Construction Machinery in China
NEW
Industry forecasts for 2011 & 2016
Construction Machinery in China Study # 2333 Demand in China to grow 12.7% yearly through 2011 The construction machinery market in China expanded 21.3 percent per year GXULQJWKHODVW¿YH\HDUVDQGUHDFKHG ¥99.7 billion in 2006. Demand is projected to increase 12.7 percent per annum through 2011 to ¥181.0 billion. *URZWKZLOOEHGULYHQE\KHDOWK\JDLQV LQFRQVWUXFWLRQDFWLYLW\DVLQGXVWULDOL]Dtion efforts continue and personal and EXVLQHVVLQFRPHOHYHOVULVH)XUWKHU SULYDWL]DWLRQRIKRPHRZQHUVKLS VXVWDLQHGVWUHQJWKLQIRUHLJQLQYHVWPHQWDQGDUDSLGO\H[SDQGLQJGRPHVWLF consumer market will also contribute to construction machinery market gains.
Excavators, cranes to remain leading types ([FDYDWRUVDQG&UDQHVZLOOUHPDLQWKH most commonly used construction PDFKLQHU\LQ&KLQDRYHUWKHIRUHFDVW SHULRGEHQH¿WLQJIURPWKHLUZLGHspread use in both building and nonEXLOGLQJFRQVWUXFWLRQDFWLYLW\'HPDQG IRUFRQVWUXFWLRQH[FDYDWRUVDQGFUDQHV in China is projected to expand 12.0 percent annually through 2011 to ¥56.5 billion. Rising prices will also contribXWHWRIXWXUHYDOXHJDLQVDVWKHHTXLSment used in China becomes more technologically sophisticated. NoneWKHOHVVORDGHUVPL[HUVDQGUHODWHG HTXLSPHQWZLOOVHHHYHQIDVWHUGHPDQG growth in China. Gains in this segment ZLOOEHGULYHQE\LQFUHDVLQJYHUVDWLOLW\ of loaders and the prohibition of on-site concrete mixing in Chinese city center FRQVWUXFWLRQSURMHFWVZKLFKZLOOGULYH
April 2008 KLJKJURZWKWRWKHXQGHUGHYHORSHG rural and western regions will create VLJQL¿FDQWRSSRUWXQLWLHVIRUFRQVWUXFtion machinery suppliers.
Cranes & Elevators 31%
Industry consolidation expected
Loaders 28%
demand for premixed concrete and related mixing machinery.
The construction machinery industry in China is fragmented compared with PDWXUHLQGXVWULDOL]HGPDUNHWVDQGLV comprised of hundreds of competitors. +RZHYHUWKLVLQGXVWU\LVPRUHFRQFHQWUDWHGWKDQPRVWHTXLSPHQWPDQXIDFturing industries in China due to intense competition among both domestic and IRUHLJQSDUWLFLSDQWV,QWKHWRS ¿YHSURGXFHUVVXSSOLHGPRUHWKDQ percent of the market. Consolidation is expected as intensifying competition DQGULVLQJWHFKQRORJLFDOUHTXLUHPHQWV IRUFHVPDOODQGLQHI¿FLHQWRSHUDWLRQVWR exit the industry.
Opportunities vary by region
Study coverage
The Central-East has traditionally seen WKHKLJKHVWOHYHOVRIFRQVWUXFWLRQ machinery sales in China. This region is also expected to be the fastestgrowing regional market for construction machinery through 2011. Large VKDUHVRIRYHUDOOQDWLRQDOFRQVWUXFWLRQ expenditures will boost the economic outlook in the Central-East and sustain DYDVWFRQVWUXFWLRQPDFKLQHU\PDUNHW in this region. Demand for construction machinery in the Northwest regions ZLOODOVRVHHDVLJQL¿FDQWJURZWK WKURXJKSULPDULO\EHQH¿WLQJIURP WKHJRYHUQPHQW¶V*R:HVWVWUDWHJ\7KH H[SHFWHGH[SDQVLRQRI&KLQD¶VFXUUHQW
7KLVQHZLQGXVWU\VWXG\ Construction Machinery in ChinaLV priced at $5100. It presents historical GHPDQGGDWDIRUWKH\HDUV and 2006 plus forecasts for 2011 and E\SURGXFWPDUNHWDQGUHJLRQ,Q DGGLWLRQWKLVVWXG\FRQVLGHUVPDUNHW HQYLURQPHQWIDFWRUVHYDOXDWHVPDUNHW VKDUHDQGSUR¿OHVOHDGLQJFRPSHWLWRUV
Mixers & Related Equipment 18%
Other Types 12% Parts & Attachments 10%
Construction Machinery Demand in China, 2011 (¥181 billion)
NEW C I S F 2011 & 2016 Construction Machinery in China HINA NDUSTRY
TUDY WITH
CONTENTS/TABLES/CHARTS historical data (1996, 2001, 2006) plus forecasts for 2011 and 2016 (tables and charts by number) Introduction EXECUTIVE SUMMARY 1 Summary Table
MARKET ENVIRONMENT Economic Overview Demographic Overview Economic Overview Demographic Overview Population Trends Households Labor Force & Employment Trends Personal Income Trends Banking System & Regulations Currency Exchange Rates Industrialization & Manufacturing Trends Construction Expenditures Residential Building New Housing Improvement & Repairs Housing Stock & Living Space Nonresidential Building New Nonresidential Building Construction Improvements & Repairs Nonresidential Building Stock Nonbuilding New Nonbuilding Construction Improvements & Repairs The Five-Year Plan Legislative & Regulatory Environment Technological Trends Used Machinery World Outlook Demand Production Foreign Trade Imports Exports 1 Gross Domestic Product of China 2 Population of China by Age Cht Population of China by Age 3 Households in China by