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www.shcri.com  -  Machinery demanded in the comprehensive mechanized construction of earthwork, stonework, concrete work and building & installation projects is called construction machinery. The production of the construction machinery industry is featured with multiple varieties and small batch. This industry is a technology-intensive, labor-intensive and capital-intensive sector. Construction machinery is mainly applied in the national defense construction, transportation construction, construction and production in the energy industry, construction and production in raw material industries (e.g. mining), agriculture, forestry, water conservancy construction, industrial and civil buildings, urban construction and environmental protection, etc. 

In 2009, the market scale of Chinese construction machinery industry was about CNY 320 billion (USD 46.90 billion) with the growth rate of over 18.5%. Though Chinese construction machinery market achieved high-speed growth in the past few years, direct export to China is not the optimal strategy for foreign manufacturers, except the export of a few high-end products. The price of construction machinery in the global market is usually much higher than that in Chinese market. The prices of many products of foreign manufacturers are higher than that of Chinese local products by 50%-150%. Due to the large price difference, a great many Chinese domestic users prefer homemade cheap products with slightly lower quality.

Thus, to acquire Chinese domestic construction machinery enterprises is the first choice for transnational construction machinery enterprises to search for production and sales opportunities in China. By the acquisition, foreign-funded enterprises can immediately acquire mature production lines and sales channels. Many Chinese construction machinery products are suffering overcapacity and low profitability. When the output value is growing rapidly, the competition within the industry leads to the less profit growth  than the revenue growth. Once the downstream demand growth slows down, many enterprises in the industry will fall into the passive situation. They have to rely on the price competition to survive, but do not have adequate funds and vitality for the long-term development. 

Foreign-funded construction machinery enterprises usually carry out M&A in China by acquiring the shareholding. In the initial years, they will retain the original brands. Later, they will abandon the original brands and only produce products of foreign brands. This is the optimal mode for foreign-funded manufacturers, by which they can be familiar with Chinese market in the transition period and acquire the control on brands. Through years of rapid development, Chinese construction machinery manufacturers have strong manufacture capacity, but their funds, management and technological capacities lag behind the international and domestic advanced level greatly. M&A can enable foreign-funded enterprises to significantly improve the profitability with low cost.

Influenced by the financial crisis, Chinese construction machinery export suffered sharp decline in 2009. The export value amounted to USD 7.71 billion, dropping by 42.6% YOY. In 2009, the import value of Chinese construction machinery industry totaled USD 5.15 billion, falling by 14.4% YOY. During the export decline, Chinese local market was very important for the construction machinery industry. At the end of 2008, Chinese government released the plan to invest CNY 4 trillion (USD 570 billion) during 2009-2010. Over 50% of the investment is related to the infrastructure construction. It is predicted that the investment will generate the demand value of tens of billions USD in Chinese construction machinery market. In 2009, Chinese fixed asset investment reached CNY 22.48 trillion, 30.1% increase over 2008. Meanwhile, the fixed asset investment in Chinese railway industry reached CNY 700 billion, including CNY 600 billion for capital construction with the growth rate 79% YOY. The investment in Chinese real estate development totaled CNY 3.62 trillion in 2009, rising by 16.1% YOY.

It is forecast that Chinese construction machinery market will become the competition focus of global construction machinery giants in the coming few years.

Through this report, readers can acquire more information:
-Production status of Chinese construction machinery industry
-Demand of Chinese domestic construction machinery market 
-Investment in Chinese construction machinery industry
-Sub-sectors of Chinese construction machinery industry
-Import and export of Chinese construction machinery industry
-Major enterprises in Chinese construction machinery industry and their operation
-Influence of global financial crisis on Chinese construction machinery industry
-Prediction on development tendency of Chinese construction machinery industry
-Investment opportunities in Chinese construction machinery industry

Following persons are recommended to buy this report:
-Construction machinery manufacturers
-Construction machinery traders
-Construction machinery contractors
-Research institutes concerning Chinese construction machinery industry
-Investors concerning Chinese construction machinery industry
-Others concerning Chinese construction machinery industry

To get more details, please go to http://www.shcri.com/reportdetail.asp?id=458 

source: www.shcri.com

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www.shcri.com — In recent years, since enterprises have gradually improved their awareness levels of the financial leasing, the functions of the financial leasing market have been perfect and Chinese construction machinery financial leasing industry has entered a new stage of rapid development. Especially in the background of the financial crisis, Chinese government has adopted the policy to positively expand demands of the domestic market, which brings opportunities to the rapid development of the construction machinery financial leasing industry. But on the other hand, compared with mature financial leasing markets in developed countries, Chinese construction machinery financial leasing industry is still in the primary stage of development. Therefore, the market penetration rate is very low, which is only about 8%. According to the statics of China Research and Intelligence, in 2008, the market scale of Chinese construction machinery financial leasing market is only about 3 billion USD. The statistics reveals that Caterpillar’s the largest construction machinery producer in the world whose sales amount accounts for over 60% of the  global sales amount and over 80% of its sales amount in developed areas is dealt in the financial leasing.

