Construction machinery will move forward in urbanization in 2014

Abstract The long-awaited urbanization plan has finally been unveiled. After a year of anticipation and uncertainty, the plan is now taking shape. At the Central Urbanization Work Conference held in December 2013, the "National New Urbanization Plan" was discussed, and various departments have since made revisions based on the discussions. It is reported that the plan has been finalized and is expected to be officially released soon. With this development, the construction machinery industry is now ready to ride the wave of "new urbanization," aiming to capitalize on the opportunities in 2014 and accelerate its growth.

The state will implement supporting reforms for urban agglomerations

In the coming years, China will focus on developing key urban agglomerations such as the middle reaches of the Yangtze River, the Central Plains, the Shandong Peninsula, the Chengdu-Chongqing region, and urban clusters in the northeast. Experts predict that large-scale cross-regional urban agglomerations are emerging, and more national-level urban clusters will rise in the future. Local governments have reached a consensus on accelerating the development of these clusters. Once the urbanization plan is officially launched, we can expect to see construction machinery being deployed across many regions as urban agglomerations become more prominent.

An economist suggests that to shift from administrative control to more efficient market-driven approaches, the government should improve land use planning and promote market operations. Establishing a unified labor, land, and capital market across urban and rural areas will help allocate resources more efficiently. Additionally, reforming the administrative system, clarifying the market’s role, and reorganizing city finances will be essential steps forward.

New urbanization brings higher demands on construction machinery

The National New Urbanization Plan also includes specific chapters emphasizing construction quality, strengthening regulatory oversight of the construction market, and improving its order and structure. Issues such as poor infrastructure quality, housing defects, and other real estate problems have sparked public concern. As a result, future supervision of construction companies will be more rigorous. This means not only that government agencies must enhance their oversight, but also that construction machinery manufacturers need to innovate and improve their products to meet the growing demand. Therefore, in 2014, technologically advanced construction equipment will hold a competitive edge in the market.

The new urbanization strategy is set to become a major driver of China's economic growth. It will boost rural development, lead to widespread renovation of rural housing, improve farmland irrigation systems, and expand urban infrastructure. According to industry experts, the excavator sector is gradually recovering in 2014, with an expected annual growth rate of around 6%.