Region 4 Urban Labor Force & Employment in China, 1996-2006 Cht Urban Unemployment Rate in China, 1996-2006 5 Personal Income & Expenditure Patterns in China 6 Consumer Financial Environment in China Cht Interest Rates in China, 1996-2006 7 Chinese Currency Exchange Rates Cht Chinese Currency Exchange Rates, 1996-2006 8 Manufacturing Value Added in China 9 Construction Expenditures in China Cht Construction Expenditures in China, 2006 10 Residential Building Construction Expenditures in China 11 New Residential Housing Construction in China 12 Housing Stock & Living Space in China 13 Nonresidential Building Construction Expenditures in China 14 Nonresidential Building Stock in China 15 Nonbuilding Construction Expenditures in China 16 World Construction Machinery Demand by Region Cht World Construction Machinery Demand by Region, 2006 17 World Construction Machinery Shipments by Region Cht World Construction Machinery Shipments by Region, 2006 18 Trends in Chinese Foreign Trade 19 China Construction Machinery Imports by Source
ORECASTS FOR
Cht China Construction Machinery Imports by Source, 2006 20 China Construction Machinery Exports by Destination Cht China Construction Machinery Exports by Destination, 2006
PRODUCTS Cranes & Excavators Loaders Front-End Loaders Backhoe Loaders Mixers & Related Equipments Rollers & Related Equipments Off-Highway Trucks & Tractors Parts & Attachments 1 Construction Machinery Supply & Demand in China by Type Cht Construction Machinery Demand in China by Type, 2006 2 Crane & Excavator Supply & Demand in China Cht Excavator & Crane Demand in China, 1996-2016 3 Excavator Supply & Demand in China 4 Crane Supply & Demand in China 5 Loader Supply & Demand in China Cht Loader Demand in China, 1996-2016 6 Front Loader Supply & Demand in China 7 Backhoe Loader Supply & Demand in China 8 Mixer & Related Equipment Supply & Demand in China Cht Mixer & Related Equipment Demand in China, 1996-2016 9 Mixer Supply & Demand in China 10 Mixer Related Equipment Supply & Demand in China 11 Roller & Related Equipment Supply & Demand in China Cht Roller & Related Equipment Demand in China, 1996-2016 12 Roller Supply & Demand in China 13 Roller Related Equipment Supply & Demand in China 14 Off-Highway Truck & Tractor Supply & Demand in China 15 Tractor Supply & Demand in China 16 Off-Highway Truck Supply & Demand in China Cht Off-Highway Truck & Tractor Demand in China, 1996-2016 17 Part & Attachment Supply & Demand in China
MARKETS Residential Building Demand by Market New Residential Building Market Residential Improvement & Repair Market Demand by Structure Demand by Product Nonresidential Building Demand by Market New Residential Building Market Residential Improvement & Repair Market Demand by Structure Demand by Product Nonbuilding Demand by Market New Residential Building Market Residential Improvement & Repair Market Demand by Structure Demand by Product 1 Construction Machinery Demand in China by Market Cht Construction Machinery Demand in China by Market, 1996-2016 2 Residential Building Construction Machinery Demand in China by Market Cht Residential Building Construction Machinery Demand in China by Product, 2006 3 New Residential Building Construction Machinery Demand in China 4 Residential Improvement & Repair Construction MachineryDemand in China
5 Residential Construction Machinery Demand in China by Structure 6 Residential Construction Machinery Demand in China by Product 7 Nonresidential Construction Machinery Demand in China by Market Cht Nonresidential Building Construction Machinery Demand in China by Product, 2006 8 New Nonresidential Building Construction Machinery Demand in China 9 Nonresidential Improvement & Repair Construction Machinery Demand in China 10 Nonresidential Construction Machinery Demand in China by Structure 11 Nonresidential Construction Machinery Demand in China by Product 12 Nonbuilding Construction Machinery Demand in China Cht Nonbuilding Construction Machinery Demand in China by Product, 2006 13 New Nonbuilding Construction Machinery Demand in China 14 Nonbuilding Improvement & Repair Construction Machinery Demand in China 15 Nonbuilding Construction Machinery Demand in China by Structure 16 Nonbuilding Construction Machinery Demand in China by Product
