the machinery manufacturing industry is expected to steadily increase in 2024

Release date 2024-12-01 15:23:49 Reading 2

　　Policies boost demand, and the machinery manufacturing industry is expected to steadily increase in 2024used excavator

　　It is expected that in 2024, with the investment of equipment renewal policy and treasury bond funds in infrastructure construction and other fields, the industry will achieve technology upgrading and capacity optimization, the demand for advanced capacity will continue to grow, which is expected to boost the demand for order growth, the market is expected to enter a stable recovery period, the machinery manufacturing industry will maintain a certain scale of revenue and may achieve growth, and the industry's prosperity is expected to improve.used excavator used excavator used excavator

　　Policy environmentused excavator used excavator used excavator used excavator

　　It is expected that in 2024, driven by policies such as equipment update, the industry will realize technology update and capacity optimization, and the demand for advanced capacity is expected to continue to grow. With the investment of treasury bond funds in infrastructure, engineering construction and other fields, the machinery manufacturing industry is expected to meet the demand for order growth, and the industry's prosperity is expected to improve.used excavator used excavator

　　The policy sensitivity of the mechanical manufacturing industry is strong, mainly influenced by its upstream and downstream industry policies. Policies such as reducing production capacity and environmental protection have a significant impact on the output and cost of upstream industries such as steel and non-ferrous metals in the machinery manufacturing industry; Downstream infrastructure investments such as highways, railways, and airports are directly controlled by fiscal policies.used excavator

　　The machinery industry is a key pillar of the national economy, military industry, and people's livelihood, with profound impacts on manufacturing, construction, agriculture, transportation, scientific research, and people's lives. The current complex external environment and domestic demand shortage have made some enterprises face difficulties, and the risks in key areas have increased, which has brought huge challenges to the stable growth of the industry. In order to maintain a stable and positive trend in the operation of the machinery industry, the resilience and safety level of key industrial and supply chains continue to improve, and the quality and efficiency of industrial development continue to enhance. In August 2023, the Ministry of Industry and Information Technology and others issued the "Work Plan for Stable Growth of the Machinery Industry (2023-2024)" (hereinafter referred to as the "Work Plan"). The Work Plan mainly focuses on 11 sub industries, including machine tools, agricultural machinery, engineering machinery, instruments and meters, robots, rail transit equipment, medical equipment, mechanical basic components, cultural office equipment, food packaging machinery, and other civil machinery. The Work Plan proposes to strive for an average annual growth rate of over 3% in operating revenue, reaching 8.1 trillion yuan by 2024. In terms of precise implementation of segmented policies, the Work Plan proposes three key tasks: supplementing and upgrading the supply chain to promote the quality and efficiency improvement of basic equipment, strengthening and consolidating the development momentum of advantageous industries, and continuously cultivating and strengthening emerging industries through chain building and extension. It also promotes stable growth in eight key sub sectors, including industrial mother machines, instruments and meters, agricultural machinery equipment, basic components and manufacturing processes, engineering machinery, rail transit equipment, medical equipment, and robots.used excavator used excavator used excavator used excavator

　　In addition, fiscal policies may indirectly stimulate the development of machinery and upstream and downstream industries. In October 2023, the sixth meeting of the Standing Committee of the 14th National People's Congress voted to pass the resolution of the Standing Committee of the National People's Congress on approving the issuance of additional treasury bond by the State Council and the central budget adjustment plan for 2023, specifying that the central finance will issue an additional 100 billion yuan of treasury bond for 2023 in the fourth quarter of this year; In terms of fund utilization, according to the Ministry of Finance, the focus will be on eight areas: post disaster recovery and reconstruction, key flood control and governance projects, natural disaster emergency response capacity enhancement projects, other key flood control projects, irrigation area construction and renovation, key soil erosion control projects, urban drainage and flood prevention capacity enhancement actions, comprehensive prevention and control system construction projects for key natural disasters, and high standard farmland construction in disaster stricken areas such as Northeast China and Beijing Tianjin Hebei region. Most engineering projects require a large amount of mechanical equipment to participate, such as post disaster recovery and reconstruction, flood control engineering construction, irrigation area renovation, etc., which will generate a large demand for various construction equipment such as excavators, loaders, cranes, bulldozers, etc. Secondly, the use of treasury bond funds will help drive domestic demand, further consolidate the economic recovery, thus creating a good macroeconomic environment, which is undoubtedly beneficial to the development of the machinery manufacturing industry. The policy provides conditions for the subsequent increase in orders and the recovery of industry prosperity in the machinery manufacturing industry, which is conducive to promoting the vigorous development of upstream and downstream industries as well as the machinery manufacturing industry.used excavator used excavator used excavator used excavator

