Infrastructure Investment Boosts Concrete Equipment Market
In order to stimulate the economy, the government increases investment, which also brings great effect to the machinery industry. Concrete equipment industry is mainly affected by the construction of infrastructure investment, which is highly correlated with the investment in fixed assets.
The tendency of long-term growth will not change. The subprime mortgage crisis may influence the growth rhythm of China’s machinery industry, but it will not change the driving factors of the long-term growth of China's machinery industry. The driving factors of the long-term growth of Chinese concrete machinery industry are our huge space of urbanization and the transfer the world manufacturing industry to China. It is difficult to change China's economic growth mode during the urbanization and the transfer the world manufacturing industry to China in the short term, that is investment is the main factor to drive the economic growth.
Due to the pressure of macro-control and the bubble rupture, the rate of increase increment of domestic real estate industry and metallurgy mining industry has slowed down or even declined. And the export also drop sharply because of subprime mortgage crisis impact. The industrial growth suffered a double blow. Because the infrastructure investment has obviously increased, the demands for products are obviously increasing. So the development of the infrastructure investment stimulates concrete equipment market.
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