Interpretation: The inflection point of the construction machinery industry is not from growth to decline

"Of the 39 foreign companies in the top 50 global construction machinery manufacturers, 37 of them have entered China and built a complete business system." Such figures are enough to prove the situation of the Chinese construction machinery market. Su Zimeng summed up China's construction machinery market in three words - "the most open in the world", "the most competitive" and "the highest degree of internationalization".


        Facts have proved that the scale of China's construction machinery market has jumped to the world's largest, and China has become the strategic focus of foreign companies' global expansion. Most of them have also invested in the establishment of manufacturing and R&D bases to continuously improve their layout in China. The reason for "the most complete competition" comes not only from foreign companies, but also from local Chinese construction machinery companies.


        In 2010, XCMG, the largest enterprise in China's construction machinery field, had an operating income of more than 66 billion yuan; Zoomlion reached 52.3 billion yuan; Sany Group exceeded 50 billion yuan. Among the top 50 global construction machinery manufacturers in 2011, XCMG, Zoomlion, and Sany ranked among the top 10. More and more companies with world-class scale and competitiveness have emerged in China's construction machinery manufacturing industry. very large enterprises. At the same time, with the intensification of the global integration trend and the upgrading of the "going out strategy" of China's construction machinery industry, Chinese enterprises are actively seeking greater development all over the world, and Chinese construction machinery enterprises are constantly integrating into the world. The relationship between them has entered a new stage.


        The chairman of XCMG summed up this situation as "one in and one out". "One in" means that foreign companies have entered China one after another, laying more and more substantive chess pieces in China, and synchronizing more concepts and products with the world. , the introduction of technology into the country. "One out" means that Chinese companies are also accelerating their overseas expansion and vigorously promoting international market expansion. Between "one in and one out", the overall competitiveness of China's construction machinery industry is fully docking with the world's most advanced level. At present, the overseas promotion of Chinese enterprises has initially bid farewell to the simple product export model, and turned to high-end methods such as overseas factory building and overseas acquisition.


        In recent years, China's construction machinery industry has achieved remarkable results in the transformation of the development mode and the adjustment of the economic structure. Most Chinese enterprises have gradually realized the transformation from the simple scale growth and market-driven development in the past to the value-driven growth. The comprehensive strength has been rapidly enhanced, and the international competitiveness and international industrial status have been greatly improved.


        Some people in the industry believe that after the rapid development of my country's construction machinery industry and a sweet period, the production and sales of the entire industry began to decline from April this year. "This indicates that the inflection point of the market has arrived, and the market dominated by the low-end and mid-end may face a new round of reshuffle." There are many pessimistic sentiments about the future market prospects. However, the development of the construction machinery industry is easy to cause misunderstandings from the outside world. The actual situation is that the inflection point of the construction machinery industry is not from growth to decline, but from high-speed growth to steady growth.


        The chairman of Zhonglian predicts that the market size is still rising, and the growth trend will not change next year. Zhan Chunxin's view is that the overall growth rate of the industry has begun to slow down. The reasons for this result are summed up by industry insiders as two: one is the sluggish global economic recovery and tight domestic monetary policy; the other is the decline in sales of various companies due to excess production capacity. Production capacity is growing rapidly, and overcapacity should be said to be a prominent problem faced by China's construction machinery industry, which also leads to extremely fierce market competition.


        Tony Haiershan, global president and CEO of Doosan Infracore, said overcapacity is starting to appear in China, with too many players entering the market. Compared with many bearish views, the heads of many large enterprises appear to be very confident about the future market trend.


        China's construction machinery enterprises have grown up relying on the expansion of China's infrastructure and the rapid development of national economic construction, especially in the past 10 years, there has been a rapid development. It can be said that all Chinese construction machinery enterprises are good, and they have cultivated a strong martial arts in an era of full competition and the competition, cooperation and development of domestic and foreign counterparts. China's construction machinery companies are still a little emboldened, because they have indeed made progress in recent years. China's construction machinery industry and enterprises have now achieved qualitative improvement in terms of concept and strategy, and in terms of manufacturing system and level, they have stepped out of China and gone global.


