Construction Machinery Industry Enters into Sustainable Development Period

Construction Machinery Industry Enters into Sustainable Development Period The construction machinery industry is one of the pillar industries in the development of the national economy. In the past ten years, China's construction machinery industry has achieved remarkable results in terms of changes in its development mode and adjustment of its economic structure. Both its production and sales volume have leapt to the top in the world, its overall strength has rapidly increased, and its international competitiveness and industrial status have greatly improved.

"However, after ten years of rapid growth, we have begun to shift to a period of medium-term growth. In adapting to changes in the industry, enterprises must strengthen industry self-regulation, regulate market competition, and discard the bad habits that are not conducive to the development of the industry. Industry health and sustainable development, Lu Ying, deputy secretary-general and senior engineer of China Construction Machinery Industry Association, said in an interview with the China Industry News reporter on April 17.

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“Under the current development situation, companies must first adjust their mentality, and high-speed growth is not the goal that they are now pursuing. The most important issue for enterprises is to constantly upgrade their brand and technical strength.” Lu Ying analyzed that from the current situation Look, although the industry is in the transition stage, the market demand for construction machinery is still strong, and the demand in the global market is still very considerable. In the era of rapid growth in the past, companies simply attacked cities and pursued scale expansion and market share. As a result, many problems in the industry have not been solved. Now that the industry has entered a period of medium-term growth, there is just enough time and conditions to solve some of the problems that were not digested in the past. problem.

This is a necessary stage for the industry to reach a certain level of development. Enterprises must change and adjust their understanding, and must adapt to the current state of industry development. From the passive adjustment of the past to the active adjustment of the present, attention has been focused on the deep problems that companies urgently need to solve, such as the improvement of management level and R&D capability.

At present, there is still a certain gap between the recognition of domestic brands and foreign brands in the users' hearts, and the products and brands of some foreign companies have a stable market position and loyal users at home and abroad. “Users have their own yardsticks for measuring product quality. Brands with long-term stability, reliability, and cost-effectiveness have a high level of recognition in the market. Despite the high prices of foreign products, sales have remained relatively stable despite the development of the market. Domestic companies have obvious shortcomings in this respect and need to redouble their efforts.” Lu Ying said that in the future, the conditions for rapid growth of the industry and the space for rapid expansion will hardly reappear, but there is still potential for industry development, which requires users to increase Product quality, performance, brand awareness, and more.

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In this regard, some companies with strategic vision have realized this problem during the period of rapid development of the industry. Now that the market is down, some companies have not only declined or declined slightly, but have even risen steadily on individual indicators. For example, Xugong Group has exceeded the 100 billion yuan mark; Zoomlion’s profit growth has been a breakthrough; recently, Sany Heavy Industry ranked fifth in the world’s top 50 list of engineering machinery issued by an authoritative media worldwide; According to the latest statistics, Anhui's forklifts both exceeded 10,000 units in both production and sales in March this year.

"These companies have not only a strategic vision for development, but also have a deep understanding of their own and industry development," said Lu Ying. He suggested that in the current environment of market development is not very stable, each company should quickly identify their own market positioning, timely development of the development strategy under the new situation, especially in improving product quality and cost-effective to more Great effort.

Regulating market competition At present, the price war has become an unavoidable issue. In the process of competition for the market, enterprises have adopted zero down payment, low down payment sales, and other models, which have led to a large increase in accounts receivable and increased business risks. Here, Lu Ying calls for companies to maintain rational and healthy competition and calmly face market competition.

In addition, at present, China's construction machinery market, the issue of excess capacity still exists. Take the hydraulic excavator as an example, the domestic production capacity has been more than 600,000 units, which is higher than the global market sales in 2012. The same situation exists in different degrees in other engineering machinery products.

From the second half of 2011 to the end of 2012, the adjustment period of the construction machinery industry during this period will be a good thing for the development of the industry, so that the entire industry can seriously consider how to deal with the unfavorable situation, how to train hard, and develop soundly. At present, the effect of the national steady growth policy is gradually emerging, and the overall situation of the industry in 2013 is promising. Of course, it is still very difficult for the industry to return to its pre-2011 level. But judging by Jun Jun, president of the Construction Machinery Industry Association, overall, in the next 20 years, the industry will have good development prospects; the industry will continue to develop steadily, and the ups and downs will rarely occur.

Promoting Sustainable Development At present, from the overall perspective of the industry, it shows a negative growth trend, but this does not mean that the industry is declining. This can only be regarded as a “painful period” in the process from rapid growth to stable growth. But how long will it take for this period to pass, and Lu Ying uses the “how long it has and how high vertical it has” in the stock market to describe the time span for which this “pain period” will continue.

"Only by digesting these problems accumulated in the fast-growing period of the past decade will it be possible for enterprise development to be stable before it can truly transition to the stage of sustainable development," said Lu Ying. At present, while China's construction machinery is changing the world's construction machinery industry pattern, it is also working hard to change the current problems in the industry's own development. The development of the industry needs policy support, and it also requires everyone to work together. In Lu Ying’s view, improving the production capacity of high, refined, and sharp products by domestic companies is also a direction in which efforts need to be made. Take large-scale construction machinery as an example, due to its complex manufacturing technology, difficult manufacturing, small production volume, large value, and high operational risks, many construction machinery companies are unable to get involved before the National "Tenth Five-Year Plan" is issued. Because of the national large-scale infrastructure, petrochemical, metallurgy, electric power and other construction projects, the national "Eleventh Five-Year Plan" has established the development goal of research and development of large-scale construction machinery and equipment urgently needed by the country.

Under the support of a series of industrial policies and fiscal policies of the country, a group of key enterprises have now been able to manufacture 26 kinds of engineering machinery products that are common in the international market, and their quality is not inferior to foreign products. Among them, large crawler cranes, all-terrain cranes, large bulldozers, large-scale concrete pump trucks, pavers and other products are sold around the world.

In the process of promoting the production of high-precision fine products, an important issue that needs to be solved is still that the key components of large-scale equipment mainly depend on imports. Due to the extremely harsh operating environment of construction machinery, the demand for accessories is high. At present, key components such as control systems, high-performance engines, high-pressure hydraulic parts, and high-strength ductile iron shell parts all rely on foreign brands or imports. According to the data, although the export of the foundry industry is strong, most of China's exports are low-end castings. However, foreign countries that import them into the Chinese market in turn are high-end casting products. The constraints on accessory parts are also a challenge to the development of the industry.

Fortunately, the construction machinery industry and related upstream industries are making unprecedented efforts, and some high-end complementary products have achieved initial results in R&D and trial production. The government departments have also given great attention and support. The industrialized collaborative work platform for high-end hydraulic components and systems for construction machinery led by the Ministry of Industry and Information Technology has begun to operate. It is believed that in the near future, key components of construction machinery will not only meet the needs of the domestic market, but also provide high-performance, high-value-added products to foreign companies. By then, the dream of a powerful country in the construction machinery industry will no longer be a dream.

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