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In recent years, domestic small excavator market
develope at a rapid rate of 120% year by year, this trend become the main support to promote profit margin of excavator
industry, the prospect of excavator market leads many enterprises enter into new manufacturing field of small excavators.
(1) advantageous factors
first, the small excavator market is expanding at the rate of 120% year by
year. the overall sales of the first 9 months this year has reached 13275 units.
second, domestic small excavator market possesses vast potential and development
space. Market share is inappropriate with China's vast territory and economy scale.
Moreover, China is the largest excavator market in the world and China become the center for excavator
manufacturing. China is a developing country which has a big territory and is still building lots of
infrastructures. The demand for excavator is huge, which promises
Chinese market's first place in the world. Many state or private owned companies are very optimistic about the future of the excavator
market, all these factors attract investors enter into the field.
(2) possible risks
Favourable development trend of small excavators lead to more fierce competition and large market space pocket
risks. Many famous excavator manufacturers improve the technology and quality in order to keep pace with the industry development and hold more market
share. Furthermore, driven by the big profit and attractive market
condition, some manufacturers on other industry also plunge into construction machinery manufacturing.
the devotion of national fixed assets influence the growth of small
excavators, the increased devotion of fixed assets will promote excavator market development and decreased devotion of fixed assets will baffle its
development. but the policy is fluctuant, so the development of small excavator is also alternative.
Moreover, the central government will issue strict policy to regulate its market in a long time
run. Currently many informal small excavator manufacturers blindly enlarge market scope and conduct simple and repeated product
structure. so it can be expected that relevant regulations must be issued to standard the production of small excavators.
so it's advisable to keep level head and make your wise decision.
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