The penetration rate of Chinese domestic construction machinery financial leasing is estimated to increase year by year. It is estimated that in 2010, it will be 12% and in 2015, it will reach 25%. The market scale will reach 20 billion USD. Thus, Chinese construction machinery financial leasing has a large development space.

For those construction machinery enterprises with large scales and sufficient cash flows, setting up their own financial leasing companies means significantly. Especially in the background of the financial crisis, bank mortgage amounts can not satisfy the sales demands of quite a few construction machinery enterprises. As a new sales model, to some degree, the financial leasing makes up for this demand. Just because of this, the sales model of the financial leasing has gained the attention of manufacturers and becomes the new choice for many large construction machinery enterprises home and abroad which hope to defend the market beat and the policy impact.

When economy is prosperous, bank credit policy is loose, and the financial leasing can fully play its function of corporate finance to promote the flourish development of economy. When economy is in depression, the financial leasing not only plays a role of a cardiotonic but also plays its role of promotion. It pushes forward investment and consumption, stimulates the economic development and pours fresh blood into the economic development. The financial leasing is an effective way to simulate investment and overcome the reduction in investment. To some degree, it can avoid being influenced by the fluctuation of national monetary policies. It plays a positive role in the stable development of enterprises and the sustained and stable growth of state economy. Moreover, the financial leasing has the function of accelerating depreciation. After a contract expires, part of leasing equipment will be absolutely overhauled in the second-hand market, which objectively promotes the development of remanufacturing and supports the cyclic development of the construction machinery industry.

For its objects, the financial leasing has a unique advantage in promoting the development of medium and small enterprises. In China, the standard of commercial bank loans in recent years is comparatively high, which not only avoides bank risks but also blocks the development demands of medium and small clients. The combination of the financial leasing provides medium or small enterprises with medium and long term loans. In the process of the financial leasing, the ownership of equipment belongs to a lessor, but the use right and the usufruct belong to a leaseholder. The current Chinese accounting system stipulates that leasing assets can be incorporated into a leasee company’s fixed assets to extract depreciation. For quite a number of medium and small construction enterprises, this feature can solve the problem of being classified as enterprises with insufficient quality for the lack of sufficient equipment (fixed assets). And successful bids of projects will not be affected. Moreover, a variety of business released by financial leasing companies can forcefully support medium and small companies to enter the market competition. For example, sale leaseback can help construction enterprises purchase the equipment tenders required in the process of bidding. That is to sell a company’s equipment at scrap value (which doesn’t take part in the construction tender) to financial leasing companies. Besides, it raises funds to buy the equipment required in the tender and rent the equipment which has been sold to the financial companies. The business has been comparatively mature overseas. Enterprises change physicochemical capital into money capital through sale leaseback. The business doesn’t affect enterprises to go on using property and keep the capital fluidity.

For construction machinery enterprises, the financial leasing has 4 functions as financing, promotion, investment and assets management. Among them, financing and promotion are the most important. Especially in the current stage of the national macro-control and the credit crunch, on one hand, the financial leasing can provide parent companies with financial services by adopting rental instead of selling. It not only avoids the over-reliance on bank credit, but also avoids the unsmooth intermediate links caused by too many stocks, which helps accelerate the flow of enterprise capital. On the other hand, the financial leasing can enlarge the market of parent companies’ products and strengthen the market competitiveness. Meanwhile, as the parent company of a financial leasing company, a manufacture enterprise can occupy partial profits of bank interests.

The overall prospect of Chinese construction machinery financial leasing industry is good. But according to the statistics of China Research and Intelligence in July of 2009, the operational status of every enterprise in Chinese construction machinery financial leasing industry is not the same. Some enterprises like Caterpillar, the international giant in the construction machinery industry, take many preferential measures in Chinese construction machinery financial leasing industry in 2009: before 2009, their financial leasing business required 5% of deposit; after entering 2009, the margin-free policy is carried out; the commission charge is canceled; 1-year construction machinery insurance is offered to their clients in the financial leasing business. Therefore, their business develops prosperously.