REGIONAL TRENDS Regional Demographic & Economic Trends Population Patterns Economic Outlook Regional Construction Expenditure Regional Demand for Construction Machinery Central-North Northeast Central-East Central-South Southwest Northwest 1 Population of China by Region 2 Gross Domestic Product of China by Region 3 Construction Expenditures in China by Region 4 Construction Machinery Demand in China by Region Cht Construction Machinery Demand in China by Region, 2006 5 Central-North Region of China: Machinery Demand Cht Central-North Region of China 6 Northeast Region of China: Machinery Demand Cht Northeast Region of China 7 Central-East Region of China: Machinery Demand Cht Central-East Region of China 8 Central-South Region of China: Machinery Demand Cht Central-South Region of China 9 Southwest Region of China: Machinery Demand Cht Southwest Region of China 10 Northwest Region of China: Machinery Demand Cht Northwest Region of China
INDUSTRY STRUCTURE Industry Composition Market Share Marketing & Distribution Acquisitions & Divestitures Cooperative Agreements Foreign Participation in Chinese Market Legal & Regulatory Issues Joint Ventures Wholly Owned Foreign Enterprises 5HSUHVHQWDWLYH2I¿FHV 1 Revenue Data: Selected Construction Machinery Companies, 2006 Cht Construction Machinery Market Share in China by Company, 2006 2 Selected Acquisitions & Divestitures 3 Cooperative Agreements
Company Profiles
INDUSTRY STUDIES
N
CUSTOM RESEARCH
N
FOCUS REPORTS
INDUSTRY MARKET RESEARCH: BUSINESS INTELLIGENCE FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS
MARKETS Residential Building Demand for construction machinery in the residential building market in China is projected to increase 12.1 percent annually through 2011 to ¥28.7 billion. Growth will decelerate relative elative to the 2001-2006 period as a result of a weakening outlook for housing construction activity, but will remain strong. Excavators and cranes is the largest est market segment of residential building construction machinery demand; while loaders will experience the fastest growth in the forecast period, benefiting from the prohibition of on-site concrete mixing in urban areas.
TABLE III-9 MIXER SUPPLY & DEMAND IN CHINA (billion yuan) Item Construction Expenditures (bil 2005¥) ¥ mixer /000¥ construction Mixer Demand net exports
1996
2001
2006
2011
2016
934 1.7
1688 2.1
4200 2.3
6400 2.8
9250 3.3
SAMPLE TABLE 3.6 9.6 Historical data17.7 for 30.8 -0.7 0.6 1.0 1.4 1996, 200110.2and18.7 200632.2 0.4 2.9 0.2 2.4 9.4 17.3 29.9 as forecasts 0.1 well 0.3 as 0.5 0.9 1.5 0.1 0.2 0.3 0.5 for 2011 and 2016 0.8 1.6 -1.2
Mixer Shipments Concrete Asphalt Others % mixers Mixer & Related Equipment Demand
72.7 2.2
56.3 6.4
54.5 17.6
54.1 32.7
53.8 57.2
COMPANY PROFILES
SAMPLE PAGE Explanations that support each table’s data and forecasts
Compared with nonresidential ntial building and nonbuilding markets, demand for construction machinery in residential idential building segment is relatively low, accounting only 17 percent of totall sales l in i 2006. 2006 This Thi is i mainly i l due d to the h low l involvement of construction equipment in improvements and repairs -- which accounts for a relatively large proportion of residential building expenditures in China -- and single-family home construction. Demand by Market Overall levels of residential construction machinery demand in the residential building segment will be supported by the large number of housing units produced each year in China, as well as by the growing stock of existing homes that require improvement and repair. In addition, continuing industrialization in China as well as government efforts to promote higher levels of mechanization of rising labor costs will stimulate more usage of machinery in construction activities. Although some residential improvement and repair projects involve construction machinery, new residential building construction is the dominant market for construction machinery in China, accounting for over 95 percent of aggregate demand in 2006. However, the labor-intensive housing alteration market will benefit more from the continuing industrialization and hence see above-average growth in machinery sales going forward, increasing 14.9 percent annually through 2011 to ¥1.4 billion, although starting from a low historical base.
