Recently, the sales data of excavators in February 2021 were freshly released, which once again exceeded expectations. Sales of 28,305 units, a year-on-year increase of 205%, far exceeded the previously expected increase of about 150%, setting a sales record for February of the previous year.
This round of gains spanned the Spring Festival and still achieved far-than-expected growth due to multiple factors. On the whole, the main factors are the expansion of the scope of statistics, the increase in infrastructure investment, the centralized resumption of work, environmental protection policies and the promotion of strong cycles of renewal.
Too hot! Excavator sales set a new record in February, up 205% year-on-year
Data details and analysis
According to statistics from the China Construction Machinery Industry Association, in February 2021, the 26 mainframe manufacturers included in the statistics sold a total of 28,305 excavating machinery products, a year-on-year increase of 205.0%. Among them, the domestic market sold 24,562 units, a year-on-year increase of 255.5%; export sales were 3743 units, a year-on-year increase of 57.9%.
Too hot! Excavator sales set a new record in February, up 205% year-on-year
From January to February 2021, a total of 47,906 units of various excavation machinery products were sold, a year-on-year increase of 149.2%. Among them, the domestic market sold 40,588 units, a year-on-year increase of 176.7%; export sales were 7,318 units, a year-on-year increase of 60.7%.
Too hot! Excavator sales set a new record in February, up 205% year-on-year
Too hot! Excavator sales set a new record in February, up 205% year-on-year
From a structural point of view, the sales volume growth of China Dig was the most obvious in February. As a standard model suitable for construction, the sales growth of this model fully reflects the overweight situation of infrastructure investment. It also reflects from the side that with the tightening of the supply of raw materials such as coal and steel, the start of mines is also favorable to the demand brought by Zhongda Dig.
In terms of sales volume, the substantial increase in domestic sales volume in February mainly includes the following factors:
Increase in data statistics companies
In the sales data of February last year, a total of 24 mining machinery manufacturing companies were included in the statistics. Since January this year, Lonking and other major companies have begun to include excavator data statistics, expanding to 26, and the statistical base has also increased accordingly.
Too hot! Excavator sales set a new record in February, up 205% year-on-year
Outstanding results of epidemic control, centralized resumption of work
Last February, at the end of the Spring Festival holiday, home quarantine nationwide, construction sites delayed the resumption of work, resulting in a 50.5% decline in sales year-on-year. In February of this year, despite the Spring Festival holiday, the epidemic was under stable control, and the country's strict prevention and control effects were prominent. Major construction sites across the country resumed work ahead of schedule.
Too hot! Excavator sales set a new record in February, up 205% year-on-year
According to data from the Centennial Construction Network, the nationwide construction company operating rate was 62.79% as of February 21. According to the company’s start-up plan, it is expected that the operating rate will reach 90.7% on February 28; the project resumption rate as of February 21 is 17.52%, according to the project. The resumption of work plan is expected to reach 49.2% on February 28; the current actual start time is 0.7 days earlier than planned on average. Compared with last year, the rate of project resumption has increased significantly.
Strong infrastructure investment
2021 is the first year for the country to accelerate the construction of a transportation power and implement the "14th Five-Year" plan, and the "14th Five-Year" transportation construction projects have also been launched one after another. The Ministry of Transport disclosed that with the in-depth implementation of the strategy of expanding domestic demand and helping to maintain a high level of investment in transportation fixed assets, it is expected that the investment in fixed assets in transportation will be completed by 2021 at around 2.4 trillion yuan.
Too hot! Excavator sales set a new record in February, up 205% year-on-year
At the same time, according to statistics, 28 provinces (autonomous regions/municipalities directly under the Central Government) have announced the 2021 infrastructure fixed asset investment plan, with a total investment of approximately 3.2 trillion yuan.
Whether it is the national transportation investment, or the investment planning and implementation of infrastructure investment in various provinces, cities, and districts, there is a great demand for the excavator industry.
Update strong cycle + environmental protection policy promotion
The service life of excavators is generally 8 to 10 years. Since 2016, it is in the equipment renewal cycle. The current round of growth is in a strong cycle time. In addition, the environmental protection policy is also beneficial to the growth in February.
At the end of December 2020, the Ministry of Ecology and Environment officially announced that the non-road national four emissions will be implemented on December 1, 2022. Among them, the implementation time in Beijing is even earlier, and it is planned to be implemented on December 1, 2021.
Too hot! Excavator sales set a new record in February, up 205% year-on-year
Excavators from 8 to 10 years ago were still in the second national emission standard. With the promotion of environmental protection and stricter emission policies, a considerable number of old excavators are in the replacement cycle, which has a significant impact on the growth of equipment sales. Great promotion.
In the beginning of 2021, there have been many good news, whether it is the release of the infrastructure investment plan, the comprehensive launch of the rural revitalization plan, and the expansion of effective investment in the "Government Work Report" in the "two sessions" that are being held, "two new "One heavy", infrastructure, pipe network transformation, agriculture and rural areas, carbon neutrality, carbon peaking and other key aspects have set the tone for the growth of the excavator industry this year. I believe March will bring us more surprises.