However, in some companies, the procedures for the financial leasing business are complex and the total leasing costs are higher than bank mortgages after the total. Thus their financial leasing business in Chinese construction machinery financial leasing industry has declined or even been canceled. The bank mortgage business replaces the market space left by the financial leasing business.

Source: China Research and Intelligence

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http://www.shcri.com/reportdetail.asp?id=274

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Eileen Gu

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China Research and Intelligence

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Financial leasing was introduced to China in the beginning of the 1980s. As Chinese market was still immature, the financial leasing was not carried out into a full play. But in recent years, with the booming development of Chinese domestic construction and the rapid marketization of the construction machinery, financial leasing has affected the construction machinery industry significantly. For those construction machinery manufacturers, financial leasing has four functions, namely financing, promotion, investment and asset management. Financing and promotion are the two most important functions. Especially under the present background of the financial crisis, the financial leasing can supply financial services for the parent companies in the form of leasing instead of selling. This has avoided the excessive dependence on bank credit as well as difficulties in circulation links because of too many stocks and speeded up the turnover of enterprise funds. On the other hand, financial leasing can expand the market of the parent companies and strengthen the mark competence. As the manufacturers of the parent financial leasing companies, they can also gain some profits from the bank interests. Consequently, more and more dealers have speeded up their steps to catch up with Chinese construction machinery financial leasing.

According to statistics, the world’s largest construction machinery manufacturers, America Caterpillar Company, deals with sales in the pattern of financial leasing in over 60% of the world and in over 80% of the developed areas. Its development pattern has been popular among many Chinese construction machinery companies in recent years. However, the financial leasing rate in Chinese construction machinery industry is only about 8% at present. It is estimated that the permeability of Caterpillar in Chinese construction machinery financial leasing market has reached 50%. Although this is lower than 80%, its proportion of the market in developed countries, it can reflect that the outlooks of Chinese construction machinery financial leasing market are quite promising.

Through this report, readers can acquire more information:

- Present situation of Chinese construction machinery financial leasing industry

- Factors affecting the development of Chinese construction machinery financial leasing industry

- Main foreign-funded enterprises in Chinese construction machinery financial leasing industry and their operation status

- Main local enterprises in Chinese construction machinery financial leasing industry and their operation status

- Predictions on the Development Tendency of Chinese construction machinery financial leasing industry

- Suggestions on the Development and Investment of Chinese construction machinery financial leasing market

The author recommends the following persons to buy this report:

- Construction machinery manufacturers

- Construction machinery dealers

- Construction machinery financial leasing enterprises

- Builders

- Investors concerning Chinese construction machinery financial leasing industry

- Research institutions concerning Chinese construction machinery financial leasing industry

- Other people concerning Chinese construction machinery financial leasing industry

Source: China Research and Intelligence

If you’d like to copy or quote this article, please keep the source information

More information can be browsed:

http://www.shcri.com/reportdetail.asp?id=341

As we all know, Construction machinery industry has a significant industrial characteristics, the market demand for construction machinery affected by the macroeconomic impact of large, especially with national infrastructure projects closely related to the construction of facilities. Here, we will analyze two aspects of construction machinery industry, market characteristics.

1. The factors affecting the purchasing power of construction machinery construction machinery sales targets are mainly the capital units, leasing companies and individual buyers, purchase subordinate capital requirements, purchase of the complex decision-making process. Sold to the purchasing power of the market and affect the market constitutes an important factor in size, and this purchasing power is also subject to various economic factors and social environment, these factors are:

Develop the national economy by the state general principles and general policies impact.

With the various infrastructure development of the industry related to these industries include: transportation, water conservancy, urban construction, electricity, energy, agriculture and other industries. 

2. Demand characteristics of a construction machinery. Construction machinery demand for a small number is different from other consumer goods, construction machinery demand is driven by sales of the object of the purchasing power and greater impact in the industry, with little bulk purchases, resulting in a smaller number of demand.

 Are derived from the demand for construction machinery construction machinery demand is derived from a variety of infrastructure projects, different projects require different engineering machinery, and even the same demand for construction machinery is not the same model specification.

The lack of elasticity of demand for construction machinery demand for construction machinery is not influenced by the prices, but on the needs of infrastructure projects, and the price reduction will not blindly buy, or because the product price increases to slow down to buy. Therefore, construction machinery market offers less flexibility.

Buying the professionalization of the procurement of construction machinery are mostly familiar with product performance, technical personnel to buy, these people’s professional and technical high purchasing more reasonable. Even if the first person to buy construction machinery will be subject to repeated comparisons and investigations will make a decision.

