The machinery industry belongs to the middle investment category, and its prosperity is closely related to the macroeconomic environment. Therefore, combining the corresponding policy environment to analyze downstream capital expenditure trends is the starting point for studying the mechanical equipment industry. 2012 is an important transitional year for China's economic development, and the structural changes in downstream investment trends throughout the 12th Five Year Plan period will also be significant under the guidance of policy regulation. This change is likely not a short-term phenomenon, but rather means that the long-term investment focus of the machinery industry is changing with the adjustment of China's economic structure.

According to sources from China Construction Machinery Equipment Network, the lack of external demand for construction machinery has catalyzed domestic structural adjustments. In terms of domestic demand, large capital investment projects mainly focused on real estate, railway infrastructure, and heavy industry expansion have played an indispensable role in driving equipment demand. In terms of external demand, the thriving international economic environment and China's successful role as a world factory have further contributed to the outward growth model of the domestic machinery industry.

However, relying on excessively advanced downstream investment expenditures and extensive growth driven by labor factor cost advantages is unsustainable, especially for equipment manufacturing industries that require long-term technological accumulation.

From the past two years of infrastructure