Operating rate stands at 34%, yet sales surge by 30% — What lies behind the "misleading data" in the construction machinery industry?

In the first quarter of 2026, two contradictory sets of data emerged in the construction machinery industry.

On one hand, excavator sales rose by nearly 20% year-on-year, loader sales increased by 27.3%, and exports soared by 36.1% — all pointing to a booming market.

On the other hand, the average operating rate of construction machinery nationwide stood at merely 34.40%. In other words, two out of every three machines were left idle.

Sales keep climbing while actual operation declines. What is really happening behind the figures?

I. The Untold Truth Behind the 34% Operating Rate

According to the CCTV Finance Excavator Index, the average operating rate of domestic construction machinery hit 34.40% in the first quarter of 2026. Though it rebounded to 41.49% in March, it remained at a relatively low level historically.

This figure indicates that the newly sold equipment has not all been put into effective operation. Three main reasons account for this phenomenon:

First, a concentrated wave of equipment renewal. A large number of China Stage III and Stage IV machines have entered the mandatory phase-out period. Purchasing new equipment does not equate to immediate work availability, as old models are no longer permitted for use.

Second, crowding-out effect of used equipment. New machine sales have squeezed the market space for second-hand units. Numerous old machines have been phased out ahead of schedule, flowing into the used equipment market or simply parked for sale.

Third, extended payment cycles for engineering projects. Burdened by fiscal pressure, local governments have delayed fund disbursement for some infrastructure projects. As a result, construction contractors hesitate to take new orders or hold off on construction pending payment.

II. Electric Loaders: A Quiet Revolution Behind the 62.7% Penetration Rate

If the low operating rate serves as a cold reminder, the data on electric loaders reflects a vigorous transformation.

Key statistics for loaders in April 2026:
Total sales: 15,432 units, up 32.4% year-on-year
Domestic electric loader sales: 5,273 units
Domestic electric penetration rate: 62.7%
Exports (including electric models): 302 units, a year-on-year increase of 57.4%

Domestically, two out of every three loaders sold are electric, marking a revolutionary shift. For reference, the penetration rate of electric loaders was below 10% back in 2024. In just two years, such products have evolved from niche options to mainstream market choices.

Three major driving forces fuel this trend: mandatory phasing-out of non-road China Stage III equipment, far lower electricity costs compared with diesel which greatly cuts operational expenses, and high market acceptance of electric machinery in fixed scenarios such as mines and ports. Nevertheless, a notable risk exists: charging infrastructure is severely insufficient in overseas markets. With merely 302 electric loaders exported, there is a stark gap in penetration rates between domestic and overseas markets.

III. Four Major Export Segments: Where Growth Continues

Total export volume of construction machinery reached 16.066 billion US dollars in the first quarter of 2026, a year-on-year increase of 24.3%. The four major export markets show distinct growth dynamics:

Performance of Four Major Export Markets in Q1

Africa: A 77% year-on-year growth driven by mining. Around 75% of excavator demand comes from mining EPC projects.

Southeast Asia: Dividends of electrification are fully unleashed, amid intensive construction for Indonesia's new national capital.

Central Asia: A robust year for transportation infrastructure in Kazakhstan and opening-up of the mining sector in Uzbekistan.

Europe and America: Faster penetration into high-end markets, backed by advantages in electrification and intelligent technologies.

Africa remains the fastest-growing region. Robust demand for copper, gold, lithium and rare earth mining fuels the need for excavators, with 75% of orders stemming from mining projects. Enterprises including Sany and Sunward have established solid local service networks after years of development in Africa.

Meanwhile, equipment rental is gaining popularity over direct purchases in Africa, bringing both opportunities and challenges for domestic second-hand machinery exporters.

IV. Used Equipment: The Overlooked Reservoir

With booming sales of new machines, where have all the old units gone?

A great many outdated machines replaced by new ones have flooded the used equipment market. The market for small used excavators in 2026 is witnessing rising supply alongside falling prices. While demand from small construction teams, individual operators and municipal maintenance teams has grown, it cannot keep pace with the surging supply.

The biggest pain point of the used equipment industry is not lack of business, but trust deficits. Issues such as altered odometers and refurbished accident-damaged machines persist, driving up buyers' decision-making costs. Enterprises that establish unified standards for transparent equipment condition assessment will seize huge market dividends.

A fundamental transformation is underway across the industry: traditional equipment brokers are evolving into full-lifecycle management service providers.

V. Assessment: Three Hidden Risks Amid the Market Boom

To sum up, the prosperity of the construction machinery industry in 2026 is real to some extent, yet far from being fully genuine. Three hidden risks deserve close attention:

Risk 1: Sales volume does not equal actual workload. A large proportion of new machine purchases are passive replacements due to the equipment renewal cycle. Real construction demand is not as strong as the sales data suggests, which is fully reflected by the 34% operating rate.

Risk 2: Uneven electrification development at home and abroad. The domestic penetration rate of electric loaders hits 62.7%, while exports of such models stand at only 302 units. The shortage of overseas charging infrastructure, after-sales service systems and parts supply chains will remain a tough bottleneck in the short term.

Risk 3: Overstock crisis in the used equipment market. Massive retired machines keep pouring into the second-hand market, and excess supply may push prices down continuously. Without standardized evaluation systems and transparent trading rules, the market may fall into a vicious cycle where inferior products drive out high-quality ones.

Data can be misleading, but industry trends never lie. The core competitiveness for players in this sector lies in identifying the real demand behind sales figures.