Xuzhou Construction Machinery Group Company Limited Xuzhou Economic Development Zone Xuzhou, Jiangsu 221004 CHINA 86-516-8575-3517 517 http://www.xcmg.com mg.com
COMPANY PROFILES Presented for 30+ competitors in the Chinese industry
Sales: ¥20.3 billion illion [US$2.5 billion] (2006) China Sales: ¥18.3 billion [US$2.3 billion] (2006) Employment: 20,000 (estimated)
Key Products: compaction machinery, road surfacing machinery, loading mamachinery, road building cranes andd excavators ildi machinery, hi t
CHART V-1 CONSTRUCTION MACHINERY DEMAND IN CHINA BY REGION, 2006 (¥99.7 billion)
International Contact: Mr. Xianliang Sha, General Manager of Xuzhou Construction Machinery Group Import/Export Company Ifjmpohkjboh
Xuzhou Construction Machinery Group (XCMG) is a state-owned developer, manufacturer and exporter of road surfacing machinery, loading machinery, road building machinery and cranes. In March 2007, Carlyle Group, a US-based private equity firm, announced plans to purchase a 45 percent stake in XCMG after an earlier attempt to buy 85 percent of the Company was turned down by the Chinese regulators. As of February 2008, Carlyle was still waiting for regulatory approval of the deal. The Company’s construction equipment includes compaction machinery, road surfacing machinery, loading machinery, road building machinery, cranes and excavators. XCMG’s compaction machinery includes full hydraulic single drum vibratory rollers, tandem vibratory rollers, mechanical drive single drum vibratory rollers, pneumatic rollers, static rollers and vibratory tampers. Among the Company’s road surfacing machinery are asphalt concrete transfer vehicles, asphalt concrete pavers, stabilized material pavers and cold milling machines. XCMG’s loading machinery products include bulldozers and wheel loaders. The Company’s road building machinery encompasses motor graders and concrete mixing plants. XCMG’s cranes include truck, all-terrain mobile, hydraulic mobile, hydraulic tire, hydraulic crawler and truck-mounted varieties. For example,
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SAMPLE CHART Data illustrated with the aid of nearly 90 tables and charts
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SUMMARY TABLE
CONSTRUCTION MACHINERY SUPPLY & DEMAND IN CHINA (billion yuan)
% Annual Growth Item Construction Expenditures (bil 2005¥) ¥ machinery/000¥ construction Construction Machinery Demand Excavators & Cranes Loaders Mixers & Related Equipments Rollers & Related Equipments Off-Highway Trucks & Tractors Parts & Attachments + net exports Construction Machinery Shipments price deflator (2005=100) Construction Machinery Demand (bil 2005¥) ¥/US$ Construction Machinery Demand (bil US$)
2001
2006
2011
2016
06/01
11/06
TABLE III-2 EXCAVATOR & CRANE SUPPLY & DEMAND IN CHINA (billion yuan) Item
1996
2001
2006
2011
2016
2011
2016
Construction Expenditures (bil 2005¥) ¥ excavator & crane/000¥ construction Excavator & Crane Demand Excavators Cranes net exports Excavator & Crane Shipments % excavators & cranes Construction Machinery Demand
TABLE III-5 LOADER SUPPLY & DEMAND IN CHINA (billion yuan) Item Construction Expenditures (bil 2005¥) ¥ loader/000¥ construction Loader Demand Front-End Loaders Backhoe Loaders net exports Loader Shipments % loaders Construction Machinery Demand
1996
2001
2006
TABLE IV-2 RESIDENTIAL BUILDING CONSTRUCTION MACHINERY DEMAND IN CHINA BY APPLICATION (billion yuan) Item
1996
2001
2006
2011
2016
Res Bldg Constr Expend (bil 2005¥) ¥ demand/000¥ construction Res Bldg Constr Machinery Demand New Construction Improvements & Repairs % residential building Total Construction Machinery Demand
TABLE IV-8 NEW NONRESIDENTIAL BUILDING CONSTRUCTION MACHINERY DEMAND IN CHINA (billion yuan) Item New Nonres Bldg Constr Expend (bil 2005¥) ¥ demand/000¥ construction New Nonres Bldg Constr Machinery Demand % new Nonres Bldg Construction Machinery Demand
1996
2001
2006
2011
2016
TABLE V-3 CONSTRUCTION EXPENDITURES IN CHINA BY REGION (billion 2005 yuan) Item
1996
2001
2006
2011
2016
2011
2016
Gross Domestic Product ¥ constr expend/000¥ GDP Total Construction Expenditures Central-North Northeast Central-East Central-South Southwest Northwest
TABLE V-4 CONSTRUCTION MACHINERY DEMAND IN CHINA BY REGION (billion yuan) Item Construction Expenditures ¥ machinery/000¥ construction Construction Machinery Demand Central-North Northeast Central-East Central-South Southwest Northwest
1996
2001
2006
TABLE V-5 CENTRAL-NORTH REGION OF CHINA: CONSTRUCTION MACHINERY DEMAND (billion yuan) Item Central-North Constr Expend (bil 2005¥) ¥ machinery/000¥ construction Central-North Constr Machinery Demand By Product: Excavators & Cranes Loaders Mixers & Related Equipment Rollers & Related Equipment Off-Highway Trucks & Tractors Parts & Attachments By Market: Residential Building Nonresidential Building Nonbuilding % Central-North Constr Machinery Demand in China
1996
2001
2006
2011
2016
Industry forecasts for 2011 & 2016
Construction Machinery in China Study # 2333 Demand in China to grow 12.7% yearly through 2011 The construction machinery market in China expanded 21.3 percent per year GXULQJWKHODVW¿YH\HDUVDQGUHDFKHG ¥99.7 billion in 2006. Demand is projected to increase 12.7 percent per annum through 2011 to ¥181.0 billion. *URZWKZLOOEHGULYHQE\KHDOWK\JDLQV LQFRQVWUXFWLRQDFWLYLW\DVLQGXVWULDOL]Dtion efforts continue and personal and EXVLQHVVLQFRPHOHYHOVULVH)XUWKHU SULYDWL]DWLRQRIKRPHRZQHUVKLS VXVWDLQHGVWUHQJWKLQIRUHLJQLQYHVWPHQWDQGDUDSLGO\H[SDQGLQJGRPHVWLF consumer market will also contribute to construction machinery market gains.
