Market Trends of China Metal Fabrication Equipment Industry
This section covers the major market trends shaping the China Metal Fabrication Equipment Market according to our research experts:
Metal Cutting Equipment Pose Huge Potential in the Present Scenario
The Chinese economy is spurred by strong growth in the industrial machinery and transportation equipment industries, as well as in the electrical and the electronics market, owing to metal cutting and the related equipment used to carry out various procedures in the fabrication process. Additionally, a continuing shift in the product mix toward higher-value product types, such as multitasking machine equipment, may help drive future market gains, in terms of value. Moreover, increasing regulations regarding energy conservation are likely to lead to growth in demand for energy-efficient machining equipment. The segment is also benefitting from a relatively wider range of applications in durable goods production and a comparatively greater variety of metal cutting equipment product types. Growing demand for the highly advanced and comprehensive metal cutting machines, mainly for the machining centers and multitasking machines, may further boost product sales.
Construction Industry Offers Immense Demand Growth for the Metal Fabrication Industry
The construction industry in China is registering a CAGR of over 8%, and it is expected to grow further in the coming years. Commercial building construction was growing at a faster rate than residential buildings, and infrastructure construction was also picking at 7%. Though the industry took a blow in 2019, owing to the trade war with the United States and the slowing economic growth, it is now on a revival spree and growing at a significant pace. For the effective management of several projects, the Chinese government is betting on the transportation fixed asset investment (FAI,) with railways and subways as the main driving segments. Several favorable policy changes in the reserve ratios of banks resulted in high liquidity, thus, boosting the new project investments and smoothening cash flow for construction companies. While subway FAI is likely to increase due to the continuation of private sector involvement, railway FAI is expected to be equivalent to the highest level of 2017. Slow GDP growth and increasing trade war may lead the Chinese government to increase its spending in the infrastructure construction sectors to pace up its economy. Over the short- to medium-term, spending in transportation can see a rise, which may be favorable for the infrastructure sector, specifically machinery products and construction firms.
