04-13-2025, 02:05 PM
As major infrastructure projects across China accelerate into high gear, the construction machinery industry is experiencing its traditional peak season for both operations and sales. On April 8, CCTV Finance’s Economic News Broadcast aired two feature reports: "Boom in Spring Construction — Domestic Excavator Sales Surge in Q1" and "Full-Capacity Production — Construction Equipment Industry Poised for New Replacement Cycle."
The reports, referencing the Excavator Index and providing an in-depth look at SANY Heavy Machinery’s production workshops, vividly depict domestic excavator manufacturers operating at full throttle, busy and fully engaged in production.
At the construction site of the Qianhai International Hub in Shenzhen, Guangdong, dozens of construction machines are operating at full steam. According to the project manager, construction has been accelerating since the start of the year, with continuous increases in equipment investment to seize the prime construction window.
The momentum in infrastructure projects during Q1 has had a clear upstream impact on the construction machinery sector. According to the Excavator Index, the average utilization rate of construction machinery nationwide in the first two months of 2025 was 37.38%, up 2.91 percentage points year-on-year.
During field interviews, many manufacturers reported significant spikes in orders. To cope with the surge, entire supply chains are running at full speed. In fact, excavator manufacturers have had to send staff directly to supplier factories to expedite deliveries.
Sales data shows that from January to March 2025, a total of 61,372 excavators were sold in China, marking a 22.8% year-on-year increase. Of these, 36,562 units were sold domestically (up 38.3%), and 24,810 units were exported (up 5.49%).
This spike in sales has pushed domestic excavator manufacturers to full production. In Kunshan, Jiangsu, Jia Hailiang, team leader at one excavator manufacturer’s assembly center, is working around the clock.
Industry experts note that excavators typically have a service life of around eight years. Based on that replacement cycle:
The reports, referencing the Excavator Index and providing an in-depth look at SANY Heavy Machinery’s production workshops, vividly depict domestic excavator manufacturers operating at full throttle, busy and fully engaged in production.
At the construction site of the Qianhai International Hub in Shenzhen, Guangdong, dozens of construction machines are operating at full steam. According to the project manager, construction has been accelerating since the start of the year, with continuous increases in equipment investment to seize the prime construction window.
Quote:Qiu Wei, Chief Engineer of the Qianhai International Hub project (China State Construction Eighth Engineering Bureau):
“Our project is a large underground transport hub with six basement levels and an excavation depth of over 30 meters. In Q1, we deployed over 40 machines, and we expect to use more than 80 large machines, including excavators, during the next phase.”
The momentum in infrastructure projects during Q1 has had a clear upstream impact on the construction machinery sector. According to the Excavator Index, the average utilization rate of construction machinery nationwide in the first two months of 2025 was 37.38%, up 2.91 percentage points year-on-year.
During field interviews, many manufacturers reported significant spikes in orders. To cope with the surge, entire supply chains are running at full speed. In fact, excavator manufacturers have had to send staff directly to supplier factories to expedite deliveries.
Quote:He Pengfei, Head of Operations, SANY Heavy Machinery:
“Even our external suppliers are overwhelmed by demand. Our commercial, procurement, and logistics engineers are now stationed long-term at supplier facilities to push for shipments—they simply can’t keep up.”
Sales data shows that from January to March 2025, a total of 61,372 excavators were sold in China, marking a 22.8% year-on-year increase. Of these, 36,562 units were sold domestically (up 38.3%), and 24,810 units were exported (up 5.49%).
This spike in sales has pushed domestic excavator manufacturers to full production. In Kunshan, Jiangsu, Jia Hailiang, team leader at one excavator manufacturer’s assembly center, is working around the clock.
Quote:Jia Hailiang, Assembly Center Team Leader, SANY Heavy Machinery:During the visits, reporters discovered that many companies are now scheduled through Q3. To boost efficiency, even staff from management positions have joined the front lines of production.
“We’re racing against time. Orders are not only surging, but they’re also very urgent. Our entire production line is operating at full capacity every single day.”
Industry experts note that excavators typically have a service life of around eight years. Based on that replacement cycle:
- In 2023, around 66,100 units were due for replacement.
- In 2024, the number rose to 80,600 units.
- In 2025, replacements are expected to reach 128,900 units, potentially ushering in a new wave of equipment upgrades across the sector.
Quote:Wang Zheng, General Manager, SANY Heavy Machinery:
“This year, driven by various factors—such as replacement demand and national project support—we’re forecasting 15% to 20% growth, slightly more optimistic than last year’s prediction of 10% to 15%.”
