The construction machinery industry will face these changes in 2017

In 2017, China's construction machinery industry is ushered in a small change, and the "Yangchun February" trend is a foregone conclusion. The industry generally believes that this year will be the peak of large-scale project construction, the next two years should be the industry's investment peak, construction machinery in 2017, the industry's profit growth is a high probability event.
The "13th Five-Year" project will start in the new year
According to the national plan of “Medium and Long-term Railway Network Planning” and “Three-year Action Plan for Major Construction of Transportation Infrastructure”, China will promote the construction of transportation infrastructure projects. In 2017, the growth rate of infrastructure investment will remain at around 20%, and the overall scale is expected to be around 16 trillion yuan.
Generally speaking, the general path for the promotion of the 13th Five-Year Plan is 2016, which is the signing year, and 2017 is the starting year. After a long period of preparation and integration, projects across the country have moved from impetus to instigation, bringing more substantial contributions to infrastructure and the economy. In a certain sense, the implementation of large-scale construction projects will inevitably digest the overcapacity of domestic construction machinery, which will also play a considerable role in promoting the development of the construction machinery industry in 2017.
The industry will usher in a "changing tide"
The elimination period of construction machinery and equipment is about 8 years. Since the peak of equipment sales in 2008, a large number of equipment needs to be updated. The industry estimates that in 2017, about 2.4 million pieces of old machinery will be phased out in the market holdings of more than 7 million construction machinery, which will free up effective market space for the sales of new construction machinery. The market demand for construction machinery plays a positive role.
According to the relevant regulations of GB20891-2014, since April 1, 2016, industrial enterprises have stopped selling construction machinery equipped with China II diesel engines. The enforcement of the National III standard will also allow a large number of existing equipment to be taken out of service, making room for new equipment. With the beginning of the effect of the policy market, in 2017, the construction machinery industry will usher in a wave of “changing the tide”.
Service quality has become a watershed in the industry
The major projects have greatly increased the operating rate of equipment, and the after-sales problems such as the maintenance of old equipment and the running-in of new equipment will usher in a wave of growth. In addition to the quality of the product itself, differentiated services will become the watershed to determine the reputation of the industry brand in 2017.
With the awareness of consumer rights protection, consumers pay more attention to the after-sales service quality of products and equipment.
"One Belt, One Road" further accelerates
According to the data released by industry organizations, the internationalization process of China's construction machinery industry is still at the basic stage, and the export sales account for 30% of the total sales of enterprises, and there are very few.
A series of factors such as the dust settled in the US election, domestic policy support and the depreciation of the renminbi will further accelerate the “Belt and Road”, more major projects will be realized, and the construction machinery industry will have development prospects that can be expected.
The overall operating environment of the industry has improved significantly
After the trillion-dollar investment ebb, the construction machinery industry has been falling all the way. The number of enterprises in the excavator industry peaks is more than 100, and now there are only more than 20. A careful study will reveal that the fallen companies have come together in the first place, without deep market, no perfect products, mature marketing system and deep customer base. This fall, very consistent with the competitive mechanism of the survival of the fittest.

After experiencing the ebb tide baptism, the companies and customers left behind are excellent. The customers who have the purchasing needs have actual needs. The company pays more attention to the payment and cash flow when selling, which is the industry recovery for this year. A relatively healthy environment has been put in place.

Deshengrui Machinery is a professional CNC manufacturing and Sheet metal fabrication company, including CNC machining services, CNC turning service, CNC milling services, CNC drilling services, laser cutting services, stamping services, Die casting service, iron casting service and Steel Forging service.

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