Let's first look at last year's total production. In 2015 the national elevator production was 760,000 units, up 6% year on year.
By December 31, 2015 China’s elevator ownership was 4.25 million units; licensed elevator manufacturers totaled 696 ones; licensed elevator installation and maintenance companies totaled 10,326 ones. As for the performance of elevator manufacturers this year, let’s first review the speech delivered by president of China Elevator Association Mr. Li Shoulin at the 2016 annual meeting of Elevator Installation and Maintenance Committee, China Elevator Association.

Due to the pick-up in the real estate market, the elevator industry had a very good performance in the first half of this year.

The statistics of 13 investigated major elevator manufacturers  show: In the first four months the total elevator production was 116,000 units, up 6.5% year on year and the escalator production increased by 18.7%; The total contracted quantity increased by 6.4% and the contracted quantity of escalators increased by 24.4%; Installed elevators totaled 110,000 units, up 11.6% year on year;A total of 1.12 million elevators were repaired, maintained and transformed, up 22.09% year on year. 51,600 new elevators were repaired and maintained, up 87.63% year on year.

These are the statistics of 13 major elevator manufacturers and are very representative.These statistics reflect the following characteristics of the elevator industry: The production and sales goals planned by the elevator manufacturers are generally high.

1、In the stage before the planned production was completed, the ratio of the completed production to the planned completed production was 24%, lower than 33%, which means all elevator manufacturers failed to complete the plan;

2、In terms of the plan in the stage before the orders were completed, the completion rate of enterprises was 28%; only one elevator manufacturer completed the plan for this stage and its plan completion rate was 40%; the completion rate of other three manufacturers was above 30%. These two groups of statistics show that the production and sales goals planned by the 13 elevator manufacturers are generally high. Both the production and sales of these elevator manufacturers increased year on year, which means both production and sales thrived.The production and sales of the 13 elevator manufacturers increased by 6.5% and 6.4% year on year respectively, which is a very good sign. It’s the first time in the past 21 years in the elevator industry that both production and sales have increased year on year.
The production growth increased by 3.2% and the quantity of orders increased instead of declining, showing a rising trend.

3 manufacturers achieved high production and sales growths;  only 4 manufacturers experienced the year-on-year decline of production while in March the production of 6 manufacturers declined year-on-year; the production decline of 2 manufacturers reduced as compared with the previous months. 3 Elevator manufacturers well handled the inventory backlog.

The above data shows that the estimation and prediction of the objective situation made by the elevator manufacturers have become increasingly accurate and the elevator inventory has declined year by year.Both the elevator production and sales increased greatly. It’s the first time in years that both production and sales have thrived.The elevator industry handled the inventory backlog quite well.

4 The total production of escalators increased substantially and will increase greatly in the future.

The total production of escalators increased by 18.7% year on year. The production of escalators of 7 manufacturers increased by 25% year on year and the contract volume of 6 manufacturers increased by 33%.The increase in escalator orders ensures the continuous growth and leading role of the elevator industry and there emerges the situation in which both production and sales thrive. It’s attributed to the increase in the increase in the number of opened and completed subways and other public works, especially the increase in the supporting facilities in shopping malls and hospitals.It’s predicted that in two to three years the order quantities of escalators will increase substantially.

5 The elevator installation, repair, maintenance and transformation growth was rising.The year-on-year growth of elevation installation and maintenance has increased to 6.7% and 2.6% respectively.The biggest feature of the elevator industry in the first half of this year is that both production and sales tended to be balanced and the elevator installation, repair, maintenance and transformation growth was also rising substantially, which was a quite good situation.

Some people working in the elevator industry might question the above data. Why is that both the production and sales of the above-mentioned 13 elevator manufacturers increased while those of ours declined? Indeed, it is the present situation in the elevator industry. The strong has become increasingly strong while the weak has become increasingly weak.

It is like the situation in the real estate industry this year. Large real estate companies thrive while small ones have difficulty surviving.

It is difficult to sell houses in the third- and fourth-tier cities while the real estate market in the first- and second-tier cities is extremely hot. The real estate companies in the first- and second-tier cities attach great importance to the elevator brand. Except those that have signed strategic agreements with the real estate companies, these elevator manufacturers face very fierce competition. In the first half year of 2016 there were a total of government elevator procurement projects with a total procurement amount of RMB 2.69 billion. As a result, elevator companies without very powerful brands need to make efforts in this aspect. After all, it is highly operational.

Finally you must be concerned about the overall production of elevator manufacturers this year. Last year a total of 760,000 elevators were produced. Judging from the present data, this year’s total elevator production might be at the same level as last year or achieve a growth of 1% to 2% as compared with last year. However, the contracted quantity and profit might decline!