2016-2017, Three Aspects Make Concrete Machinery Sales Stabilise

Update:10-05-2018

1. Real estate investment growth picks up. After the period of real estate investment downturn from 2012 to 2015, the newly-started area of real estate began to pick up in 2016. Even with the strict real estate control policies introduced after October 2016, the growth rate of batching plants new real estate for the first half of 2017 will still reach 11%. In addition, the three-and-four-tiered urban real estate stocks and land acquisitions are relatively positive and provide an incremental increase in real estate investment.

2. Restart of infrastructure projects. Since 2017, the growth rate of investment in infrastructure construction projects has continued to grow. In the first half of 2017, it remained at around 11%, slightly surpassing the 2016 level. Since the second half of 2016, the PPP model has risen, and a large number of PPP projects have been phased out, including transportation, water conservancy, municipal engineering, development of the area, government infrastructure, and security housing projects. According to Wind data, PPP projects in the above areas are shown. The proportion of investment in PPP projects reached 82%.

3. Strengthen environmental protection policies. To implement the "Law of the People's Republic of China on Prevention and Control of Atmospheric Pollution" and strictly control the pollution of motor vehicles, the National Five Standards stipulated in the "Limits and Measurement Methods for Light Vehicle Pollutants Emissions (China Five Phases)" have been fully implemented since July 2017. No longer produce and sell non-national five-standard heavy-duty diesel vehicles. It has a positive impact on mixer trucks, pump trucks, and on-board pumps in the field of construction machinery. The current stock of construction machinery and equipment, including concrete machinery and equipment, is mainly based on the National 2 and National 3 standards, and the pollution is relatively large. With the increasingly stringent enforcement of environmental laws and regulations, there will be greater equipment replacement needs in the future.