**Abstract**
Recently, the Global Construction Machinery Industry Conference and the Top 50 Summit were held in Beijing. Industry leaders from around the world, alongside top Chinese executives, gathered to discuss economic trends in China and globally, as well as long-term industry developments. The construction machinery sector, however, is facing a deep downturn.
Profit margins have dropped significantly. According to Zhan Chunxin, CEO of Zoomlion, the industry is still largely traditional manufacturing with global overcapacity. In China, when economic growth slows below double digits, overcapacity becomes a serious issue.
In 2013, the global political and economic landscape was turbulent, and the construction machinery industry, closely tied to infrastructure development, faced unprecedented challenges. Major manufacturers saw their profits fall by 42% in the first half of the year. Companies responded by accelerating inventory reduction and cost-cutting, which only worsened the situation.
China remains the largest construction machinery market, with annual sales exceeding 500 billion yuan (about 80 billion USD). However, since 2012, the sector has been under pressure. Despite this, the concept of “new urbanization†has sparked optimism, signaling a potential new wave of investment. More investors are turning their attention to China’s vast market.
As traditional advantages like demographic dividends and trade shifts, China is pushing for innovation and industrial upgrades to move up the global value chain. Since the 2008 financial crisis, Chinese construction machinery firms have accelerated their integration into the global market through technological advancements. For example, Xugong acquired German company Shi Weiying, Zoomlion took over CIFA, and Sany Heavy Industry bought a major European manufacturer. These moves reflect the trend of Chinese companies leveraging global resources and innovation.
At the conference, Su Zimeng, Secretary-General of the China Construction Machinery Industry Association, emphasized that China will remain a key driver of global economic recovery. As the global economy adjusts, improvements in China’s industrial ecosystem, changing market dynamics, and evolving growth patterns will help the industry achieve higher-quality development.
Two parallel forums—Global Excavator Summit and China Top 100 Summits—brought together industry leaders, users, and stakeholders to address critical issues and promote sustainable development. Many industry players believe that a slower growth rate doesn’t mean a shrinking market, but rather an opportunity for companies to strengthen internal capabilities.
A dealer in North China noted that equipment usage has stabilized or even slightly increased compared to the sharp decline seen in previous years. Zhan Chunxin also highlighted that the industry contraction period is a time for companies to reorganize. Since late 2012, Zoomlion adjusted its strategy, focusing on quality management and scale growth. By mid-2013, the company saw significant improvements, with sales and profits rising sharply.
The list of the top 50 global construction machinery manufacturers was also announced. Total sales reached $199.765 billion, though growth slowed compared to previous years. Caterpillar ranked first, while Xugong, Zoomlion, and Sany made it into the top ten. While some companies saw growth, many struggled, especially in Asia.
Despite these challenges, leading Chinese companies continue to grow. Xugong, for example, expanded its global footprint, opening factories in Brazil, Poland, and Other countries. Its mobile crane market share remains number one worldwide. Similarly, Anhui Heli reported strong growth, driven by demand in the logistics and road construction sectors.
As urbanization continues, there's increasing demand for specialized machinery, such as truck-mounted cranes. Industry analysts suggest that engineering machinery companies should focus more on the needs of urban development and the growing trend of mechanization.
Overall, the construction machinery industry is navigating a difficult phase, but innovation, globalization, and strategic adaptation offer hope for future growth.
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