The rise of construction machinery industry is inseparable from the opportunities brought by the rapid growth of domestic fixed assets investment. Driven by the investment in fixed assets, the demand for construction machinery has maintained a relatively rapid growth. The inevitable result of industrialization and urbanization is to drive the rapid growth of fixed assets investment. In the next decade, China's fixed assets investment will maintain an average annual growth rate of 20%. This period is still the golden development period of construction machinery. The huge domestic market provides an excellent external environment for the construction machinery industry.
In 1975, American geographer Northam found that the whole process of urbanization is an S-shaped curve. According to historical experience and basic rules, before GDP per capita was 8,000 US dollars and urbanization rate was 70%, fixed assets investment was in a period of rapid growth. At present, China's per capita GDP and urbanization rate are about 2,700 US dollars and 45%, for example. It will take 12 years to achieve a per capita GDP of $8,000 and a urbanization rate of 70% if GDP is to grow at an average annual rate of 9%.
