Lü Ying said that the previous extensive market demand will gradually be replaced by rational emerging market demand. Now, market segmented demand is increasing, and requirements for product performance are rising. Large-tonnage cranes, large-tonnage truck-mounted cranes, rotary drilling rigs, etc. all have certain substitutions for traditional products and can change downstream users' usage habits. The ability to grasp the future market will determine enterprises' survival space.

Lü Ying stated that the characteristics of the industry determine that the construction machinery industry slightly lags behind the pace of national economic improvement, and the previous high-speed development period of construction machinery overdrew the market. In the future, the increase or decrease range of the construction machinery industry will fluctuate within a relatively small range. For example, in the future, China's monthly excavator sales will fluctuate slightly between 10,000 and 20,000 units, without major ups and downs, which is consistent with the situation in most countries internationally.

Lü Ying stated that the trend of the construction machinery industry this year is improving month by month. According to rough statistics, by October, the cumulative year-on-year decline in excavator sales for 2013 had fallen below 6%, loader sales had grown positively for several months, and road roller sales, due to the extremely sluggish market last year, had the largest increase this year, with cumulative sales growth by October reaching about 20% year-on-year. It is certain that the construction machinery market is tending to recover.

A securities analyst in Beijing also made a similar judgment on the machinery industry, believing that opportunities in highly cyclical sub-sectors of the machinery industry are not strong, while sub-sectors with growth potential will experience relatively large growth.

Construction Machinery Industry Revenue Expected to Grow 5% Year-on-Year

Securities research reports show that the performance of listed companies in the machinery industry continued to be sluggish this year. In the first three quarters of 2013, listed companies in the machinery industry achieved total operating revenue of 632.464 billion yuan, a year-on-year decrease of 5.85%. Sany Heavy Industry, Zoomlion, XCMG, LiuGong, XGMA, and Shantui all exercised strict cost control in the third quarter. The comprehensive ROE (return on equity) of the six companies in their 2013 third-quarter reports was 7.77%, slightly down year-on-year.