bauma China 2012: Strong Chinese market

Despite a slight slowing down in the pace of economic growth in China, this large country is still a veritable "hot spot" in the global construction sector.

On November 27 to 30, 2012 bauma China, the International Trade Fair for Construction Machinery, Building Material Machines, Construction Vehicles and Equipment, takes place in Shanghai. Despite a slight slowing down in the pace of economic growth in China, this large country is still a veritable "hot spot" in the global construction sector. Supported by a booming domestic market, the Chinese construction machinery manufacturers are also making good ground on the international front.
 
Since 2010 the world’s largest domestic market in the construction sector has been in China. And, according to estimates by the German foreign trade organization, Germany Trade & Invest (GTAI), in the coming years the People’s Republic is set to further extend its lead over the second-largest internal market, the United States of America. After all, the Chinese government is again tackling gigantic infrastructure projects in its current five-year program, running from 2011 to 2015. For example, by 2015 they are planning to build 36 million social housing units, at an estimated cost of 169 billion euros.
 
Boosted by a burgeoning domestic market, the Chinese construction machinery manufacturers have grown strongly in recent years. According to a recent report on the global construction machinery market by the international management consultancy Oliver Wyman, the Chinese manufacturer XCMG, for example, was able to double its turnover between 2004 and 2010, while Zoomlion managed to quadruple its sales. During the same period the broad-based Sany Group succeeded in increasing its sales five-fold to around five billion US dollars. As a result, these three major firms are in the Top Ten of the global construction machinery market.
 
In China itself demand for construction machinery in the coming years is set to continue growing strongly. A forecast by the China Construction Machinery Association (CCMA), for example, predicts that in 2015, 100,000 cranes will be sold in the People’s Republic. That would be an increase of over 130% on the 43,400 units sold in 2010. High growth rates are also predicted for concrete mixing vehicles (+98%) and concrete pump vehicles (+88%). And, in contrast to the 3,019 asphalt pavers that were sold in 2010, in 2015 sales will reach around 5,000 (+66%).
 
What opportunities do Western manufacturers have in this booming construction machinery market in China? Tom Sieber, co-author of the Oliver Wyman reports: "Products from Western manufacturers are best suited to the premium segment of the market in China." Also, construction suppliers from Germany have good chances, as Corinne Abele, a representative of GTAI in Beijing, confirms: "International construction suppliers have been represented in China for many years. The growing body of legislation as regards energy-efficiency and the themes of sustainable construction and renovation and modernization are currently opening up new groups of customers for these companies." Accordingly, demand for special-purpose machinery, energy-efficient building systems, modern domestic engineering technology and insulation materials is particularly strong.
 
For exhibitors at bauma China, this is an excellent background for successfully presenting their products and innovations in a market eager to invest in capital equipment.

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