Report Forecasts Increase in Demand for Construction Equipment in China

Demand for construction machinery in China is projected to increase 12.7 percent per year through 2011, outpacing advances in other parts of the world, according to a report from the Cleveland-based market research firm the Freedonia Group.

Growth will be driven primarily by strong gains in Chinese construction activity as industrialization efforts continue and income levels rise. The introduction of new and better performing equipment will also boost growth, although longer machinery life spans could adversely impact demand for replacement parts going forward.

Excavators and cranes will remain the most commonly used construction machinery in China, benefiting from their widespread use in both building and non-building construction applications. Loaders, mixers and related equipment will see the fastest demand gains, according to the report. Gains will be driven by the versatility of loaders and the prohibition of on-site concrete mixing in Chinese city center construction projects, which will trigger demand for premixed concrete and related mixing machinery.

Demand for off-highway trucks and tractors is expected to rise 11.7 percent per year, relatively modest gains compared to other equipment in China, but still healthy, according to the Freedonia Group.

The full study, “Construction Machinery in China,” is available for purchase through the Freedonia Group at www.freedoniagroup.com.