VIDEO: Bauma China preview

By Chris Sleight21 September 2012

Held between 27 and 30 November, the sixth Bauma China promises to be +30% bigger than the 2010 event, thanks to the addition of five new halls (N1 to N5), which have been completed over the last two years. As of March this year, some 1,900 companies had applied for space at the show, compared to the 1,892 exhibitors from 37 countries that took part in 2010.

But this year has seen the Chinese equipment industry face the first real recession since it emerged as a serious force in the global marketplace a decade or so ago. This has come as the Chinese government has sought to calm inflation and prevent a bubble in the real estate markets, with policies that have impacted on both the demand for construction equipment and the availability of finance.

According to specialist consultant, Off-Highway Research, the Chinese construction equipment market was down -37% in the first six months of the year, compared to the same period in 2011. This is supported by financial results from some of the key international players in China, which focus on the excavator segment. The likes of Hitachi and Komatsu saw their revenues to the end of June almost halve compared to a year ago.

Having said that, there are encouraging signs in the market that could herald a return to growth for the sector. Interest rates have come down in several steps this year, while September saw the announcement of CNY 800 billion (US$ 127 billion) for 25 urban railway and metro systems throughout the country.

But perhaps more significantly, November will see the handover of power from current Chinese leader Hu Jintao to president-in-waiting, Xi Jinping. This will be accompanied by a host of other appointments at regional and national government levels, and is expected to be accompanied by announcements of various projects and investments that should give the construction sector a boost.

So while the year to date has been one that the Chinese construction equipment industry might prefer to forget, the timing of Bauma China could be particularly advantageous.

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