Excavators, cranes to remain leading types ([FDYDWRUVDQG&UDQHVZLOOUHPDLQWKH most commonly used construction PDFKLQHU\LQ&KLQDRYHUWKHIRUHFDVW SHULRGEHQH¿WLQJIURPWKHLUZLGHspread use in both building and nonEXLOGLQJFRQVWUXFWLRQDFWLYLW\'HPDQG IRUFRQVWUXFWLRQH[FDYDWRUVDQGFUDQHV in China is projected to expand 12.0 percent annually through 2011 to ¥56.5 billion. Rising prices will also contribXWHWRIXWXUHYDOXHJDLQVDVWKHHTXLSment used in China becomes more technologically sophisticated. NoneWKHOHVVORDGHUVPL[HUVDQGUHODWHG HTXLSPHQWZLOOVHHHYHQIDVWHUGHPDQG growth in China. Gains in this segment ZLOOEHGULYHQE\LQFUHDVLQJYHUVDWLOLW\ of loaders and the prohibition of on-site concrete mixing in Chinese city center FRQVWUXFWLRQSURMHFWVZKLFKZLOOGULYH
April 2008 KLJKJURZWKWRWKHXQGHUGHYHORSHG rural and western regions will create VLJQL¿FDQWRSSRUWXQLWLHVIRUFRQVWUXFtion machinery suppliers.
Cranes & Elevators 31%
Industry consolidation expected
Loaders 28%
demand for premixed concrete and related mixing machinery.
The construction machinery industry in China is fragmented compared with PDWXUHLQGXVWULDOL]HGPDUNHWVDQGLV comprised of hundreds of competitors. +RZHYHUWKLVLQGXVWU\LVPRUHFRQFHQWUDWHGWKDQPRVWHTXLSPHQWPDQXIDFturing industries in China due to intense competition among both domestic and IRUHLJQSDUWLFLSDQWV,QWKHWRS ¿YHSURGXFHUVVXSSOLHGPRUHWKDQ percent of the market. Consolidation is expected as intensifying competition DQGULVLQJWHFKQRORJLFDOUHTXLUHPHQWV IRUFHVPDOODQGLQHI¿FLHQWRSHUDWLRQVWR exit the industry.
Opportunities vary by region
Study coverage
The Central-East has traditionally seen WKHKLJKHVWOHYHOVRIFRQVWUXFWLRQ machinery sales in China. This region is also expected to be the fastestgrowing regional market for construction machinery through 2011. Large VKDUHVRIRYHUDOOQDWLRQDOFRQVWUXFWLRQ expenditures will boost the economic outlook in the Central-East and sustain DYDVWFRQVWUXFWLRQPDFKLQHU\PDUNHW in this region. Demand for construction machinery in the Northwest regions ZLOODOVRVHHDVLJQL¿FDQWJURZWK WKURXJKSULPDULO\EHQH¿WLQJIURP WKHJRYHUQPHQW¶V*R:HVWVWUDWHJ\7KH H[SHFWHGH[SDQVLRQRI&KLQD¶VFXUUHQW
7KLVQHZLQGXVWU\VWXG\ Construction Machinery in ChinaLV priced at $5100. It presents historical GHPDQGGDWDIRUWKH\HDUV and 2006 plus forecasts for 2011 and E\SURGXFWPDUNHWDQGUHJLRQ,Q DGGLWLRQWKLVVWXG\FRQVLGHUVPDUNHW HQYLURQPHQWIDFWRUVHYDOXDWHVPDUNHW VKDUHDQGSUR¿OHVOHDGLQJFRPSHWLWRUV
Mixers & Related Equipment 18%
Other Types 12% Parts & Attachments 10%
Construction Machinery Demand in China, 2011 (¥181 billion)
NEW C I S F 2011 & 2016 Construction Machinery in China HINA NDUSTRY
TUDY WITH
CONTENTS/TABLES/CHARTS historical data (1996, 2001, 2006) plus forecasts for 2011 and 2016 (tables and charts by number) Introduction EXECUTIVE SUMMARY 1 Summary Table
MARKET ENVIRONMENT Economic Overview Demographic Overview Economic Overview Demographic Overview Population Trends Households Labor Force & Employment Trends Personal Income Trends Banking System & Regulations Currency Exchange Rates Industrialization & Manufacturing Trends Construction Expenditures Residential Building New Housing Improvement & Repairs Housing Stock & Living Space Nonresidential Building New Nonresidential Building Construction Improvements & Repairs Nonresidential Building Stock Nonbuilding New Nonbuilding Construction Improvements & Repairs The Five-Year Plan Legislative & Regulatory Environment Technological Trends Used Machinery World Outlook Demand Production Foreign Trade Imports Exports 1 Gross Domestic Product of China 2 Population of China by Age Cht Population of China by Age 3 Households in China by Region 4 Urban Labor Force & Employment in China, 1996-2006 Cht Urban Unemployment Rate in China, 1996-2006 5 Personal Income & Expenditure Patterns in China 6 Consumer Financial Environment in China Cht Interest Rates in China, 1996-2006 7 Chinese Currency Exchange Rates Cht Chinese Currency Exchange Rates, 1996-2006 8 Manufacturing Value Added in China 9 Construction Expenditures in China Cht Construction Expenditures in China, 2006 10 Residential Building Construction Expenditures in China 11 New Residential Housing Construction in China 12 Housing Stock & Living Space in China 13 Nonresidential Building Construction Expenditures in China 14 Nonresidential Building Stock in China 15 Nonbuilding Construction Expenditures in China 16 World Construction Machinery Demand by Region Cht World Construction Machinery Demand by Region, 2006 17 World Construction Machinery Shipments by Region Cht World Construction Machinery Shipments by Region, 2006 18 Trends in Chinese Foreign Trade 19 China Construction Machinery Imports by Source
