CHINA
19
NOVEMBER-DECEMBER 2013
access
INTERNATIONAL
Globe trotting
China’s economic
downturn could be to the
powered access sector’s
advantage. With access
equipment sales set to
take off in China, many
believe it will hold back a
boom and bust scenario.
Euan Youdale
reports.
S
peaking during October’s BICES
construction equipment exhibition
in Beijing, China, Off-Highway
Research’s Beijing-based senior consultant
Karin Sun warned that the slowdown in the
Chinese market was not over.
The organisation forecasts that unit sales of
construction equipment could be 9% down this
year, with only a modest 1% rise next year.
Ms Sun said a particular problem for dealers
was the large number of used machines being
repossessed from customers. Many of the larger
dealers in China now have hundreds of low
hours used machines available. “That is why
rental has become such a hot topic for dealers,”
she said.
Powered access equipment is bucking
the economic trend somewhat. As in other
emerging nations access equipment is a new
concept and in China the market is no more
than 10 years old. Rental is a vital part of
any strong access market, but unlike general
construction machinery that is being sold off
in its thousands in China, there are only up to
5000 units of powered access equipment in the
country, and the sector is growing. Combined
with the steady growth of rental, access has an
undoubtedly strong future.
How steep that growth curve will be over
the next five years is open to speculation, but
anything between 10% and 30% seems possible.
Most players in the Chinese access sector,
however, would like to see a steady rise, rather
than a bubble that will inevitably burst.
Last year revenues at Terex Changzhou
Machinery, Terex AWP’s China subsidiary,
increased by 50%, despite the economic
downturn in China. Clint Weber, general
manager at the subsidiary, tells
AI
that there
will still be growth over the coming months,
but it is likely to be slightly less than last year.
“Like in developed access markets rental is
key. In the past rental was only found in the
shipyard industry, but it has now developed to
become a significant part of the market and is
considered to be responsible for 60 – 70% of
sales,” says Mr Weber.
“Rental is a model that’s being followed here
in China, and it is getting towards the situation
found in Europe. Following the downturn
companies are cash starved so rental is a good
option and we are actively helping to grow and
Mantall was showing its new 16 m XE
160W scissor at BICES.
Sinoboom demonstrates its new GTJZ 04
scissor to a potential customer.
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