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

Among the top 50 global construction machinery manufacturers, 39 foreign companies have entered China, of which 37 have established a complete business system. Such numbers are sufficient evidence of the fierce competition in the Chinese construction machinery market. Su Zimeng used three words to summarize the Chinese construction machinery market - "the most open in the world," "the most competitive," and "the highest degree of internationalization.".
It has been proven that the scale of China's construction machinery market has jumped to the top in the world, and China has become a strategic focus for foreign enterprises to expand globally. Most of these enterprises have also invested in establishing manufacturing and research and development bases, continuously improving their layout in China. The reason for the most competitive situation not only comes from foreign enterprises, but also from domestic construction machinery enterprises in China.
In 2010, XCMG Group, the largest enterprise in the field of construction machinery in China, had a revenue of over 66 billion yuan; Zoomlion Heavy Industry reached 52.3 billion yuan; Sany Group has exceeded 50 billion yuan. Among the top 50 global construction machinery manufacturers in 2011, XCMG Group, Zoomlion Heavy Industry, and Sany Heavy Industry ranked among the top 10. China's construction machinery manufacturing industry has seen an increasing number of super large enterprises with world-class scale and competitiveness. At the same time, with the intensification of global integration, the "going out strategy" of China's construction machinery industry has been upgraded. Chinese enterprises are actively seeking greater development worldwide, and Chinese construction machinery enterprises are continuously integrating into the world. The relationship between China and the world's construction machinery industry has entered a new stage.
The Chairman of XCMG summarized this situation as "one in, one out" "One entry" refers to foreign enterprises entering China one after another, laying more and more substantial chess pieces in China, and introducing more concepts, products, and technologies that are synchronized with the world into China. "One export" refers to Chinese enterprises accelerating their overseas expansion and vigorously promoting international market expansion. Between "one in, one out", the overall competitive strength of China's construction machinery industry is fully aligning 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 advanced methods such as overseas factory construction and overseas acquisitions.
In recent years, China's construction machinery industry has achieved significant results in the transformation of development mode and economic structure adjustment. Most Chinese enterprises have gradually transitioned from simple scale driven growth and market driven development to value driven growth. Their comprehensive strength has rapidly increased, and their international competitiveness and industrial status have greatly improved.
Industry insiders believe that after a sweet period of rapid development in China's construction machinery industry, the entire industry's production and sales have been declining since April this year. This indicates that the market turning point has arrived, and the market dominated by the middle and low-end may face a new round of reshuffle. There are many pessimistic emotions about the future market prospects. However, the development of the construction machinery industry can easily lead to misunderstandings from the outside world. In reality, the turning point of the construction machinery industry is not from growth to decline, but rather from high-speed growth to stable growth.
The Chairman of Zoomlion predicts that the market size is still on the rise 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 have been summarized by industry insiders as two: first, weak global economic recovery and tight domestic monetary policy; Secondly, overcapacity has led to a decline in sales for various enterprises. The production capacity is rapidly increasing, and overcapacity should be said to be a prominent problem facing the Chinese construction machinery industry, which also leads to exceptionally fierce market competition.
Tony Haier, Global President and CEO of Doosan Construction Machinery, stated that overcapacity is beginning to emerge in China, with too many participants entering the market. Compared to many bearish views, many leaders of large enterprises appear confident in the future market trends.
Chinese construction machinery enterprises have all grown up relying on the expansion of China's infrastructure and the rapid development of the national economy, especially in the past decade. It can be said that Chinese construction machinery enterprises are all good examples, all of whom have developed strong martial arts skills in an era of full competition and competition, cooperation, and development with domestic and foreign counterparts. Chinese construction machinery enterprises still have a bit of confidence, as they have indeed made progress in recent years. The Chinese construction machinery industry and enterprises have now achieved qualitative improvements in their concepts and strategies, and have moved beyond China to the world in their manufacturing systems and levels.
Entrepreneurs' confidence comes not only from themselves, but also from their judgment of macroeconomic trends. China will invest heavily in the construction of water conservancy facilities and affordable housing in the future. At the same time, there will also be vast space for the slow construction of high-speed railways and nuclear power plants.
An example - in coastal areas such as Jiangsu, China, there will not be more new road construction, but a large number of roads are also entering the maintenance period. With the increasing traffic volume, the demand for road rescue equipment is increasing.
The current global economic situation is indeed in a complex stage. From the perspective of Europe and America, the economy may decline and bottom out again. However, emerging markets still maintain a good trend, while Brazil, India, and Russia continue to maintain an upward trend. Data shows that global industrial sales have exceeded the $200 billion mark, and the global construction machinery industry is shifting towards emerging markets, both in terms of regional market size and overall focus.
At the same time, we also see that the overall situation in Latin America, Southeast Asia, and Africa is still good. So the impact on Chinese construction machinery enterprises is not too significant. In the European and American markets, the market share of Chinese enterprises is not high, so the economy in the European and American markets is slightly weak, which has little impact on Chinese enterprises.
Komatsu Co., Ltd., President and CEO of Komatsu Production Co., Ltd., Kunio Nomura, is also optimistic about emerging markets. There is great potential in the future, and in emerging countries such as China, Brazil, Russia, and many African countries, the economy will continue to grow in the next 10-20 years. However, in the short term, China alone cannot drive the world's economy. The population of North America is also increasing, and there is still economic potential. We believe that North America's economy will recover next year and the year after, and China, Asia, and South America will also experience growth.
Taking advantage of the downturn to invest in technology and cultivate talents, while closely monitoring 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, with various enterprises busy with delivery and production. At that time, it is bound to delay time in management, technology, market innovation, and talent cultivation. Although Chinese construction machinery enterprises have made great progress, some of them still have a certain gap in technology level, innovation ability, and product level compared to international advanced enterprises. They must continue to learn, complement each other's strengths, and innovate and upgrade. When the market returns to rationality, manufacturing companies should better study customer needs.
The Chinese construction machinery industry needs to be integrated, focusing on customer needs and after-sales service. The construction machinery industry needs to integrate resources.
If viewed by high-quality standards, the production capacity of China's construction machinery industry is not excessive. Currently, some Chinese enterprises are producing low-quality and low technology production capacity, which will gradually be phased out during this round of adjustment. Chinese enterprises will increase their technological investment through this, and there is still a lot of room for future production capacity growth. Avoid being impulsive and blindly pursuing so-called unattainable things. The equipment manufacturing industry is a strategic industry that provides technical equipment for the development of the national economy and national defense construction. It is an important guarantee for the upgrading and technological progress of various industries, and a concentrated reflection of the comprehensive strength and technological level of the country.
The transformation and upgrading of China's construction machinery industry should start from four key aspects. Firstly, we need to enhance our independent innovation capabilities, focus on improving our technological level, and strive to make significant breakthroughs in addressing the shortcomings of key core components and other industrial chains. The second is to promote the deep integration of industrialization and informatization, promote the in-depth application of information technology in enterprise research and development design, production and manufacturing, business management, marketing and logistics, and accelerate the transformation of manufacturing models to intelligence, networking, and service-oriented. The third is to promote green and low-carbon development, promote the transformation of resource utilization towards intensification, efficiency, cleanliness, and safety, and vigorously develop energy-saving and emission reduction technologies, equipment, and services. The fourth is to accelerate the cultivation of independent intellectual property rights and independent brands, develop large enterprises and groups with international competitiveness, promote strong alliances of advantageous enterprises, cross regional mergers and acquisitions, overseas mergers and investment cooperation, deeply implement the "going out" strategy, and improve the level of international operations.