ORECASTS FOR
Cht China Construction Machinery Imports by Source, 2006 20 China Construction Machinery Exports by Destination Cht China Construction Machinery Exports by Destination, 2006
PRODUCTS Cranes & Excavators Loaders Front-End Loaders Backhoe Loaders Mixers & Related Equipments Rollers & Related Equipments Off-Highway Trucks & Tractors Parts & Attachments 1 Construction Machinery Supply & Demand in China by Type Cht Construction Machinery Demand in China by Type, 2006 2 Crane & Excavator Supply & Demand in China Cht Excavator & Crane Demand in China, 1996-2016 3 Excavator Supply & Demand in China 4 Crane Supply & Demand in China 5 Loader Supply & Demand in China Cht Loader Demand in China, 1996-2016 6 Front Loader Supply & Demand in China 7 Backhoe Loader Supply & Demand in China 8 Mixer & Related Equipment Supply & Demand in China Cht Mixer & Related Equipment Demand in China, 1996-2016 9 Mixer Supply & Demand in China 10 Mixer Related Equipment Supply & Demand in China 11 Roller & Related Equipment Supply & Demand in China Cht Roller & Related Equipment Demand in China, 1996-2016 12 Roller Supply & Demand in China 13 Roller Related Equipment Supply & Demand in China 14 Off-Highway Truck & Tractor Supply & Demand in China 15 Tractor Supply & Demand in China 16 Off-Highway Truck Supply & Demand in China Cht Off-Highway Truck & Tractor Demand in China, 1996-2016 17 Part & Attachment Supply & Demand in China
MARKETS Residential Building Demand by Market New Residential Building Market Residential Improvement & Repair Market Demand by Structure Demand by Product Nonresidential Building Demand by Market New Residential Building Market Residential Improvement & Repair Market Demand by Structure Demand by Product Nonbuilding Demand by Market New Residential Building Market Residential Improvement & Repair Market Demand by Structure Demand by Product 1 Construction Machinery Demand in China by Market Cht Construction Machinery Demand in China by Market, 1996-2016 2 Residential Building Construction Machinery Demand in China by Market Cht Residential Building Construction Machinery Demand in China by Product, 2006 3 New Residential Building Construction Machinery Demand in China 4 Residential Improvement & Repair Construction MachineryDemand in China
5 Residential Construction Machinery Demand in China by Structure 6 Residential Construction Machinery Demand in China by Product 7 Nonresidential Construction Machinery Demand in China by Market Cht Nonresidential Building Construction Machinery Demand in China by Product, 2006 8 New Nonresidential Building Construction Machinery Demand in China 9 Nonresidential Improvement & Repair Construction Machinery Demand in China 10 Nonresidential Construction Machinery Demand in China by Structure 11 Nonresidential Construction Machinery Demand in China by Product 12 Nonbuilding Construction Machinery Demand in China Cht Nonbuilding Construction Machinery Demand in China by Product, 2006 13 New Nonbuilding Construction Machinery Demand in China 14 Nonbuilding Improvement & Repair Construction Machinery Demand in China 15 Nonbuilding Construction Machinery Demand in China by Structure 16 Nonbuilding Construction Machinery Demand in China by Product
