The segment recorded a CAGR of 22.52% between years 2003-2013
As china is the largest populated country in the globe it is ought to have endless opportunities for businesses of all sorts. Massive construction projects both in the segments of commerce and residence keep happening and thus the elevator section is a subsidiary segment which earns big and continuous money. The lift making industry is a huge profitable business with great potentials in the upcoming years. As per the records the segment went through a hype period in the year 2003 and since then it has experienced a positive curve on a constant basis.
Yearly Performance, Scaling New Heights:
It has been a true rapid growth trend since 2003 as factors like large scale construction projects both homes and offices; developments of public transportation systems in large and medium sized cities have been the driving forces which have declined the slow-down of sales of elevators. The elevator industry is extremely hyper in its business as it is undergoing a growth rate of above 18% on a year on year pattern.
There was a mammoth production of 6, 25,000 units outnumbering all production numbers of the previous financial calendars. The business trends related to the local brands have been pretty watchful as they are successful in capturing a notable share in the total business according to market research. Their share in the market rose up from 20% in 2000 to 45% by the end of 2013.
Besides the installation process, the manufacturing companies have booking profits through the maintenance processes as well. Noticing the growing demands around the country major brands which are established and popular brands are planning their expansions. Heavy usage of lifts especially commercial establishments bring in the need for regular maintenance works. Companies have come up with discounted rates for maintaining which for long term periods providing substantial gains for clients.
Top Elevator Makers:
Expert Shenyang Brilliant Elevator Co. Ltd stood out as the industrial leader in terms of its earnings as it went through a hike of 20% in revenues for the year 2013-14. Guangzhou Gunagri Stock Co. was the second highest profit making elevator firm that witnessed an increase of around 19.35% from the previous year and scored a net revenue income of RMB 90 million, the company has huge prospects in the coming quarters as it experienced a jump of 31.87% in the Q1 for 2014.
As mentioned, maintenance plays a vital role in the elevator industry and companies enjoy a big share in their profits due to the work-in-progress stages. According to the information from the market research reports, all manufacturers are involved in the repair services in Chinese elevator industry. The competition is tough and Expert Shenyang Brilliant Elevator Co. has the most earnings coming through the maintenance job.
Maintenance- A Big Profit Generator:
The funds coming from repair works are growing at a rate of 31.4% on a year on year basis with a total of RMB 280 million which is around 16.9% of its total income. The income share coming from maintenance segment was around 9% for the company in 2010, thus this indicates the importance of the maintenance segment.