-on-year increase of 11.8% in sales volume. Among them, the sales volume of excavators in China in August was 6694 units, a year-on-year increase of 18.1%; The export sales volume was 7953 units, a year-on-year increase of 6.95%, officially ending the 14 consecutive months of negative year-on-year growth in export sales.
Since March, with the joint assistance of factors such as the increase in downstream infrastructure growth and the improvement of equipment replacement demand, sales data of construction machinery represented by excavators have continued to release positive signals. Multiple securities firms have analyzed that after three years of continuous decline, construction machinery has gradually entered the bottom range, and industry listed companies are looking forward to a return to the business cycle.
Excavator export growth rate turns positive
According to statistics from the China Construction Machinery Industry Association, the sales volume of domestic excavators increased by 11.8% year-on-year in August, with a growth rate of 3.2 percentage points higher than the previous month, achieving positive year-on-year growth for the fifth consecutive month. Among them, domestic excavator sales increased by 18.1% year-on-year, exceeding the previous forecast of 17% year-on-year growth by the Construction Machinery Magazine (CME), achieving six consecutive months of positive year-on-year growth; During the same period, the export sales of excavators reached 7953 units, a year-on-year increase of 6.95%, achieving the first positive year-on-year growth rate since June 2023. From January to August, major excavator manufacturers sold a total of 131600 excavators, a year-on-year decrease of 2.2%, and the year-on-year decline continued to narrow.
Meanwhile, in August, the sales growth rate of loaders further expanded. According to statistics from the China Construction Machinery Industry Association, sales of domestically produced loaders reached 8329 units in August, a year-on-year increase of 15.2%. Among them, the sales volume in the domestic market was 4036 units, a year-on-year increase of 8.99%; The export sales volume was 4293 units, a year-on-year increase of 21.8%. From January to August, the cumulative sales of loaders reached 73700 units, a year-on-year increase of 4.7%. Among them, the sales volume in the domestic market was 37400 units, a year-on-year increase of 0.57%, and the sales growth rate officially turned negative to positive; The export sales of loaders reached 36300 units, a year-on-year increase of 9.33%.
Benefiting from the improvement of downstream infrastructure demand and the continuous implementation of equipment replacement support policies, the sales growth rate of domestic excavators has been the first to turn positive and the growth rate continues to expand since March. By May, the scope of recovery for construction machinery had further expanded to include loaders, and domestic sales data had turned positive year-on-year.
Domestic sales experience cyclical recovery
In a recent investor survey, XCMG Machinery revealed that there have been some positive signs in the domestic sales of the industry, especially in the continuous months of conversion of earth and stone machinery, and the construction machinery industry is gradually ushering in a new round of cyclical upward trend.
From the perspective of sales proportion, excavators have the highest sales proportion in the construction machinery industry, therefore, their cyclical changes can reflect the development trend of the entire construction machinery industry.
Continuous repair of export data
Since 2020, leading domestic construction machinery companies such as Sany Heavy Industry, XCMG Machinery, and Liugong have successively embarked on a global layout, investing in the construction of overseas production bases, and promoting the localization and globalization of research and development and service networks through mergers and acquisitions. Going global for construction machinery has gradually become a "must compete place" for domestic OEMs.