Construction Machinery Is Expected to Benefit from the Pandemic
Construction machinery is expected to benefit from the advent of the global counter-cyclical adjustment era under the impact of the epidemic.
At present, the global demand for construction machinery is mainly driven by China, North America and Western Europe. According to 2018 data, the above regions account for 23.01%, 30.88% and 13.31% of the global demand by sales statistics respectively.
The major export regions of domestic construction machinery are Asia (accounting for 48%), Europe (accounting for 17%) and North America (14%). The whole machine of construction machinery is mainly exported to countries from the belt and road initiative. At the same time, there are also larger domestic exports of construction machinery parts exported to more developed regions such as the United States, Japan, Australia, South Korea, India and the United Kingdom for spare parts or local assembly.
Since the end of 2019, the outbreak of COVID-19 has brought great impact on the economic and social life of China and even the world.
Under the situation that short-term damage to the economy during the pandemic is difficult to be completely relieved, major economies have adopted active fiscal policies in the post-pandemic era. Taking this opportunity to promote major government counter-cyclical adjustment measures such as infrastructure construction investment has become a highly probable choice. Construction machinery in the post-pandemic era will benefit from the
outbreak of suppressed demand on the one hand, and will also be boosted in the economic stimulus plans of many countries on the other.
At present, Europe and the United States have become the centre spreading the epidemic, and all countries have adopted different degrees of isolation measures. It can be expected that after March, social operations in China will gain obvious recovery, while working hours in Europe and the United States will obviously decrease.
Benefiting from the resumption of work and production in the downstream, the pent-up demand in construction machinery in the early stage will be fully released. The peak demand season will come during March and June, and there is still hope to maintain a certain growth rate throughout the year. It is anticipated that the follow-up domestic counter-cyclical policies will continue, especially the investment in infrastructure construction, municipal engineering and other fields will be increased, which is expected to provide incremental demand for construction machinery.
As the COVID-19 pandemic basically draw to a close in China while continue to spread in Europe, America and other places, it can be expected that domestic demand for construction machinery will rebound rapidly while overseas demand will be restrained in the short term. At present, European and American countries have stepped up a series of stimulus plans. It is predictable that domestic and foreign demand will be released rapidly after the epidemic situation is relieved.
At present, the global demand for construction machinery is mainly driven by China, North America and Western Europe. According to 2018 data, the above regions account for 23.01%, 30.88% and 13.31% of the global demand by sales statistics respectively.
The major export regions of domestic construction machinery are Asia (accounting for 48%), Europe (accounting for 17%) and North America (14%). The whole machine of construction machinery is mainly exported to countries from the belt and road initiative. At the same time, there are also larger domestic exports of construction machinery parts exported to more developed regions such as the United States, Japan, Australia, South Korea, India and the United Kingdom for spare parts or local assembly.
Since the end of 2019, the outbreak of COVID-19 has brought great impact on the economic and social life of China and even the world.
Under the situation that short-term damage to the economy during the pandemic is difficult to be completely relieved, major economies have adopted active fiscal policies in the post-pandemic era. Taking this opportunity to promote major government counter-cyclical adjustment measures such as infrastructure construction investment has become a highly probable choice. Construction machinery in the post-pandemic era will benefit from the
outbreak of suppressed demand on the one hand, and will also be boosted in the economic stimulus plans of many countries on the other.At present, Europe and the United States have become the centre spreading the epidemic, and all countries have adopted different degrees of isolation measures. It can be expected that after March, social operations in China will gain obvious recovery, while working hours in Europe and the United States will obviously decrease.
Benefiting from the resumption of work and production in the downstream, the pent-up demand in construction machinery in the early stage will be fully released. The peak demand season will come during March and June, and there is still hope to maintain a certain growth rate throughout the year. It is anticipated that the follow-up domestic counter-cyclical policies will continue, especially the investment in infrastructure construction, municipal engineering and other fields will be increased, which is expected to provide incremental demand for construction machinery.
As the COVID-19 pandemic basically draw to a close in China while continue to spread in Europe, America and other places, it can be expected that domestic demand for construction machinery will rebound rapidly while overseas demand will be restrained in the short term. At present, European and American countries have stepped up a series of stimulus plans. It is predictable that domestic and foreign demand will be released rapidly after the epidemic situation is relieved.