Analysis of Development of Concrete Machines with Mixed and Premixed Demand

In addition to analyzing the needs of construction machinery from the top down, there are some new variables that need to be observed at this stage:

1. Demand subsidence brought about by the increase in the mix ratio of the third and fourth tier cities. From the data at the end of 2010, China's national bulk bulk rate is around 48% and has not completed the 2006 target. However, in terms of distribution, first-tier cities have basically achieved a bulk rate of more than 90%. With the first-line real estate developers gradually entering the third- and fourth-tier cities, the construction methods have gradually shifted from on-site mixing to precast concrete, which has led to the rise of concrete machinery market in the third and fourth tier cities. By analyzing the volume of bulk cement used in the region, we find that the demand growth in the underdeveloped regions is faster than that in the developed regions, and the bulk cement rate is increasing faster. This objectively proves the trend of sinking demand.

2. Cement manufacturers enter the concrete industry. At present, large-scale cement companies have strong access to the ready-mixed concrete market. The goal is to invest in concrete mixing plants and directly designate concrete mixing plants to use the cement produced by the company to achieve cement sales and improve the industrial chain. Due to the large scale of these business plans, the demand for concrete equipment is formed. In 2011 alone, the concrete production capacity of Jidong, Ta-Pak, Yatai, China Resources, and Huaxin Cement reached 180 million cubic meters, an increase of nearly 100% year-on-year.

3. The demand for upgrading is gradually increasing. The theoretical service life of the concrete pump truck is 8 years. In practical applications, after the concrete pump truck has been working continuously for 5 years, the vehicle is old, the number of maintenance increases, and the maintenance cost is high. It can basically not be used as a main application, and the user needs to purchase a new vehicle again. Therefore, the actual service life of the pump truck is about 5 years, and the pump truck produced for more than 5 years basically enters the phase of replacement and replacement. Due to the rapid increase in demand for concrete machinery in 2006, we expect to enter the peak of replacement in 2011. The demand for updates in 2011 is expected to exceed 3,000 units, accounting for 20% of total sales.

Conclusion: Given that real estate new construction maintains positive growth and infrastructure investment remains high, the declining demand in the third and fourth tier cities, the strong expansion of cement manufacturers, and the increasing replacement demand have driven the concrete machinery industry to maintain growth of over 50% in 2011. During the twelfth five-year period, the average annual demand for pump trucks is about 16,000 units, which is about twice the 2010 output.