Excavators are hailed as the "crown jewel" of the construction machinery industry, not only because they are widely used in equipment manufacturing and hold a pivotal position in the industry, but also because there is a famous international "excavator leading index" that can often accurately predict the ups and downs of a country's or region's economic development a quarter or even half a year in advance.

　　For example, in Japan, economists use the order volume of Komatsu excavators, a well-known Japanese brand, to judge the economic trend for the year and provide decision-making suggestions to the government and enterprises.

　　So, after the adjustment since 2008, how will the domestic economy perform this year? With this question in mind, the reporter recently attended the Sany Group spring excavator order fair held in Yantai. At the event, the reporter met Xiang Ru'an, Vice President of Sany Group and General Manager of Sany Heavy Machinery.

　　Orders indicate economic vitality

　　Sany Group is a well-known national enterprise in China, integrating research and development, production, and sales of excavating machinery. The company is located in the Yangtze River Delta coastal area known as the "Golden Triangle," with two major manufacturing bases in Shanghai Lingang and Jiangsu Kunshan, and has the world's largest annual production capacity. In recent years, Sany Heavy Machinery has achieved leapfrog development with an astonishing average annual growth rate of over 100%. Sany excavators have become the top brand of domestic excavators.

　　Xiang Ru'an introduced that at this Yantai spring order fair, Sany's dealer Hongtong Group secured orders for more than 200 units. Together with orders from the order fairs in Guangzhou and Guiyang, Sany had over 1,000 units in orders right after the Spring Festival, truly achieving a "good start" for the year.

　　In terms of total domestic excavator sales, the first decline in 10 years occurred in May 2011. After 24 months, positive growth was achieved in April 2013, and by the fourth quarter of last year, a year-on-year growth of 20% was realized. Xiang Ru'an analyzed that this indicates that after the 2008 international financial crisis, the domestic economy began to become active last year. In addition, two other indicators provide side verification. First, the number of inquiries: according to statistics on effective inquiries from excavator customers through the website, there was a 5% increase in the second quarter of last year, a 10% increase in the third quarter, and explosive growth of 40% in the fourth quarter. Second, the operating rate: in December 2013, the excavator operating rate reached 166 hours, the highest in nearly three years.

   　Transportation stimulates consumption

　　Xiang Ru'an is quite confident about this year's economic situation. He said this is not only because excavator sales have increased, indicating economic recovery, but more importantly, the positive signals released by the Third Plenary Session of the 18th CPC Central Committee regarding economic policies will also be concretely reflected this year. The central government is actively promoting streamlined administration and decentralization, with the government stepping back and market entities stepping forward, allowing enterprises to truly play an autonomous role in the market. Through rectification, the government's work style is improving and efficiency is increasing, which is conducive to rapid decision-making by enterprises and seizing fleeting market opportunities. The reform of state-owned enterprises also brings benefits to private enterprises. The state only manages capital and assets from a macro perspective and no longer intervenes in specific business management. State-owned and private enterprises can hold shares in each other, and the original monopolies and protections no longer exist, allowing private enterprises to compete with state-owned enterprises on a level playing field.

　　In 2013, domestic fixed asset investment grew by 18.4%. Xiang Ru'an believes this figure will continue to grow this year. The country needs to stimulate consumption to drive economic growth, but if there is insufficient investment in a large number of infrastructure projects, the potential for consumption cannot be realized. The construction of high-speed rail in the past two years is a clear proof. This year, Shandong will start construction on 17 expressways, also hoping to meet the needs of population mobility through transportation and stimulate consumption growth.

　　Guiding toward the real economy

　　In terms of growth patterns, it should be noted that future economic growth patterns will be vastly different from the past. This can be seen from the structural changes in Sany excavator orders. Unlike previous years, orders for large excavators used in mining and other construction have significantly decreased, while orders for medium excavators used in urban road construction and small excavators used in agricultural water conservancy and farmland construction are increasing. In addition, orders for pump trucks mainly used in the real estate industry have also dropped significantly.

　　This indicates that the country is actively bursting economic bubbles and guiding economic development toward the real economy to achieve healthy,良性, and ecological development.

　　Xiang Ru'an told the reporter that he has a basic judgment: as the real estate industry achieves stable development, funds flowing out of real estate will return to the real economy, especially manufacturing.

　　Regarding overcapacity, Xiang Ru'an has his own unique understanding: the production capacity of lean equipment and products that meet customers' inherent needs will never be excessive. Sany has taken the macroeconomic adjustment of the past two years as a rare opportunity for the enterprise itself, proposing to be customer-centric, surpass international first-class levels, provide complete solutions, and transform from equipment manufacturing to equipment manufacturing services.

　　In a market economy, the strong always prevail. In 2013, the China Association for Quality awarded Sany Heavy Industry the "National Quality Award," the highest award in the quality field, making Sany Heavy Industry the only construction machinery enterprise to receive this honor in 2014. At the same time, Sany Heavy Industry's development has continuously received widespread attention and high praise from authoritative foreign media. The British magazine The Economist reported on December 21, 2013, that China's top construction equipment has reached world advanced levels. The report pointed out that according to an evaluation of six mainstream excavator brands worldwide by an authoritative organization, the comprehensive performance of Sany excavators has comprehensively surpassed Japanese and Korean excavators, reaching world advanced levels.

　　Sany has made full preparations for the next round of China's economic takeoff.