　　Since 2024, the government has successively proposed policy deployments regarding the mechanical manufacturing industry. In March 2024, the Premier of the State Council presided over a State Council executive meeting on March 1, which reviewed and approved the "Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Trade in" (hereinafter referred to as the "Action Plan"), studying the acceleration of the construction of modern infrastructure system and the continuous and in-depth promotion of high-quality development of the Yangtze River Delta integration. The meeting pointed out that promoting a new round of large-scale equipment updates and exchanging old for new consumer goods is a major decision made by the Central Committee of the Communist Party of China with a focus on the overall high-quality development of our country; We should combine the differentiated needs of various equipment and consumer goods for upgrading, increase policy support in finance, taxation, and banking, better play the leading role of energy consumption, emissions, technology and other standards, orderly promote the upgrading and transformation of key industry equipment, construction and municipal infrastructure equipment, transportation equipment, old agricultural machinery, education and medical equipment, actively carry out the exchange of old for new consumer goods such as automobiles and household appliances, and form a scale effect of upgrading. In the same month, the second session of the 14th National People's Congress held a press conference on economic topics. Zheng Zhajie, director of the National Development and Reform Commission, said that the focus of the implementation of equipment renewal action would be on seven fields, including industry, agriculture, construction, transportation, education, culture and tourism, and medical care. These fields have huge demand for equipment upgrading, and will focus on energy conservation and carbon reduction, ultra-low emissions, safe production, digital transformation, intelligent upgrading and other directions to promote equipment upgrading in key industries; At the same time, we will combine the promotion of urban renewal and the renovation of old residential areas, classify the upgrading of equipment in the fields of construction and municipal infrastructure, and support the upgrading of transportation equipment and old agricultural machinery. This policy deployment clearly proposes to increase the support for fiscal, taxation, finance and other policies, which undoubtedly injects more vitality into the development of the machinery manufacturing industry, encourages advanced and outdated, promotes the continuous increase of the proportion of advanced production capacity, brings greater market demand, and provides a good policy environment for technological updates and capacity optimization in the machinery manufacturing industry.used excavator used excavator

　　Industrial patternused excavator used excavator used excavator used excavator used excavator used excavator

　　The mechanical manufacturing industry is an investment driven industry that is sensitive to macroeconomic changes; In 2023, due to the sluggish downstream real estate and infrastructure market, the sales of some construction machinery products in the industry will decline; It is expected that by 2024, with the gradual manifestation of policy effects, the domestic market is expected to enter a period of stable recovery.used excavator used excavator used excavator used excavator

　　The machinery manufacturing industry is closely related to many industries in the national economy. Its demand is greatly affected by the scale of fixed assets investment in downstream industries. It is an investment driven industry with high macroeconomic sensitivity and strong industry cyclicality. When the macro-economy is in an upward cycle, the increase in the scale of downstream fixed assets investment will drive up the demand and price of related machinery and equipment, improve the profitability of the industry, and further drive the increase of industry investment; However, when the macro-economy enters the downward cycle, the downstream industry's fixed assets investment declines, the industry's overcapacity problem becomes prominent, the price of related machinery and equipment drops, the industry's profitability declines (even losses), and the industry's risks increase.used excavator used excavator used excavator used excavator

　　The demand of the machinery manufacturing industry is mainly affected by the downstream fixed assets investment scale, stock update, product technology iteration and other factors, of which the downstream fixed assets investment has a decisive impact. At the end of December 2023, in the cumulative growth of fixed assets investment, real estate continued to decline, and infrastructure and mining recovered slightly month on month. All the 1 trillion yuan additional treasury bond issuance projects announced in October 2023 have been released to the local governments, which has promoted the growth rate of infrastructure construction investment to 10.7% by the end of December 2023. The actual amount of construction started still needs continuous attention. In February 2024, China's manufacturing PMI was 49.1%, a decrease of 0.1 percentage points compared to the previous month, still below the boom bust line. The production index decreased by 1.5 percentage points compared to the previous month to 49.8%. The manufacturing industry as a whole is continuing to seek a rebound point, and demand remains weak, which limits production. With policy incentives such as equipment updates in early 2024, the pro cyclical direction is expected to benefit, and it is expected that the growth rate of manufacturing investment will increase. In terms of real estate, due to the weak sales of commercial housing and the exposure of credit risks for some real estate companies, the growth rate of real estate investment will continue to remain low by the end of 2023; Since 2024, cities such as Beijing and Shenzhen have successively optimized their purchase restriction policies. In the future, as the policy effects continue to be released, downstream real estate construction demand is expected to improve.used excavator