REGIONAL TRENDS Regional Demographic & Economic Trends Population Patterns Economic Outlook Regional Construction Expenditure Regional Demand for Construction Machinery Central-North Northeast Central-East Central-South Southwest Northwest 1 Population of China by Region 2 Gross Domestic Product of China by Region 3 Construction Expenditures in China by Region 4 Construction Machinery Demand in China by Region Cht Construction Machinery Demand in China by Region, 2006 5 Central-North Region of China: Machinery Demand Cht Central-North Region of China 6 Northeast Region of China: Machinery Demand Cht Northeast Region of China 7 Central-East Region of China: Machinery Demand Cht Central-East Region of China 8 Central-South Region of China: Machinery Demand Cht Central-South Region of China 9 Southwest Region of China: Machinery Demand Cht Southwest Region of China 10 Northwest Region of China: Machinery Demand Cht Northwest Region of China
INDUSTRY STRUCTURE Industry Composition Market Share Marketing & Distribution Acquisitions & Divestitures Cooperative Agreements Foreign Participation in Chinese Market Legal & Regulatory Issues Joint Ventures Wholly Owned Foreign Enterprises 5HSUHVHQWDWLYH2I¿FHV 1 Revenue Data: Selected Construction Machinery Companies, 2006 Cht Construction Machinery Market Share in China by Company, 2006 2 Selected Acquisitions & Divestitures 3 Cooperative Agreements
Company Profiles
INDUSTRY STUDIES
N
CUSTOM RESEARCH
N
FOCUS REPORTS
INDUSTRY MARKET RESEARCH: BUSINESS INTELLIGENCE FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS
MARKETS Residential Building Demand for construction machinery in the residential building market in China is projected to increase 12.1 percent annually through 2011 to ¥28.7 billion. Growth will decelerate relative elative to the 2001-2006 period as a result of a weakening outlook for housing construction activity, but will remain strong. Excavators and cranes is the largest est market segment of residential building construction machinery demand; while loaders will experience the fastest growth in the forecast period, benefiting from the prohibition of on-site concrete mixing in urban areas.
TABLE III-9 MIXER SUPPLY & DEMAND IN CHINA (billion yuan) Item Construction Expenditures (bil 2005¥) ¥ mixer /000¥ construction Mixer Demand net exports
1996
2001
2006
2011
2016
934 1.7
1688 2.1
4200 2.3
6400 2.8
9250 3.3
SAMPLE TABLE 3.6 9.6 Historical data17.7 for 30.8 -0.7 0.6 1.0 1.4 1996, 200110.2and18.7 200632.2 0.4 2.9 0.2 2.4 9.4 17.3 29.9 as forecasts 0.1 well 0.3 as 0.5 0.9 1.5 0.1 0.2 0.3 0.5 for 2011 and 2016 0.8 1.6 -1.2
Mixer Shipments Concrete Asphalt Others % mixers Mixer & Related Equipment Demand
72.7 2.2
56.3 6.4
54.5 17.6
54.1 32.7
53.8 57.2
COMPANY PROFILES
SAMPLE PAGE Explanations that support each table’s data and forecasts
Compared with nonresidential ntial building and nonbuilding markets, demand for construction machinery in residential idential building segment is relatively low, accounting only 17 percent of totall sales l in i 2006. 2006 This Thi is i mainly i l due d to the h low l involvement of construction equipment in improvements and repairs -- which accounts for a relatively large proportion of residential building expenditures in China -- and single-family home construction. Demand by Market Overall levels of residential construction machinery demand in the residential building segment will be supported by the large number of housing units produced each year in China, as well as by the growing stock of existing homes that require improvement and repair. In addition, continuing industrialization in China as well as government efforts to promote higher levels of mechanization of rising labor costs will stimulate more usage of machinery in construction activities. Although some residential improvement and repair projects involve construction machinery, new residential building construction is the dominant market for construction machinery in China, accounting for over 95 percent of aggregate demand in 2006. However, the labor-intensive housing alteration market will benefit more from the continuing industrialization and hence see above-average growth in machinery sales going forward, increasing 14.9 percent annually through 2011 to ¥1.4 billion, although starting from a low historical base.