Other features of A. Whether an enterprise or individual to buy buy, affecting more people buying decision. B. Lease, there are many users of construction machinery was not used to buy the way, but in the leasing method to obtain the right to use the device. C. Most individual buyers will not use a one-time payment, but rather to take bank mortgage, installment, financing, leasing and other forms.

Get more excavator,bulldozer and construction machinery information.please visit: http://www.infoexcavator.com

Pennsylvania, a state booming U.S., has been providing construction equipment PA in recent years. No wonder the native state is popularly known as the Palestinian Authority, the ideal place to live and learn. More and more are considering moving into the state. A construction sites Heavy Equipment PA can be found in the place in almost every city. The Pennsylvania government ensures the well-being of his people, why there is a continuous development in the state. Make sure each family has a healthy and prosperous life, and is given by the different services than those who have a strong impact on the daily activity of the individual. From the road to major infrastructure, you’ll see here. They can be constructed from the farms of judges in a country if its economy is developing. With this, there is an expected increase in the availability of construction equipment PA. are Machines> Pennsylvania Since there is a construction industry growing in the State of Pennsylvania, it is of course that is quite a demand for construction machinery PA business. There is a growing number of companies that meet the needs of the industry here. They not only offer construction machinery for the people of the state, but they also provide their services to neighboring states and countries. To ensure the display, for each, where you have heavy equipment to the PA over ninety cities in the state guide, here are the ten major cities, they offer:
1

2 Pittsburgh 3 Erie
4 York.
5 Chambersburg Harrisburg

Waterford sixth seventh
Shippensburg 8 9 Pottstown

10th Philadelphia> Johnstown “/ p> The choice of assembling construction machinery Infrastructure has always gauge a country or state was the economy. For the vast infrastructure built in Pennsylvania, there are PA construction equipment is necessary. These devices can be either easy or difficult. Light or heavy equipment must perform PA tasks as essential as dredging, digging, transporting, loading and unloading at the construction of large structures. According to the tasks and the ability and the weight of the workload, have classified the mechanisms
? Heavy Machinery

1 2 3 Caterpillar Dumper

4 Chip Spreader Concrete

5 plants Cranes ? Light Machines

1 Air Compressor 2 Automatic brick making machine 3

4 years 5 Compact
Compactor? Roads, bridges, airports, sewage,> Dam Construction Machinery It is important to know and understand what the machine infrastructure, before it is ever necessary. Whatever type of construction equipment you need, there are many machines in Pennsylvania to choose.

the first quarter of 2009, the newly added fixed investment in China 91 8 billion, an increase of over 50% over the previous year, pushing the development of industry in construction of infrastructure. Among the various infrastructure buildings, transport has been the tallest building strength. According to incomplete statistics, the investment would be restarted in the balance railways, roads and ports, more than 40 billion euros in the first quarter of 2009, which was closely linked to the earth and stone related machinery USD, lifting equipment, machinery and concrete mixer machine cannon. Only in February 2009, China had finished second in 93 billion USD investment in the construction of railways in a single month to more than 200% over the previous year. The investments in highways have been completed on June 4 billion in February, a year marked by 70% over one year. under the influence of the international financial crisis, the growth of the Chinese economy begins to slow down the speed. However, there are still enormous needs and potential needs of construction equipment in the Chinese domestic market. In terms of investment of 4 billion yuan by the Chinese government has issued 75% more or less relationships with construction projects. It is roughly estimated that the planned investment to replace 20-biilion U.S. domestic construction machinery market. On the night of April 26, 2009, Sany Heavy Industry Co., Ltd. has released the first quarter financial statements, said the company achieved operating revenue of 2. 847 billion yuan in the first quarter of 2009 by 6 Less than 9% last year, net income, subject to the parent company was 236 million yuan, by 21 8% over the previous year. Basic earnings per share amounted to 0 in 1589 yuan. 29 April 2009 Xuzhou Construction Machinery Group has published the first annual quarter of 2009. During the period, the net operating income of 735 million yuan, 15 87% compared to the previous year. Net losses were about 8 to 6 million yuan, down 36% compared to 13. 42 million yuan loss in 2008, a net loss of 0,016 yuan per share. 29 April 2009 Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd has also announced its annual accounts in the first quarter of 2009, the company achieved operating revenue of 517 billion yuan third, an increase of 38 65% over the previous year and net profit of 301 million yuan. With influences operating costs have increased and so were the net profits of the company cut 17 72% over the previous year and earnings per share was 1977 yuan for a 0th 58 below. 87%. On April 29, 2009, Guangxi Liugong Machinery Co., Ltd. made their statement of financial position. During the period, the company generated total sales of two operations. 209 billion yuan, reduced by 10. 16% over the previous year, 151 million yuan in net profits of 8, 57% yoy. A significant improvement has been compared to a net loss of 49 million yuan in the fourth quarter of 2008 were made to achieve the 0th 32Yuan earnings per share. Most of the construction machinery in China in manufactured goods between the medium and low quality, but a definite advantage in price / performance ratio. In the circumstances of the depressed world market for construction equipment, there are relatively more choice opportunities for Chinese products. From January to February 2009 Import and export industry of China construction machinery were initially $ 88 billion, 26 percent lower than last year in which amounts of import were 660 million yuan, by 21 5% compared to the previous year, export figures were initially $ 21 billion, reduced With 2 to 29% last year, 550 million trade surplus with U.S.. In January-February 2009, Cumulative China imported 380 million USD of the total construction equipment increased 19% over 2008, representing 57% of total imports, 290 million dollars on the imports component output decreased by 23% over the previous year, representing 43% of total imports. Crawler Digger imports cost $ 120 million, a reduction of 41% compared to 2008, representing 32% of total imports of machinery. In the field of exports, China totally exported 770 million USD in building materials, 32 5% compared to 2008, or 645 of the total export amounts, volumes export components were down 22. 8% to nearly 440 million dollars over the previous year to account for 36% of total exports. However, Chinese manufacturers of construction machinery increased reliance on the export market, particularly in developing countries. The benefits are relatively low. It is difficult for Chinese products in construction machinery in overseas markets high quality, because giving the existence of the provision of components, problems of reliability and service. specify Please, source, reproduced For more information, please visit the

