4 trillion water conservancy investment feast boost confidence in construction machinery industry

On January 29, the "Decision of the Central Committee of the Communist Party of China on Accelerating the Reform and Development of Water Conservancy" was issued. This is the first time that the Central People's Government has fully deployed the water conservancy work since the establishment of the People's Republic of China 62 years ago. The document proposes that in the future, public finances should increase investment in water conservancy, and water conservancy should be used as a key area for public finance investment. Measures include the extraction of 10% of land transfer proceeds for irrigation and water conservancy construction; further improvement of water conservancy construction fund policies, extension of the expropriation period, expansion of source channels, and increase of income scale; and strengthening financial support for water conservancy construction. In addition, the Measures for the Collection and Use of Water Conservancy Construction Funds issued jointly by the Ministry of Finance, the National Development and Reform Commission, and the Ministry of Water Resources recently provide funds for the rapid growth of water conservancy investment. This is undoubtedly a major good news for the construction machinery market closely linked to water conservancy construction, which greatly boosted confidence in the development of the industry.

Water conservancy construction is an important market for the use of construction machinery products. The state's key policy support for water conservancy construction will directly boost the demand for construction machinery products such as excavators, loaders, bulldozers, and cranes. The document will clearly strengthen water conservancy construction and raise funds through multiple channels. It strives to double the average annual input of water resources in the society in the next 10 years compared with 2010. In response, Chen Xiwen, deputy head of the Central Rural Work Leading Group and director of the office, analyzed that China’s water conservancy investment is 200 billion yuan in 2010, which is 100 billion yuan, which means that water investment in the next 10 years will reach 40,000 yuan. 100 million yuan.

In the financial crisis that engulfed the world, the government’s 4 trillion investment made the construction machinery industry stand out in the global market. Not only has it not been affected by the crisis, it has also created an unprecedented development myth. When the investment in 4 trillion yuan that drastically boosted the demand for construction machinery came to an end, the national water investment policy was introduced in due course. In the next 10 years, water conservancy construction may become the next investment feast after the high-speed railway and the decision-makers are paying close attention to it. Large-scale water conservancy construction will greatly stimulate the demand for construction machinery products. In this new historical opportunity, construction machinery companies must continue to innovate in accordance with this development direction, and research and develop and produce construction machinery products that meet the needs of the water conservancy market. At the same time, construction machinery enterprises should pay close attention to the tendering and bidding trends of new water conservancy projects across the country. The “2011 Compendium of China's Water Conservancy Engineering Major New Projects” edited by China Construction Machinery Business Network featured 479 major new construction projects for water conservancy projects in China in 2011. The total project investment amounted to nearly 200 billion yuan. This compilation has great reference value and helps construction machinery companies to quickly find water conservancy customer resources and seize market opportunities.