China compressor outlook forecasts and stressed challenge

In recent years, the engineering industry has made tremendous development, but also faces enormous challenges. Near the occasion of the 12th Five-Year Plan, as engineering machinery, especially screw air compressor industry outlook forecasts we interview Mr. Qi Jun, president of the China Construction Machinery Association. 

In the 12th Five-Year Plan, it is expected that by 2015, China's construction machinery industry sales income will reach 900 billion yuan. At the same time this year, the construction machinery industry sales income will reach 400 billion yuan, of which the air compressor industry (mainly screw air compressor), about 300 billion yuan.

There will be about two percent growth of the total fixed assets investment scale in the 12th Five-Year Plan period. Including railways, highways, transportation, energy, general machinery class (Screw compressor, etc.) as well as the urbanization project of construction and real estate, investment in the primary industry is still the main investment direction. Because these industries are national and local key construction projects, thus we can predict construction machinery industry will maintain steady growth momentum, while the average annual growth rate will not be lower than the double-digit. 

The adjustment of industrial structure and growth pattern as well as the rapid development of strategic emerging industries will become the main force of the 12th Five-Year period. In addition, with the large-scale development of the western region, revitalizing the northeast, central China, and the construction of further facts of Xinjiang national strategy, it is bound to create a favorable macroeconomic environment for the air screw compressor industry.

The same time, the main products of the demand in the 2015 international market for air compressors (screw air compressor) will reach 15 billion U.S. dollars. China air screw compressor products exports will reach about 500 million U.S. dollars, to become a major exporter.

President Qi concluded as saying that a new round of technological revolution is still in its start-up period. A number of important areas brew a new breakthrough of construction machinery. The main factors which may change countries' comparative advantage and competition will be the development of new technologies, new industries. International division of labor and trade patterns will also appear the deep-level adjustment in this context. Most of the air screw compressor industry in China is in the low end of the international division of labor, certainly will face serious challenges.