Contruction in China : Caution is advised

The Chinese construction market is still struggled by economic difficulties. A return to growth could be announced on 2017 in view of the important renovation program set up by the Chinese government.

While the sales of the China machines in all segments industry are declined sharply, Off-Highway Research highlights a slight growth of finishers (+ 4%) from one year to another. This result is explained by the Chinese high investment in infrastructure development. 2015 had given 11 000 km of new roads.

As for the compact loaders, the sale figures are relatively stable despite a slight decline in turnover. Overall, the British analysts see a good long-term prospects for small machines technically sophisticated. This type of material should be recovered specially between 2016 and 2020 when the 13^th plan of the five-year period specifies the renovation or construction of 20 million housing units in urban areas.

Amongst the opportunities to emphasize the Chinese machines market, we could mention the financing programs for "sponge cities". This funding has been created by the Chinese central government in the fall of 2015 for 792 M€ for the period of 2016-2018 in order to renovate sewerage systems.

In the light of these different programs, Off-Road Research hopes a return to growth after 2017. Meanwhile the manufacturers exhibiting at Bauma in China (exhibition of building materials) are cautiously optimistic. The 2016 edition looks positive with 2810 registered exhibitors.