According to the latest operating data, the recovery of the construction machinery industry entering the second quarter is even stronger. Looking back at the industry environment, from 2014 to the present, China's official manufacturing Purchasing Managers Index (PMI) has been hovering at the 50-point line for four consecutive months. China's construction machinery industry is still in slow recovery. 
Industry expansion will continue to grow and fatigue is the main difficulty
According to data released by the China National Bureau of Statistics and the Federation of Logistics and Purchasing (CFLP), China’s official manufacturing purchasing managers’ index (PMI) declined in February from the previous month, hitting a new low of 8 months, but the index remained at 50. Above the dividing line of prosperity and drying, it shows that China's manufacturing industry continues to expand, but the growth rate has slowed down.
Analysts pointed out that due to the Spring Festival holiday in February, the company's production and business activities will naturally be affected. “The above results should be expected in the market. Therefore, we cannot simply conclude that the economy has dropped sharply. It should be said that China’s manufacturing industry has continued to expand.â€
Focusing on the construction machinery industry, although the construction machinery industry in the PRC experienced negative growth in the first three quarters of 2013, some representative products began to rebound in the fourth quarter. Statistics show that in 2013, the value added of the machinery industry increased by 10.9% over the previous year, an increase of 2.5 percentage points over the previous year, and the recovery was stronger than the national industry. Although there are signs of recovery in the industry, at present, the problem of overcapacity in China's construction machinery industry has not yet been completely relieved, and companies are still being affected by factors such as rising costs of raw materials, manpower, and environmental protection policies. It is unrealistic for the domestic construction machinery market to have significant growth in 2014. The market trend will follow the pace of 2013 and continue to maintain a slight upward trend and steady development.
For the industry development in 2014, Cai Weici, vice president of the China Machinery Industry Federation, said: “Although China’s machinery industry will generally continue its steady and moderate growth in 2013 in 2014, the machinery industry is also facing some unfavorable factors. The difficulty of further expanding the export of China's machinery products has increased, the funding pressure of enterprises has also increased, and the cost of human and environmental resources has also entered a rapid upward path, which will squeeze the profit margins of domestic enterprises, and the order growth will be weak and the demand will be weak. It is one of the major difficulties faced by machinery companies in 2014."
Downstream positive related policies highlight development highlights
Although the construction machinery industry was still in the process of capacity digestion in 2014, it faced difficulties such as weak order growth and weak market demand. However, as the economy rose steadily and the infrastructure construction improved, a lot of positive information appeared in the downstream of the construction machinery industry in 2014. .
Last year, the "Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Comprehensively Deepening Reforms" issued at the Third Plenum of the 18th Central Committee of the 18th CPC Central Committee further advanced the "promotion of a new type of urbanization centered on people". The State Council executive meeting also explicitly proposed that private capital should be encouraged to enter infrastructure. In the construction field, the continuous warming of policies has brought bright points for growth to the construction machinery industry that entered the adjustment period.
At the same time, the haze days in most parts of China have also made energy conservation and environmental protection a top priority in today’s social development. Technological innovation and environmental protection and energy conservation will become the main development trends of China’s construction machinery industry in the future. In addition, accelerating the "going out" strategy and expanding overseas markets are still an important means of resolving the overcapacity in the Chinese construction machinery industry.
In a recent industry event, Lü Ying, the deputy secretary-general of the China Construction Machinery Industry Association, judged that the construction machinery industry will maintain steady growth in 2014, and sales growth will be around 8%.