        Entrepreneurs' confidence comes not only from themselves, but also from their judgment on macroeconomic trends. There will be a lot of investment in the construction of water conservancy facilities and affordable housing in China in the future.


        An example - in coastal areas such as Jiangsu in my country, there will be no more new highway construction, but a large number of highways have also begun to enter the maintenance period. With the increasing traffic flow, the demand for road emergency equipment is getting higher and higher.


        The current global economic situation is indeed in a complicated stage. Judging from the situation in Europe and the United States, the economy may decline and dip again, but the emerging markets still maintain a good trend, and Brazil, India and Russia still maintain an upward trend. Data shows that global industrial sales have exceeded the US$200 billion mark. Whether it is the regional market size or the overall focus, the global construction machinery industry is shifting to emerging markets.


        At the same time, we also see that the overall situation in Latin America, Southeast Asia and Africa is still good. Therefore, the impact on Chinese construction machinery enterprises is not too great. In the European and American markets, the share of Chinese companies is not high, so the slightly weak economy in the European and American markets has little impact on Chinese companies.


        Kunio Noji, president and CEO of Komatsu Manufacturing Co., Ltd., is also bullish on emerging markets. There is great potential in the future. In emerging countries, China, Brazil, Russia and many African countries will continue to grow their economies in the next 10 to 20 years. But in the short term, China alone cannot lead the world's economy. North America's population is also growing, and the economy has potential. We think the North American economy will recover next year and the year after, and China, Asia, and South America will also see growth.


        Investing in technology to cultivate talents while paying close attention to the future development of the market, the production of enterprises may not be as busy as before, so what should enterprises do? The construction machinery market has gone through a very hot stage. Companies are busy with delivery and production. At that time, time will inevitably be delayed in terms of management, technology, market innovation and talent training. Although Chinese construction machinery enterprises have made great progress, some enterprises still have a certain gap compared with international advanced enterprises in terms of technical level, innovation ability and product level. They must continue to learn, learn from each other, and innovate and upgrade. When the market returns to rationality, manufacturing companies should better study the needs of customers.


        China's construction machinery industry needs to be integrated, focusing on customer needs and after-sales service. The construction machinery industry should integrate resources.


        According to high-quality standards, the production capacity of China's construction machinery industry is not excessive. At present, the production capacity of some Chinese enterprises is the production of low-quality and low-tech production capacity, which will be gradually eliminated in this round of adjustment process. Chinese enterprises will use this to increase technology investment, and there is still a lot of room for growth in future production capacity. Don't be impetuous and blindly pursue the so-called hard-to-reach things. The equipment manufacturing industry is a strategic industry that provides technical equipment for the development of the national economy and national defense construction.


        The transformation and upgrading of China's construction machinery industry should start from four key aspects. First, it is necessary to enhance the ability of independent innovation, focus on improving the technical level, and strive to make major breakthroughs in the shortcomings of the industrial chain such as key core components. The second is to promote the in-depth integration of industrialization and informatization, promote the in-depth application of information technology in enterprise R&D and design, production and manufacturing, operation management, marketing and logistics, and accelerate the transformation of manufacturing models to intelligent, networked, and service-oriented. The third is to promote green and low-carbon development, promote the transformation of resource utilization to intensive, efficient, clean and safe, and vigorously develop energy-saving and emission-reduction technologies, equipment and services. Fourth, it is necessary to accelerate the cultivation of independent intellectual property rights and independent brands, develop large enterprises and groups with international competitiveness, promote the alliance of powerful enterprises, cross-regional mergers and acquisitions, overseas mergers and acquisitions and investment cooperation, and implement the "going out" strategy in depth to improve International business level.