The North American market has strong demand, and domestic host factories are expected to achieve breakthroughs in the field of micro excavators first.
In July, sales of various types of excavators reached 13,690 units, a YoY increase of 8.6%. Among them, domestic sales reached 6,234 units, a YoY increase of 21.9%, exceeding the previous expectations of CME (previously expected YoY increase of 17%); exports reached 7,456 units, a YoY decrease of 0.51%, lower than the previous expectations of CME (previously expected YoY increase of 7%), but the decline narrowed further, reaching the lowest monthly decrease in a year.
Northeast Securities released a research report stating that CME predicts continued positive growth in domestic sales of excavators in August, with overall exports improving.
CME estimates that the sales volume of excavators (including exports) in August 2024 will be around 14,300 units, a YoY increase of about 9%.
The domestic market is bottoming out and recovering, while the export market is gradually recovering.
Soochow Securities released a research report stating that in the long run, with the gradual release of North American capacity and the fading negative impact of tariffs, the construction machinery industry will see a significant increase in profit.
With the clear expectation of interest rate cuts in the United States and the acceleration of the return of manufacturing under the US presidential election, the market demand is expected to recover.
In 2023, the global construction machinery market size will exceed 1 trillion yuan, with strong demand in the North American market.
Looking at the downstream structure, due to the continuous increase in labor costs in the USA, mini excavators, as the main force to replace manual labor, account for over 80% of the excavator market.
Mini excavator technology has low barriers to entry, and the competitive landscape is relatively chaotic. Domestic mainframe manufacturers are expected to be the first to achieve a breakthrough in the field of mini excavators.
Companies related to construction machinery include:
Zoomlion (01157), Lonking (03339), First Tractor (00038), Sany Int'l (00631), Zhengzhou Coal Mining Machinery Group (00564), Sinotruk (03808), Weichai Power (02338), etc.