“/ a> ” / a> “/ a>, December 26, 2008, Changsha Zoomlion Heavy Industry Science and Technology Development Co., Ltd. formally merged Changde Xincheng Hydraulic Parts Co., Ltd. , in engineering different operating ; was valves, electromagnetic valves, pneumatic valves and complete hydraulic systems, the main suppliers of hydraulic valves for <, a> Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd., the merger with Changde Xincheng Hydraulic Parts Co., Ltd. adds channels of hydraulic products Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd., for a reliable preservation of high quality hydraulic valve components. ‘/ P> Lots of Chinese products to the construction of machines have excess capacity and low returns to profitability. In the period of rapid growth in production led to internal competition in revenue growth below revenue growth. Once the requirements of slowing down, most companies will be in a passive position, need to survive price competition and not enough energy and capital to reflect the long-term development . With the worsening international financial crisis, the capital of the companies many chains were broken, so as to allow some companies to acquire high quality at low prices. Although the construction machinery market in China rises to high speed, but it is not the best strategy for foreign companies to export products to China directly, except for some Minorities products. Construction Equipment on the world market price is generally 50 to 150 percent higher than in the Chinese market. Because of significant differences in price, many home users prefer the slightly lower quality products to choose local, but not imported goods. In such circumstances, foreign manufacturers to find positive production and marketing opportunities in China. Sun merge the national construction company whose priority is the selection, which allows foreign companies to mature product lines and distribution channels to get fast. for U.S. and European markets, the financial crisis pushes the consumption gain from upstream to downstream to purchase. Products performance / high cost and get more and more. Regarding the Chinese construction companies have been affected, high value-cost and low cost are the benefits of their product. In addition, there are high entry requirements for Chinese products in construction machinery in developed countries, especially European and American markets. Under the influence of the international financial crisis, consumption of these high value markets are transferred, the best opportunities for Chinese construction companies to open these markets will be high quality. originally occupied any Chinese construction machinery small markets in developed countries. Not only is the fall in demand in European and American markets but newly born in developing countries in exporting Chinese machines. To cope with the global financial crisis, the market in the development of the hotspot for Chinese construction companies become. < / p> As for the multinational construction equipment are concerned, Chinese companies to merge into circulation allows more control of the Chinese market from competitors and win more profits on the Chinese market. They can also, the company merged its global production bases of China, the use of low cost in China to reduce production costs. For machine construction company partly strong Chinese enterprises are satisfied not only with the changing market and begin to adopt the strategy will win out and merger of construction companies all overseas market share . It is expected that mergers and acquisitions in the machinery industry of China will accelerate construction in 2009 and 2010. On the one hand, mergers and acquisitions will be accelerated for local businesses. Some multinational companies like Caterpillar, will also increase the merger with the construction equipment industry in China, thereby reducing the cost and occupy the market to strengthen, on the other hand, Chinese companies in mergers, acquisitions, to get the broader market, as Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd. Please enter the Enjoy yourselves source / P> For more information, s “If you please visit http://shcri. Detailed Report / COM. asp id = 274