Reports indicate that the Ministry of Water Resources recently issued an internal document requiring localities to launch the implementation plan for the 2013-2014 winter-spring farmland water conservancy capital construction. According to the Ministry of Water Resources' requirements, total investment in farmland water conservancy capital construction this winter and next spring is targeted to grow by more than 10% over the previous year, with the total investment expected to reach more than 370 billion yuan.
Looking back at the beginning of this year, after experiencing the awkward situation of a weak peak season in early March, driven by investment in farmland water conservancy, construction machinery products represented by excavators rebounded significantly after mid-March. It is therefore expected that this massive 370 billion yuan investment may drive excavator sales to climb again.
The editor of China Construction Machinery Business Network learned that in recent years, various geological and meteorological disasters have occurred frequently across the country. In flood control and drought relief rescue work and water conservancy construction, construction machinery and equipment represented by excavators and loaders have played a pivotal role and become indispensable rescue forces in various regions, and local governments have also stepped up procurement. Nowadays, in some large-scale emergency rescue operations, scenes of dozens or even hundreds of pieces of construction machinery working jointly have become increasingly common.
Since the beginning of this year, the disaster situation of floods in the north and drought in the south has once again attracted attention from all sides. Among them, the drought-stricken areas in the south, especially the middle and lower reaches of the Yangtze River and the eastern part of the southwest region, have been severely affected and may become key areas for farmland water conservancy construction this winter and spring. At that time, construction machinery enterprises located around these regions may be able to leverage geographical advantages to improve their chances of winning bids and secure a considerable number of equipment orders.
Other analyses say that domestic water conservancy construction will maintain rapid development in the next 10 years. Therefore, high-quality and efficient construction machinery and equipment such as excavators will also usher in broad development opportunities.
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