　　In terms of updating product inventory, construction machinery and equipment belong to consumables, with a service life of generally 7-10 years. In 2023, due to the continued downward trend in the market cycle of the machinery manufacturing industry, high inventory, and insufficient operating rates of some products, according to the industry statistics of the China Construction Machinery Industry Association, the overall sales of excavators, loaders, graders, truck cranes, crawler cranes, tower cranes, rollers, and pavers will decline, while the sales of truck mounted cranes, forklifts, lifting platforms, and aerial work vehicles will achieve year-on-year growth. The overall market for major products is weak; Among them, the cumulative sales of excavators in China have decreased by about 40% year-on-year, still in a low point stage, waiting for a cyclical recovery. In addition, the general equipment market has a large stock, and a new round of large-scale equipment updates will be beneficial for the development of general automation industries such as machine tools, injection molding machines, and industrial control equipment. In terms of overseas markets, the improvement of technology and product quality, coupled with the continuous enhancement of domestic brand competitiveness and the improvement of overseas channel layout, although the growth rate has slowed down, the overall growth trend is maintained. The export market may face pressure in the short term due to factors such as a high export base in 2022, recovery of overseas supply chains, and slower economic growth in some regions, but its long-term growth trend has not changed. In the long run, with the gradual deepening of cooperation between China and countries along the the Belt and Road, the comprehensive competitiveness of China's construction machinery products in the global market will continue to improve, and the export will still be flexible.used excavator used excavator used excavator

　　It is expected that by 2024, with the gradual manifestation of policy effects, the domestic market is expected to enter a period of stable recovery. Encouraged by policies, capital expenditures in high-tech manufacturing are expected to accelerate, further stimulating demand recovery in the machinery manufacturing industry.

　　Profitabilityused excavator used excavator used excavator used excavator used excavator

　　In 2023, the mechanical manufacturing industry will continue to undergo deep adjustments due to weak market demand and shrinking real estate investment. However, it is expected that signs of recovery may begin to emerge in 2024, and high-quality enterprises may show strong performance; The policy will boost the demand for machinery and equipment in infrastructure investment, and the machinery manufacturing industry will maintain a certain scale of income and may achieve growth.

　　In 2023, the overall situation of the mechanical manufacturing industry continued from 2022, affected by the overall macroeconomic and real estate sectors' coldness, the industry's demand shrank, and the slow progress of construction projects resulted in sluggish sales of major products. Enterprises faced the dilemma of declining revenue or profitability, and the mechanical manufacturing industry underwent a deep adjustment. In 2023, according to the performance forecasts released by some listed machinery companies, Weichai Power Co., Ltd., Zoomlion Heavy Industry Science and Technology Co., Ltd., Hangcha Group Co., Ltd., Guangxi Liugong Machinery Co., Ltd., Shantui Engineering Machinery Co., Ltd. and others are expected to see a year-on-year increase in net profit. Shanhe Intelligent Equipment Co., Ltd. has achieved a turnaround from losses to profits. Although the entire industry is still in the adjustment stage, some companies have begun to enter the recovery channel, and their profitability level has recovered from the low base of the previous year.used excavator used excavator used excavator used excavator

　　In 2024, the mechanical manufacturing industry may still face challenges such as sluggish domestic market demand and weak real estate investment, and high-quality enterprises in structural adjustment may demonstrate outstanding performance. At the same time, the central government plans to issue trillion yuan of treasury bond, and the issuance of special bonds will also speed up. The policy will boost the demand of infrastructure investment for machinery and equipment. With the help of economic policy stimulus, the machinery manufacturing industry will maintain a certain scale of revenue and may achieve growth.used excavator used excavator used excavator

For more used excavator for sale information, click: https://www.uexcavator.com/

Previous: used excavator How to promote the development of foreign trade

Next: How to promote the development of foreign trade in the industrial sector

High quality and low price

We guarantee the quality of each machine and promise
to offer you the most favorable price.

the machinery manufacturing industry is expected to steadily increase in 2024

High quality and low price

We guarantee the quality of each machine and promise to offer you the most favorable price.

the machinery manufacturing industry is expected to steadily increase in 2024

We guarantee the quality of each machine and promise
to offer you the most favorable price.