Construction machinery industry bid farewell to the golden age?

The Chinese construction machinery market, which has been upgraded to the "biggest" in the world, suddenly encountered an "inflection point" in the second quarter of this year. According to statistics from the China Construction Machinery Industry Association, since April 2011, sales of major construction machinery products, including excavators, loaders, and bulldozers, have begun to drop sharply, with year-on-year declines of 38.79%, 28.27%, and 32.81%, respectively. . Among them, the excavator market has seen a rare increase in the history of development and a double reduction in scale.

The entire industry is filled with confused emotions. Is the golden age abruptly ended, or is it crazy to return to rationality? How can the industry experts who are onlookers know how to predict the trend, and how do the companies in the company face changes and plan for the future?

At the "Global Engineering Machinery Industry Conference" held recently, giants of domestic and international construction machinery and many industry experts discussed and discussed issues such as the industry development situation, the direction of industrial transformation, and the prospects for economic recovery.

Jun Jun, President of China Construction Machinery Industry Association: "The long-term development of vicious competition must be avoided"

At present, China's construction machinery market is in a high-speed growth period, although there may be some market fluctuations during the period, but in the next 10 years or even longer, this high-speed development momentum will not change.

With the entry of more and more foreign companies and the rise of local companies, the competition in the Chinese construction machinery industry has become more intense. To seize more shares, many companies have focused their attention on the market. Under fierce competition, in order to ensure that the sales volume continues to grow, companies have begun to make a fuss about marketing, especially promotion. Especially in the subdivision areas represented by cranes, excavators, etc., since 2011, price competition has become increasingly fierce, and zero-down payment and disguised price reduction have been frequently used. In the short term, this can lead to sales, but in the long run, this vicious competition will damage and overdraw the long-term development of enterprises, bring great risks to enterprises, will also reduce the threshold for users to enter, disrupt the order of the construction market. This is something that the entire industry does not want to see. It is also something we must avoid.

XMG Chairman Wang Min: "It's Time to Remove Impetuosity and Accelerate Innovation"

Chinese enterprises have grown up relying on the expansion of China’s infrastructure and the rapid development of the country’s economic construction. This is a fertile soil.

Since April of this year, most of the products of construction machinery have been falling month by month. I feel that this fall is related to the economic regulation of the country and it is also normal. Because China's construction machinery market has indeed experienced a very hot, busy production and delivery of the era. In this era, companies have products on the line, there is a low level of excess production capacity, management innovation, technological innovation, market innovation, personnel training, etc. are ignored.

Similarly, when the market returns to rational development, as a manufacturing company, it is necessary to remove impetuous mentality, seize the opportunity to study the needs of customers, the needs of the market, and accelerate the pace of technological innovation and internationalization. It is hoped that Chinese companies will focus on the strategic and safety aspects of finance while marketing, so that the market will have a healthy competitive environment and ensure the safety and sustainable development of the entire industry.

Zhan Chunxin, chairman of Zoomlion: "The problem of overcapacity will be very serious."

Although the construction machinery industry in China has momentum and vitality in the process of the construction of affordable housing, water conservancy, and urbanization, the demand for the construction machinery industry has begun to slow. The outstanding problem faced by the entire industry is the sharp increase in production capacity. In the coming months and in the next year or two, the issue of overcapacity will be very serious, and it will also lead to increasingly fierce competition in the market.

Therefore, tolerance and integrity are very important for companies. This point we should learn from foreign counterparts. To prevent vicious competition, because non-standard market moves will only harm the interests of the industry, and ultimately harm their own interests. There are family rules in the family and I hope we also have our own rules.

Rong Zheng, Chairman of Rongsheng Machinery: “How to Pass Safely 'Winter' is the Focus of Work”

Due to the slowdown in investment in high-speed rail, real estate control, and tighter monetary conditions, the sales volume of China's construction machinery industry fell sharply after the second quarter, showing a sluggish state. Some customers who originally planned to purchase products postponed purchases, and financial leasing was also relatively It's harder. How to survive the "winter" safely becomes the company's recent work focus.

However, China’s urbanization will provide continuous momentum. Only this one will not reduce the cake in the construction machinery market. In the context of the downturn in the industry, Rongsheng Machinery, as a new entrant, will not blindly seize the market, but must first improve its internal strength, ensure product quality, and wait for timing.