Engineering Machinery in Moderate Recovery

The engineering machinery is facing the most serious, the most lengthy challenge. The myth out of the high-growth will lead to companies’ deep thinking. In the background of the transformation, the transformation of engineering machinery manufacturing will be the topic that we can not avoid. Actively adjusting the structure, changing the way to focus on improving product quality, enhancing brand value will be the most important in the future development of the engineer machinery industry.

Recently, engineering machinery is moving up. Downtime- he big season in November, the railway investment is still in high growth; the new rural and high-speed rail and other infrastructure projects will be started soon; the real estate industry is getting warmer. Those projects will gradually increase the demand of machinery. The domestic economy has begun to stabilize rebound also.

2013 the strength of the recovery in the industry will be weaker than the level of the last round of the cycle. Restoration of infrastructure and real estate investment is the driving force for the development of the industry next year, but the strength of the recovery is not optimistic. Market share will continue to be concentrated to the leading enterprises. As cost leadership is a core element of competition in the market, the competitiveness of enterprises is reflected in the integration of the industry value chain. Therefore, Enterprises within the industry will try to find ways to expand. The excess capacity will be the norm in the future development of the industry. The competition in the industry will contribute to the concentration of market share to the leading enterprises.

Future urbanization will be the opportunity for a new round of development of machinery industry. New urbanization has been identified as an important factor to lead the future development of China’s economy. City development will provide a new opportunity for the development of the machinery industry.

It is expected that the downstream investment demand will be modest growth in 2013. China’s engineer machinery industry had passed the worst time and is now on the stage of a modest recovery in 2013. The second half of next year probably will be the inflection point of the construction machinery industry.

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