China Construction Crane Industry Report 2008-2009

In the first half of 2008, the sales revenues of China’s crane reached 15.21 billion yuan, up 93.3 per cent year-on-year, among truck crane reached 13,052 units, up 32.4 per cent year-on-year. Resulted in the gap of the growth between sales revenue and sales volume is the great growth of the large tonnage crawler cranes and terrain rough crane

The demand of Chinese crane market reveals a trend obviously that the market share of those mid- and high-end products will rise in the future. During January-August 2008, under the great growth of market possession, the development growth of the Chinese construction crane industry still maintained a rapid growth, particularly the sales of truck crane was over 16,000, an increase of 24 per cent year-on-year; Crawler cranes sold 1100, up 114 per cent year-on-year. The increasing sales of those large high-value equipments have a significant contribution to raise the single unit sales price.

There is an optimistic view of medium- and long-term prospects of China crane industry. Firstly, large-scale trends of crane products; secondly, the improvement of crane product mix, such as the rise of crawler cranes and the future development of the terrain rough crane; finally, not the last, the rising global competitive of Chinese crane products and the growth of exports which will drive the growth of China’s crane industry.

In the short term, there is a prudence view on China’s crane industry, which is caused by the two main products which dominated the current Chinese crane market -tower cranes and truck cranes. The sales of tower crane will suffer a greater negative from the slow down of real estate investment and truck crane will also affect by the result of the slowing down of the overall fixed-asset investment. But, on other hand, in terms of Chinese central government new monetary policy and national fix-assets investment plan, the probability of negative growth year-on-year is relatively small.