Can urbanization construction help boost sales in the mixing plant industry?

The construction machinery industry is still very injured. The sluggish market, high accounts receivable, and high inventory have become the three major problems that harm the development of the industry. High speed rail, real estate, and infrastructure construction have propelled the construction machinery industry through one difficulty after another. Can industries that have encountered bottlenecks in development rise again against the trend with the help of urbanization?

Can new urbanization help China's construction machinery industry move forward

Real estate investment is the main driving force behind the sales of construction machinery. In the absence of significant relaxation of real estate regulation policies, the growth rate of real estate investment has limited recovery; The number of construction machinery has reached a certain scale, and currently the operating rate of the main products is insufficient. With the improvement of downstream industries, the first driving force is the increase in the utilization rate of existing equipment. However, Hong Xiaoming believes that in the long run, the construction machinery industry is still a "sun never sets" industry. In the past 30 years, China has embarked on a path of rapid urbanization. By 2011, China's urbanization rate had exceeded 50%, reaching 51.27%. However, even so, there is still a significant gap in China's urbanization construction compared to developed countries abroad. By 2020, China's urbanization level will strive to reach around 60%. The national proposal of urbanization strategy will undoubtedly promote the process of urbanization and the renewal and development of infrastructure projects. And this will give the Chinese construction machinery industry at least another 10 years of development.

Nobel laureate in economics and former Vice President of the World Bank, Stiglitz, once said, "Urbanization in China and high-tech development in the United States will be two major events that will affect the progress of human development in the 21st century

In China, in order to emphasize the coordinated development of cities, rural areas, large towns, and small towns, we refer to this change in human settlement patterns, employment patterns, and communication patterns as "urbanization". Urbanization, also known as urbanization, involves significant social changes such as transitioning from a small-scale agricultural economy to an industrial economy, from a self-sufficient economy to an open economy, and from low technological content to a new technological revolution. In 2011, China's urbanization rate exceeded 50% for the first time, reaching 51.27%. It is expected that by 2020, China's urbanization level will reach around 60%. This number means that the urban-rural structure in China, which has been dominated by rural populations for thousands of years, will undergo fundamental changes, similar to the saying "three generations of poor peasants" during the Cultural Revolution, or it will truly become history.

Gu Shengji, member of the Standing Committee of the National People's Congress and vice chairman of the Central Committee of Civil Construction, said, "China's urbanization will be a big potential domestic demand and lasting power." As a typical investment driven industry, the speed and growth space of the urbanization process determine the future development prospects of the construction machinery industry.

Although there is still much debate in the academic community about the mode of urbanization construction, it cannot be denied that with the sharp increase in the number of people entering cities, the demand for housing and comprehensive facilities has also skyrocketed. According to relevant data, for every one percentage point increase in urbanization rate, the influx of rural population into cities will increase by 13 million (calculated based on the national population of 1.3 billion), driving 6.6 trillion yuan in urban construction investment. According to the general rule, the procurement amount for construction accounts for 4% to 8% of the investment amount for newly started projects. Therefore, the market prospects for construction machinery are quite broad.

Specifically, urban infrastructure construction includes the construction of energy facilities such as electricity, gas and natural gas, water supply and drainage facilities such as waterworks, drainage and sewage treatment, transportation facilities such as aviation, railways, expressways, tunnels and bridges, postal and telecommunications facilities such as mobile phones and the Internet, environmental protection facilities such as landscaping, and disaster prevention facilities such as fire protection, flood prevention and earthquake prevention Domain. The investment and construction of urban infrastructure projects will directly drive the subdivision of road machinery, earthmoving machinery, lifting machinery, commodity pumping machinery, environmental sanitation machinery, etc The rapid growth of the domain.

Although the process of urbanization has provided confidence for the development of the construction machinery industry like a shot in the arm, it should be noted that urbanization construction is a long-term project, full of development and hesitation, inheritance and change, opportunities and challenges. From a historical perspective, it took the UK 180 years, the US 90 years, Japan 60 years, and China at least 30 years to increase the urbanization rate from 30% to 60%. Therefore, urbanization is particularly important for construction machinery enterprises as an important basis for formulating development strategies.