Industry trends include mergers, outsourcing, equipment leasing and more foreign investment
San Francisco, CA (PRWEB) June 22, 2013
China is one of the largest manufacturing and consuming countries of building construction equipment. Over the five years through 2013, revenue for the Construction Equipment Manufacturing industry in China has been increasing at an annualized rate of 17.7%, says IBISWorld, although growth has been volatile year on year.
The industry developed strongly from 2009 to 2011 with surging domestic demand. Most of the firms in the industry invested heavily in building new plants and in acquisitions to expand product categories and production capacity. In 2012, as the whole economy slowed, market demand decreased and industry revenue declined. In 2013, capital investment is expected to increase, which will promote market demand for construction equipment. Therefore, industry revenue is set to increase to $82.2 billion.
The Construction Equipment Manufacturing industry has a low concentration level due to the large number of small and medium enterprises operating in the industry. The top four firms – Sany, Changsha Zoomlion Heavy Industry Science & Technology Development, Guangxi Liugong Machinery, and Komatsu – account for 25.8% of industry revenue. The low concentration level also reflects the diverse nature of the industry's products, says IBISWorld. Firms tend to focus on particular equipment or markets and the majority of enterprises manufacture single products or machine parts.
Many domestic brands have become more influential in the global market. Meanwhile, competing imports have decreased. Other trends developing in this industry include greater merger activity, outsourcing of spare part manufacturing, growth in equipment leasing and an increased foreign presence, says IBISWorld.
For more information, visit IBISWorld’s Construction Equipment Manufacturing industry in China industry report page.
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IBISWorld Industry Report Key Topics
The Construction Equipment Manufacturing industry manufactures the heavy equipment used on construction sites for buildings and municipal public engineering projects, such as roads, dams and drainage. Industry products include bulldozers, wheel loaders, hydraulic crawler excavators, vibratory rollers and spare parts for construction machinery.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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