Small excavator market growth is strong

In the first quarter of this year, the sales volume of China's mini-excavators attracted attention. The sales volume of domestic excavators was approximately 33,000, of which excavator sales in March were higher than the combined sales in January and February. The sales of small excavators are extremely hot, accounting for about 50% of total sales. Compared to mid-large digging, the profit margin of small excavators is obviously much smaller. However, small digging of sales data for the first quarter has forced companies to pay attention to this market.

Excavators are widely used

"The market for small excavators is only in rural areas," which is widely accepted in the industry. However, with the acceleration of the country’s urbanization process, the rural areas that were originally not favored by manufacturers have gradually become the main station for engineering construction. With a compact excavator that combines flexibility, versatility, and versatility, the market will become more and more explosive. Apart from the emphasis on the “Urbanization Policy”, from the perspective of China’s economic development process, labor costs are gradually increasing. The trend of "replacement of manpower with machinery" has become increasingly apparent. Fast and efficient operation also makes more and more people begin to recognize and use engineering machinery operations.

In Guangfeng, the excavator's capital, small excavators can efficiently help grow crops. At the same time, small excavators can also complete some small water conservancy projects. What's more, excavators are used in farms to help them raise their pigs. Due to its low price, light weight, easy maintenance and maintenance, the compact excavator is widely used in the rural market for its flexible operation, wide application and high efficiency. At the same time, the state has introduced a series of preferential agricultural policies, financial support for rural areas to increase loans, some companies have been included in the "Agricultural Machinery Purchase Subsidy Catalog", led a large number of rural people began to buy construction machinery products. In addition to being welcomed in rural areas, small construction machinery has become the new darling of urban construction in recent years.

With the continuous introduction of national macroeconomic policies, the proportion of large-scale civil engineering projects has declined, and the demand for municipal maintenance has continued to rise. For example, municipal maintenance, landscaping, environmental protection, hydropower facilities, and property management have all provided small excavators with a show of their own. A good opportunity. Take Beijing alone as an example. In 2011, the newly added urban afforestation area reached 700 hectares. In addition, the 3rd Ring Road greening and luster project has planted 45,000 trees and shrubs, and laid 62,000 square meters of lawns. The city has completed the greening of the old districts. Renovation of 57 sites will involve the construction of 20 hectares of green space in the newly constructed residential area and 82,000 acres of greenery and afforestation in the suburbs These figures not only represent an increase in green area, but also allow us to see the potential market for small excavators.

High cost performance Strong overseas competitiveness

Compared with the tendency of large-scale construction machinery to saturate, there is still a gap in the demand for small construction machinery. In the first quarter, sales of small excavators confirmed this view. In the foreign market, this gap is even greater. According to experts, Myanmar, Thailand, Laos, Cambodia, and other countries have low economic levels and are all big countries in agriculture. They have great demand for small construction machinery. However, looking around the world, there are many agricultural developing countries like Myanmar. A few days ago, experts in the engineering machinery market analyzed that high-tech products with advanced technology from abroad cannot find a suitable market for sales in such emerging markets as Southeast Asia and Africa. On the contrary, “Chinese companies are in an ideal state because they have priority in emerging markets. What is needed: Durable, technically simple, reasonably priced, and user-serviceable." China's mini excavators are competitive in overseas markets.

The rate of economic growth has gradually slowed down, and the construction of large-scale domestic projects is gradually decreasing, which greatly restricts the market for large-scale construction machinery. In the downturn of the market, it is important to practice hard. However, with keen insight into the market, investing in the small construction machinery industry may have unexpected results.