China Construction Machinery Industry Market Confidence Uninterrupted

The Global Industry Annual Feast hosted by the China Construction Machinery Industry Association, the American Manufacturers Association, and the Korea Engineering Machinery Association, was held in the China World Hotel. The Global Construction Machinery Industry Conference & Top 50 Summit (English name: T50 Forum) was held. It is understood that the giants from the field of global construction machinery focused on the theme of “opportunity, integration, and response” and conducted in-depth discussions on the development situation of the construction machinery industry, the direction of industrial transformation, and the prospects for economic recovery.

Reshaping the New Global Structure In the post-financial crisis era, the global economic fluctuations, the shift of market “active zones”, the rise of emerging industries, and the offensive and defensive practices of traditional giants are all reshaping the new pattern of the world’s construction machinery industry. And the entire industry is pushed to an unprecedented historical stage and juncture. At present, the sales revenue of the global construction machinery industry has exceeded the USD 200 billion mark. Regardless of the regional market scale or the overall center of gravity, the global construction machinery industry is shifting to emerging markets, and the entire industry is moving toward unprecedented historical stages and times. Both China's construction machinery industry faces new opportunities and challenges.

After years of rapid development, the market size of China's construction machinery has leapt to the top in the world. In 2011, the scale of the industry will exceed 500 billion yuan. The huge potential of the Chinese construction machinery market has become one of the most open, competitive, and internationalized markets in the world. Today, 39 of the world's top 50 construction machinery manufacturers, of which 37 have already entered China, have established a sound business system. Many companies have also invested in the establishment of manufacturing and R&D bases for local production.

Leading elites in the "top places" of global industries such as Caterpillar, Komatsu, Hitachi Construction Machinery, Terex, XCMG, Zoomlion, Liugong, Xiagong, etc. conducted in-depth exchanges and discussions on this series of issues. , Seeking the industry's best growth model in the new situation.

Wang Min, chairman and president of XCMG, believes that Chinese companies are accelerating their integration into the world and become an important driving force for global industrial development. In this process, on the one hand, foreign companies have stepped into China, laid down more and more solid pieces in China, brought more ideas, products and technologies that are synchronized with the world into China and promoted the faster development of the Chinese construction machinery industry. . At the same time, Chinese companies are also accelerating their journey to the sea and vigorously promote international market expansion. At present, the overseas promotion of Chinese companies has initially bid farewell to the simple export model of products, and has instead invested in high-end methods such as overseas construction and overseas acquisitions. This "between one entry and one exit," the overall competitive strength of China's construction machinery industry, is now fully connected with the world's most advanced level. ”

The industry is returning to a rational track At present, although the global economic situation is complicated, the global construction machinery industry still has a growing market base, and the European and American economies are still the key factors affecting the growth rate of the global construction machinery industry. In the long run, if the economy of Europe and the United States continues to slump and China's macro-control does not relax, the global construction machinery industry will be greatly affected. Judging from the global construction machinery business climate index, the financial crisis in 2008 was -80%, and this year it recovered to a high of 66.1% in January and then fell to -20.2% in September. The impact of the financial crisis is far from over.

From the perspective of the Chinese construction machinery industry, due to the low market share of Chinese construction machinery products in Europe and the United States, the current weakness in the European and US markets has had little impact on the Chinese construction machinery industry. The annual economic growth target set by the Chinese government is a "fixing pill" for the growth of China's construction machinery market. The increase in urbanization rate and mechanization rate, the construction of affordable housing, large-scale infrastructure such as water conservancy construction, upgrading of products with upgrading of customer demands and upgrading of technology, and improvement of post-market demand are still the main driving factors for the growth of the Chinese construction machinery market. In addition, the global market share of China's construction machinery products will also steadily increase.

As the 4 trillion economic stimulus plan launched by China at the end of 2008 comes to an end, the decline in investment in fixed assets, the increase in the retention of construction machinery products, and the decrease in the return on investment of customers (the cost of single-hour work hours, the increase in manpower and fuel costs). Against the backdrop of weak internal and external demand, the Chinese construction machinery industry is gradually returning to a rational and stable growth. The high-speed growth in 2010 and the first quarter of this year will be difficult to reproduce. The growth rate of China's construction machinery market and even the global construction machinery market will surely slow down. From this perspective, the global construction machinery industry will become increasingly fierce.

As for the Chinese construction machinery industry's sales in the second and third quarters of the year and in the coming period, it can be predicted whether the "diving" is "cooling" or "winter". The Chinese and foreign giants have different opinions. Some believe that the sales of the Chinese market in 2010 and the first quarter of this year are extremely hot (overdraft in advance), resulting in poor year-on-year sales in the second quarter and early next year. The Chinese construction machinery industry is experiencing “cooling down”; at the same time, the Chinese market We have not experienced the "winter" in the true sense. China's construction machinery companies are still not aware of the cycle and their risks are high. Some believe that the Chinese government’s macroeconomic regulation, tightening monetary policy, and the second round of economic exploration in Europe and the United States have brought the “cold winter” of the Chinese construction machinery industry.

Whether it is "cooling down" or "winter", the market correction is becoming an opportunity for China's construction machinery companies to "work hard". In the past two years, the Chinese construction machinery industry has experienced an extraordinary period of intense and busy production and delivery, which has delayed management, technology, market innovation and personnel training. The return of the market to the track of scientific rational development is exactly the opportunity for Chinese construction machinery companies to think about how to “strengthen their internal strengths”, strengthen internal potential exploration, build their own core competitiveness, and even enhance their own market position.