Lift Report

Statistics tell us that prior to 1949 there were fewer than 10,000 lifts in place in mainland china. 2,249 lifts were built in 1980. By 2005, annual production had grown to 135,000. Thus, production rose by a factor of 59 in a period of 25 years, representing to an average annual growth rate of 17.8 %. Production in China accounts for more than one-third of the world’s entire output, making China has the world’s largest market for lifts. Growth in Chinese elevator production since 1980 is illustrated in Figure 1. In the year 2005, 124,465 lifts were installed, inspected and approved. At the close of last year, a total of 651,794 units were in service in China.

Three international brands – OTIS, MITSUBISHI and HITACHI – hold more than 50% of the market. In 2005 production at Shanghai MITSUBISHI exceeded 20,000 units. With this kind of volume, a single production plant could itself lay claim to a premier position in the world’s elevator industry. Moreover, production at other companies – such as Schindler, Kone, ThyssenKrupp, TOSHIBA and FUJI – has risen, though the extent varies, and most of them have reached the highest level in their development histories. Global elevator brands account for about 80% of the overall market.

A large number of small and mediumsized enterprises continue to account for a certain market share. The strong competition has stimulated their development efforts and their advancement. The production situation and product quality in a number of SMEs (such as Jiangsu KANGLI, Suzhou SHENLONG, Jiangnan JIAJIE, Jingchen ZHONG’AO, Shandong BESTER, Shenyang SANYO, BOLINTE, Liaoning FUJI und XUJI Lifts) have attained a level similar to that found in the majors.

The hydraulic lifts engineered by DONGNAN and KEDA in Suzhou and the explosion-proof elevator made by the Shanghai Building Equipment Company have responded to the many and varied demands of the elevator market. More than 100 small companies, each with a market share of less than 1 %, are actively taking part in the battle to occupy market niches . Given the intense competitive situation, they have given their all, staunchly contending for position, and have ultimately claimed a place for themselves. At present, domestic elevator brands account for about a 20 % share of the Chinese market.

Since joining the TC178 committee (ISO technical committee for elevators, escalators, moving walkways), China has taken an active part in ISO proceedings while maintaining lively communications and continuous exchange with the elevator standardization organizations in Europe, North America and the Asia-Pacific region. In so doing, China is becoming familiar with the technical standards in force in the more advanced countries and regions. Following the demands of a market economy, China is reorganizing its system of standards, a system that for many years was strongly influenced by state planning. A new system of elevator standards is being established, step by step, in China, and it will comply fully with international standards. China’s technical standardization committee for elevators is observing with great interest developments in international standards. The most important technical standards duplicate directly the international or European norms. GB 7588 (safety standard for the production and installation of elevators) corresponds to EN 81, for instance. GB 6899 (safety standard for the production and installation of escalators) is comparable to EN 115. A few other government standards are still being worked out, once again in close emulation of international norms. A system of standards such as this gives the most advanced elevator products easier access to the Chinese market. At the same time, Chinese elevator products can also enjoy more advantages when entering the international market.

Three aspects should be taken into account when observing the industry’s optimization of its structures. Firstly, the large companies place great emphasis on using the newest technologies and improving their own development expertise. Now that modern factories have been built, they are all working toward establishing a top-flight research and development center. With the increasing use of computer and electrical technology, frequency- and voltage-controlled speed regulation technologies and serial communications technology are being used everywhere. Permanent magnet drive technology has also become customary. China has become a market open to the first use of novel technologies. Secondly, elevator companies have established a sales and maintenance network. The conditions for after-sales service have been improved considerably. The share of installation and maintenance which they control has increased continuously, giving a solid foundation for safe operation of elevators and for ongoing development of the companies themselves. Thirdly, elevator component manufacturers’ production capacities have been further increased. Sawella and Monteferro, for instance, can no longer satisfy the demand for guide rails. A number of excellent Chinese elevator component supply companies – such as SHENLING and Ningbo XINDA, Zhangjiagang RUNFA, Shanghai Step, XIZI FUXIN, Laogang SHENLING, Shenyang LANGUANG, Changshu Elevator Machines, Hebei DONGFANG etc. – are developing rapidly. Specialization in production has brought about advantages including reliable quality and low prices. Thus the supply companies have not only vigorously supported the existence and development of small and medium-size companies, but have also made a contribution to optimizing the investment structure in large companies and to reducing production costs.

With the new levels of technical standards and production quality, Chinese elevator products are able not only to satisfy domestic market demand, which is growing daily; they are also becoming strong competitors on the world market. Import and export development trends for Chinese elevators are shown in Figure 2. What we see there is that imports have declined steadily over the past ten years while exports have risen each year. In 2005 China delivered a total of 14,268 units to 97 countries and regions. (This figure included 6,206 elevators, 8,062 escalators and moving walkways). During this same period, 2,271 units (including 2,226 elevators and 45 escalators) were imported. Exports exceed imports by a factor of 6.3. Projections were for exports of more than 20,000 units in 2006.

The elevator industry enjoys bright prospects. China’s population comes to 1.3 billion and there is now one elevator available for every 2,000 persons. The relation to the world average is 1:2.5 and to the industrialized countries 1:10. According to one forecast, China will build 155,000 elevators in 2006, bringing the number of units in service to almost 800,000. Thus, China will boast the largest number of elevators of any nation in the world. And in spite of this, mainland China needs another 800,000 elevators to catch up with the world average. If the number of lifts in China were to reach 1.6 million and not grow any further, then about 80,000 lifts would have to be replaced every year. And that alone is why China will remain the world’s largest elevator market for a long time to come.