International Overview 2010 on Construction Machinery

Firstly, let's talk about the "Asian Strategy" of international market. The financial crisis has seriously attacked the European and North America construction machinery markets; the major overseas construction machinery enterprises have the preparation of facing the decline of local market sales. So after the financial turmoil, all enterprises began to focus on the new markets in Asia, South American, and Africa markets. All governments have also introduced new strategy to stimulate their economic revitalization. And the countries replying on the increasing of GDP have launched relevant policies to promote economic growth by enhancing investment in infrastructure. China, India and Brazil have brought new growth to the global construction machinery enterprises during year 2010. we can see that the up-than-expected growth has become an universal phenomenon, and the increasing rate of most enterprises is more than 30% concluded from the public data of the major international construction machinery enterprises. This is the result of "Asian Strategy". And this also announced a good result of the global market in year 2010.

Then let's see the trend of localization. In 2010, the world construction machinery market is prosperous, even the most pessimistic European construction machinery market had earned recoverable growth. Markets of Asia, Latin America and Africa are the fastest growing markets. China and India are the representatives in Asia market. More and more famous global construction machinery manufacturing enterprises began to produce their mechanical products locally in China. For example, Japanese enterprises started producing the products in China since long ago by producing and selling construction machinery products in the terms of individual proprietorship and joint ventures in China. At present, the Japanese construction machinery enterprises such as Komatsu and Hitachi Construction Machinery have completed localization in China. In addition, Doosan, Volvo Construction Equipment, Liebherr Group, Terex and other world famous construction machinery enterprises have begun to expand their investment in the localization progress in China. The localization management for foreign brand is a market trend of the future for the global construction machinery market. But for China's construction machinery industry, we still need more time to achieve our localization management. At the same time, Chinese enterprises have gradually lost their advantage of a lower price. The competitions of technology and service would bring more pressure for the domestic Chinese companies in near future.

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