Xuzhou Construction Machinery Group Company Limited Xuzhou Economic Development Zone Xuzhou, Jiangsu 221004 CHINA 86-516-8575-3517 517 http://www.xcmg.com mg.com
COMPANY PROFILES Presented for 30+ competitors in the Chinese industry
Sales: ¥20.3 billion illion [US$2.5 billion] (2006) China Sales: ¥18.3 billion [US$2.3 billion] (2006) Employment: 20,000 (estimated)
Key Products: compaction machinery, road surfacing machinery, loading mamachinery, road building cranes andd excavators ildi machinery, hi t
CHART V-1 CONSTRUCTION MACHINERY DEMAND IN CHINA BY REGION, 2006 (¥99.7 billion)
International Contact: Mr. Xianliang Sha, General Manager of Xuzhou Construction Machinery Group Import/Export Company Ifjmpohkjboh
Xuzhou Construction Machinery Group (XCMG) is a state-owned developer, manufacturer and exporter of road surfacing machinery, loading machinery, road building machinery and cranes. In March 2007, Carlyle Group, a US-based private equity firm, announced plans to purchase a 45 percent stake in XCMG after an earlier attempt to buy 85 percent of the Company was turned down by the Chinese regulators. As of February 2008, Carlyle was still waiting for regulatory approval of the deal. The Company’s construction equipment includes compaction machinery, road surfacing machinery, loading machinery, road building machinery, cranes and excavators. XCMG’s compaction machinery includes full hydraulic single drum vibratory rollers, tandem vibratory rollers, mechanical drive single drum vibratory rollers, pneumatic rollers, static rollers and vibratory tampers. Among the Company’s road surfacing machinery are asphalt concrete transfer vehicles, asphalt concrete pavers, stabilized material pavers and cold milling machines. XCMG’s loading machinery products include bulldozers and wheel loaders. The Company’s road building machinery encompasses motor graders and concrete mixing plants. XCMG’s cranes include truck, all-terrain mobile, hydraulic mobile, hydraulic tire, hydraulic crawler and truck-mounted varieties. For example,
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SAMPLE CHART Data illustrated with the aid of nearly 90 tables and charts
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SUMMARY TABLE
CONSTRUCTION MACHINERY SUPPLY & DEMAND IN CHINA (billion yuan)
% Annual Growth Item Construction Expenditures (bil 2005¥) ¥ machinery/000¥ construction Construction Machinery Demand Excavators & Cranes Loaders Mixers & Related Equipments Rollers & Related Equipments Off-Highway Trucks & Tractors Parts & Attachments + net exports Construction Machinery Shipments price deflator (2005=100) Construction Machinery Demand (bil 2005¥) ¥/US$ Construction Machinery Demand (bil US$)
2001
2006
2011
2016
06/01
11/06
TABLE III-2 EXCAVATOR & CRANE SUPPLY & DEMAND IN CHINA (billion yuan) Item
1996
2001
2006
2011
2016
2011
2016
Construction Expenditures (bil 2005¥) ¥ excavator & crane/000¥ construction Excavator & Crane Demand Excavators Cranes net exports Excavator & Crane Shipments % excavators & cranes Construction Machinery Demand
TABLE III-5 LOADER SUPPLY & DEMAND IN CHINA (billion yuan) Item Construction Expenditures (bil 2005¥) ¥ loader/000¥ construction Loader Demand Front-End Loaders Backhoe Loaders net exports Loader Shipments % loaders Construction Machinery Demand
1996
2001
2006
TABLE IV-2 RESIDENTIAL BUILDING CONSTRUCTION MACHINERY DEMAND IN CHINA BY APPLICATION (billion yuan) Item
1996
2001
2006
2011
2016
Res Bldg Constr Expend (bil 2005¥) ¥ demand/000¥ construction Res Bldg Constr Machinery Demand New Construction Improvements & Repairs % residential building Total Construction Machinery Demand
TABLE IV-8 NEW NONRESIDENTIAL BUILDING CONSTRUCTION MACHINERY DEMAND IN CHINA (billion yuan) Item New Nonres Bldg Constr Expend (bil 2005¥) ¥ demand/000¥ construction New Nonres Bldg Constr Machinery Demand % new Nonres Bldg Construction Machinery Demand
1996
2001
2006
2011
2016
TABLE V-3 CONSTRUCTION EXPENDITURES IN CHINA BY REGION (billion 2005 yuan) Item
1996
2001
2006
2011
2016
2011
2016
Gross Domestic Product ¥ constr expend/000¥ GDP Total Construction Expenditures Central-North Northeast Central-East Central-South Southwest Northwest
TABLE V-4 CONSTRUCTION MACHINERY DEMAND IN CHINA BY REGION (billion yuan) Item Construction Expenditures ¥ machinery/000¥ construction Construction Machinery Demand Central-North Northeast Central-East Central-South Southwest Northwest
1996
2001
2006
TABLE V-5 CENTRAL-NORTH REGION OF CHINA: CONSTRUCTION MACHINERY DEMAND (billion yuan) Item Central-North Constr Expend (bil 2005¥) ¥ machinery/000¥ construction Central-North Constr Machinery Demand By Product: Excavators & Cranes Loaders Mixers & Related Equipment Rollers & Related Equipment Off-Highway Trucks & Tractors Parts & Attachments By Market: Residential Building Nonresidential Building Nonbuilding % Central-North Constr Machinery Demand in China
1996
2001
2006
2011
2016
