Burgos, March 24, 2021.- China, considered the world’s leading economic power, along with the USA, is very optimistic about the evolution of the construction sector, as published by ChinaDaily.com:
Profits of machinery manufacturers totaled 1.46 trillion yuan ($225.7 billion) in 2020, up 10.4 percent on a yearly basis, from a revenue of 22.85 trillion yuan, up 4.49 percent. Segments like construction machinery, industrial robot and smart manufacturing all saw double-digit growth last year, according to the Beijing-based federation.
As over 600,000 5G base stations were built in 2020, and 462,000 charging pillars were constructed for electric cars, Chen said this kind of “new infrastructure” has created a sound platform for the growth of machinery makers.
Since the government plans to run a nearly 700,000-kilometer transportation network formed by roads, railways, waterways and air routes, build main corridors and passages as the skeleton of national transport network, and establish 100 transport hub cities by 2035, it will create long-term momentum for the country’s machinery makers, especially in the construction machinery sector, business leaders and experts said.
Modern transportation infrastructure facilities can help lower-tier Chinese cities, counties and villages ship their agricultural and industrial products to other parts of the country as well as other countries efficiently, and accommodate imports such as production materials, factory equipment and consumer goods at lower costs from ports either within their regions or in other domestic locations, said Luo Renjian, a researcher at the National Development and Reform Commission’s Institute of Transportation Research.
The network, which will connect all county-level administrative regions, borders, major facilities and tourism spots, will comprise roads, railways, air routes and waterways, according to the plan announced by the Ministry of Transport.
Apart from the Civil Aviation Administration of China’s plan of increasing the number of civil transport airports to about 400 in the coming years, the National Railway Administration of China announced earlier this month that China will aim to build a 200,000-km railway network by 2035, including 70,000 km of high-speed railways, up from about 38,000 km at present.
Major railway infrastructure projects will be built to boost the development of China’s western region, such as the Sichuan-Tibet railway and a railway corridor connecting inland areas in southwestern and southern China, according to the administration.
Amid global uncertainties, including protectionism and the COVID-19 pandemic, Xuzhou Construction Machinery Group, a Jiangsu province-based construction machinery manufacturer, said it will aim to spur industrial chain development by exploiting opportunities created by the nation’s dual-circulation strategy, in order to ensure sustainable growth in the long run.
“Although the overseas market remains challenging amid the pandemic, the sizable market scale of the domestic market is bringing huge opportunities for Chinese construction machinery producers,” said Wang Min, chairman of XCMG.
The kingdom’s construction industry is expected to grow at an average rate of 4.3% between 2022 and 2025
Bahrain’s construction output contracted by an estimated 0.2% in real terms in 2020 as the industry faced disruptions due to the Covid-19 pandemic and movement restrictions to prevent its spread.
Added to this was the oil price drop, which further compounded this problem as Bahrain is highly dependent on oil revenue.
However, driven by investments in infrastructure, oil and gas and in renewables, the industry is expected to recover in 2021 with an expected real growth rate of 2.1%, according to GlobalData, a leading data and analytics company.
The kingdom’s construction industry is expected to grow at an average rate of 4.3% between 2022 and 2025, stated GlobalData in its report, ‘Construction in Bahrain – Key trends and opportunities to 2025.’
This will be supported by investments on the development of the country’s overall infrastructure in line with its economic vision 2030, it added.
Dhananjay Sharma, the analyst at GlobalData, said: “Despite economic diversification efforts, hydrocarbons still account for more than 70% of fiscal revenue and, as a result, the public finances are vulnerable to oil price volatility.”
“The IMF’s forecast of a rise in oil prices by 21% in 2021 offers respite to Bahrain’s government as it would facilitate further investments in the industries, energy and utilities and infrastructure sector, which would help in the government’s diversification efforts,” noted Sharma.
Projects in Bahrain, as tracked by GlobalData, have a combined value of $80.2 billion. The pipeline – which includes all projects from pre-planning to execution with a value above $25 million – is skewed towards late-stage projects, with those in the execution stage accounting for 63.1% of the pipeline’s value as of January, he explained.
According to Sharma, the residential and mixed-development projects account for the largest proportion of the project pipeline, with a share of 39% of the total project pipeline.
“This reflects the enormous potential in the residential sector, which has so far been mostly driven by government investments. The government’s efforts at attracting private players as well as foreign investments will boost growth in this sector over the forecast period,” he added.