According to analysis by industry insiders, the construction machinery industry is undergoing the test of a "deep adjustment period" such as severe overcapacity, sluggish market demand, and sharp decline in profits. From a long-term perspective, construction machinery is mainly driven by two factors, population and economic growth, which are reflected in indicators. The long-term potential indicator of construction machinery looks at the urbanization rate. China’s urbanization rate has just exceeded 55%. From the experience of developed countries, a country’s urbanization rate will not end until 75% to 80% before the end of the large-scale construction process. China's current urbanization rate is increasing by about 1% per year. Based on this estimate, China's construction machinery is still facing growth in about 20 years. The domestic construction machinery industry is greatly affected by cycles, and it will take some time to destock.

　　So, what impact does the domestic and international environment have on construction machinery?/p>

The battle of transformation: Made in China will usher in the golden five years

On May 28, 2016, in the "War of Transformation: Made in China Start Again", Wu Xiaobo pointed out that with Internet tools, new craftsmanship and capital operation, China's manufacturing industry will achieve transformation and upgrading in the next five years. It will be five years of gold made in China. And in this transformation class, you will often hear this kind of stories, and it seems to be confirming the arrival of the golden five years: a company doing foreign trade foundry has spent 5 years making a headset, not only It was hailed as an innovative product of the year by the Wall Street Journal and other media, and it also walked into Apple’s stores; a retail industry achieved billions of billions in sales last year through innovation; a clothing company is building a flexible production line, including Ma Yun, Liu Chuanzhi and other custom clothing...

For the transformation and upgrading of Made in China, the private sector is working hard to promote it, and the country's top-level design is pushing it. On May 8, 2015, the State Council formally issued "Made in China 2025", which is the action plan of the Chinese government for the first ten years of implementing the strategy of making a strong country by manufacturing. A year later, the General Office of the State Council issued the "Several Opinions on Carrying out the "Three Products" Special Actions in the Consumer Goods Industry to Create a Good Market Environment", proposing to implement the Party Central Committee and the State Council on promoting supply-side structural reforms and promoting stable industrial growth and structural adjustments. The decision-making and deployment of increasing efficiency and building a manufacturing power will better meet and create consumer demand, continue to strengthen the basic role of consumption in driving the economy, and promote the consumer goods industry to move towards the mid-to-high end.

Industry 4.0 will increase China's production efficiency by 25%

In the "13th Five-Year Plan" formulated by the Chinese government, Industry 4.0 and the "Made in China 2025" strategy are listed as top priorities. Two recent reports by the Boston Consulting Group (hereinafter referred to as BCG) show that the use of new industry 4.0 technologies will increase the production efficiency of Chinese companies by 25%, which can create an additional 6 trillion yuan in added value and affect millions of employees work.