In 2020, construction machinery ended strongly with a year-on-year sales growth rate of 39%. As a typical procyclical industry, how construction machinery will be interpreted in 2021 needs to continue to observe the downstream infrastructure and real estate investment trend. As a subdivided field, road equipment is directly related to traffic construction investment.
At present, the preliminary plan for investment in transportation has surfaced. According to the 2021 national transportation work conference held on December 24, the transportation industry will accelerate the improvement of transportation infrastructure network in 2021. Promote the construction of the main framework of the national comprehensive three-dimensional transportation network. Accelerate the construction of comprehensive transportation hub clusters, hub cities and hub ports and stations. We will accelerate the completion of the short board of railway infrastructure in the central and western regions, strengthen the construction of freight capacity of high-speed railways, and comprehensively promote the development of intercity railways and municipal (suburban) railways. We will promote the construction of a number of capacity expansion and reconstruction projects for expressway, ordinary national highway sections to be connected and congested sections. We will promote the construction of public infrastructure such as coastal access channels, accelerate the upgrading of high-grade inland river channels and the construction of navigation facilities for key navigation barrier gates and dams, and strengthen channel maintenance.
At the above-mentioned meeting, the Ministry of transport disclosed that it is planned to complete the transportation fixed asset investment of about 2.4 trillion yuan in 2021.
XCMG group, a leading domestic pavement machinery and equipment enterprise, recently analyzed that, regardless of infrastructure and real estate, from the data of 2020, the growth rate in the second half of the year is significantly better than that in the first half of the year. Considering the remedial effect on the first half of the year, the recovery intensity in the second half of the year is greater.
In addition, manufacturing investment is expected to continue its upward trend. The manufacturing PMI remained above the dry and prosperous line for four months, and the manufacturing entrepreneur confidence expectation index continued to rise in the third quarter, indicating that the downstream demand of the manufacturing industry is expected to increase and enterprises are optimistic about the future economic situation. At present, the revenue and profits of Enterprises above designated size are continuously improving, which is conducive to improving the expectation of investment income of manufacturing industry in the future. Third, the current improvement of capacity utilization in manufacturing industry also brings the demand for investment and production increase in the future. Therefore, the growth rate of manufacturing investment will continue to rebound in the future.
Generally speaking, the enterprise takes a positive attitude towards the investment in 2021 and believes that the investment growth rate will remain at a medium and high level, and 2021 will be the golden development period of road machinery.
According to the reporter of the Economic Observer network, the Ministry of communications is currently preparing the transportation plan for the 14th five year plan. Among them, it is necessary to strengthen the shortcomings of the western region, promote the improvement and transformation of transportation quality in the northeast region, promote the construction of large channels and hubs in the central region, accelerate the transportation construction of central cities, and accelerate the construction of key areas such as coastal, riverside and border areas, We will strengthen the optimization and upgrading of developed eastern regions and form a new pattern of coordinated development of regional transportation.
In terms of highways alone, XCMG estimates that the market scale of China's highway construction industry in the 14th five year plan is almost equal to the sum of the scale of the 12th Five Year Plan and the 13th five year plan, which is enough to support a sustainable and prosperous highway construction market.
At present, the exact basis of this calculation is not clear, but it can be seen that the leading domestic pavement equipment enterprises are optimistic about the future market.
