What Makes Big Orders for Bauma 2016 under the Difficulties of Global Economy?

Last for 7 days, Bauma 2016 has come to an end last week. With 3,423 enterprises from 58 countries and 580,000 visitors from 200 countries, the world's leading trade fair for heavy industry made a new success.

Despite the announcement made by the International Monetary Fund on April 12th that the world economy growth forecast will cut 0.2 percentage and worries from Maurice Obstfeld, IMF Chief Economist that the world economy risks "going into doldrums", a lot of big orders were signed during Bauma exhibition.

Just in the first two days of Bauma 2016, Sany Heavy Industry had received intending orders valuing more than 200 million RMB. One Indian company bought for 4 sets of rotary drilling rig in one time, valuing 10million RMB.

It is reported that this year the exhibitors received orders in a much higher speed than expected. Many exhibitors made a record in getting big orders at Bauma 2016, which made a positive sign for the unstable market. Just as said by Stefan Heissler, the Board Director of Liebherr-International AG, "We received many orders from different markets, some products even exceeded our expectations.”

But what makes these unexpected increments? In the light of a report released by PRNewswire on November 10th, 2015, the worldwide volume of construction output will grow by 85% to $15.5 trillion by 2030, with three countries - China, US and India - leading the way and accounting for 57% of all global growth.

It is reported that driven by developed countries recovering from economic instability and emerging countries continuing to industrialize, the average global construction growth will increase 3.9% per year till 2030, which is higher than the increasing rate of GDP.

"China's share of the world construction market will increase only marginally as growth slows in the world's largest construction market to 2030. In comparison, US construction will grow faster than China over the next 15 years - growing by an average of five percent per annum. Meanwhile, we're due to see a surge in construction rates in India as it overtakes Japan to become world's third largest construction market by 2021," said by Graham Robinson, Executive Director of Global Construction Perspectives.

The Indian construction market will grow almost twice as fast as China by 2030, providing a new engine of global growth in emerging markets. India's urban population is expected to grow in an incredible speed by 165 million by 2030. Delhi will absorb 10.4 million people to become the world's second largest city.

From this point of view, although the global economic situation is still uncertain, the positive forecast of construction market makes the Bauma 2016 still hot, which brings a quite positive sign for the construction machinery industry.