In recent years, with the aging of China's population, labor shortage, labor costs have risen remarkably, and the trend of mechanical replacement is obvious. Previously, road expansion, farmland construction and water conservancy facilities in China's rural market relied mainly on labor, but now the young rural labor force is missing, and most young people are seldom willing to do this work. Labor costs have risen sharply, which has spawned mechanical replacement labor. the trend of. In the past, the per capita possession of excavators in China was low, and the penetration rate of construction machinery in the future is expected to continue to increase. Moreover, not only in the field of construction machinery, the trend of mechanical substitution in various industrial fields is very obvious.

Taking China's data for the first half of 2018 as an example, from January to June, the added value of industrial enterprises above designated size increased by 6.7% year-on-year. Among them, the added value of the mining industry increased by 1.6% year-on-year, an increase of 0.3 percentage points; the investment in the mining industry increased from the previous year, up 0.2% year-on-year.

The improvement of the overall level of China's construction machinery industry has not only improved the domestic market share, but also achieved remarkable results in opening up overseas markets. In the development of overseas markets, the countries along the Belt and Road have become important target markets for China's construction machinery enterprises. In the five years since the policy of the Belt and Road Initiative, China's construction machinery and equipment have frequently appeared in the construction of international large-scale passages such as the China-Laos Railway, the China-Thailand Railway, the Hungarian Railway, and the Yawan High-speed Railway.

China's excavator sales increased by 60% year-on-year, loader sales increased by 33% year-on-year, and truck cranes increased by 74% year-on-year. A good development trend has not made enterprises forget about blindly increasing production capacity. On the contrary, most companies in the industry have begun to strengthen cash management and purify customers. The production and sales methods of small water and long-term flow also help reduce the risk of shrinking profit margins and accounts receivable.