Steady foundation for stabilization of construction machinery

On October 31st, “2012 Annual Meeting of China Construction Machinery Industry Association Construction Crane Branch” was held in Taian, Shandong. Director General of the General Administration of Quality Supervision, Inspection and Quarantine, Shang Hong, Secretary-General of China Construction Machinery Industry Association, Su Zimeng, Chairman of Engineering Crane Branch, Su Jie, Secretary-General Zhang Xiaochun, Executive Vice President of Manitowoc Crane Group, Da Zhong Nuo, and other guests attended At the meeting, more than 120 complete machine manufacturers, parts suppliers and media representatives attended the meeting.

At the meeting, Su Zimeng, secretary general of the China Construction Machinery Industry Association, made a special report titled "The situation facing the construction machinery industry and the current major work." The following is a summary of the report:

Review of the economic performance of the industry

In 2011, the total operating revenue of the twenty major categories of construction machinery products was 546.5 billion yuan, an increase of 21.78% year-on-year, and the total export value was 15.909 billion US dollars, an increase of 53.8% from the same period last year.

During the first nine months of 2012, exports of construction machinery continued to increase, while imports declined. According to statistics from the General Administration of Customs, the import and export volume of construction machinery in China during the first three quarters of 2012 was US$ 18.992 billion, which was an increase of 2.60% over the same period of last year. Among them, the import amount was 4.682 billion U.S. dollars, 35.4% lower than last year; the export value was 14.31 billion U.S. dollars, an increase of 27.0% over the previous year; the trade surplus was 9.628 billion U.S. dollars, an increase of 5.605 billion U.S. dollars over the same period of last year.

Although operating income in the entire construction machinery industry continued to grow year-on-year (+0.6% year-on-year in August and positive growth in the same period in September declined to 0.02%), revenue from earth-moving machinery, lifting machinery and road machinery declined sharply. This year, it was down 38% in the same period, second only to roller products. January to August decreased by 23% year-on-year, and the month-on-month decline to 28.42% in September. At present, there are about 250,000 truck cranes on the market, of which output is about 150,000 units in recent years.

The economic operation of the entire industry from January to September 2012 can be summarized as the lack of market demand, stabilizing expectations of stabilization; sales volume continues to fall, stocks are at high levels; profits have dropped sharply, costs have increased significantly; accounts receivable are high, financial pressures have increased; exports To maintain growth, the weight remains small (less than 20%); there are signs of stabilization and the foundation is not solid.

Adjust the period of new developments in the industry

Su Zimeng said that the construction machinery industry is a sunrise industry with high technical content and production concentration, and the access is relatively difficult. In the future, the market demand will surely develop toward the high-end and intelligent industries. The industry operation will become more and more standardized and the current adjustments will be given. The key opportunities for key companies in the industry to bring about the hard work of internal hard work, all companies should not be heroes in terms of scale and speed, to endogenous growth and innovation and development as the pursuit of an international perspective to meet the future market opportunities and challenges.

Major companies have achieved remarkable results in transformation and upgrading. The International Crane Standards Secretariat was set up in Zoomlion; in 2012 Xugong All-terrain crane technology won the second prize of the National Science and Technology Progress Award, and the key technology and industrialization of the ultra-large crawler crane won the first prize of the mechanical industry scientific and technological progress in 2012...

The internationalization process has made progress. In addition to actively expanding overseas businesses and establishing an overseas marketing service system, the overseas M&A and restructuring of Chinese companies has accelerated.

Promote industrial science layout. Leading companies led their own brands to continue to expedite the exhibition. A group of highly sophisticated enterprises survived the market test, and excess or backward production capacity was eliminated. Foreign-invested enterprises are optimistic about China's economy and deploy construction machinery industry. The progress of the high-end construction equipment industry for construction machinery has also made progress.

Understanding of the current situation

From the domestic perspective, China's national economy is moving from a gradual stabilization to a stable bottom. The 18th CPC National Congress was held, and the industry’s export volume reached a record high. It increased 9.9% year-on-year in September, and the export amount was 86.35 billion US dollars. The manufacturing PMI index returned above the critical point, the PPI stabilized, and the National Development and Reform Commission approved a fixed amount of nearly RMB 1 trillion. Asset investment projects as well as fiscal and monetary policies are all conducive to the development of the construction machinery industry.

From the international perspective, China's construction machinery exports account for a very low proportion of sales revenue, only about 20%, with the proportion of 40-60% of developed countries such as the United States, Europe, Japan and South Korea. Although the international economic situation is not stable, China's construction machinery enterprises have gone through a test of “going out”, but going global and realizing globalization services are inevitable choices for China’s construction machinery industry to become stronger and stronger.

From the perspective of the industry itself, the construction machinery industry will also experience a certain period of adjustment, but it is more likely to enter the stage of low-level stabilization and operation. At present, the state's "pre-adjustment and fine-tuning" policy and the investment projects approved since May have little effect on the construction machinery industry, but will surely show its role in the future. At the same time, the high-growth market overdraft in the pre-digestion period has reached more than a year, and the increase in the number of corporate students has been drastically reduced, and destocking has progressed significantly. The social stock has gradually been digested, and the amount of idle equipment has decreased.

Judging the future trend of the industry

Su Zimeng believes that the whole industry will slowly rise from the low position in the coming months.

From a year-round perspective, the sales revenue of the 20 categories of products will grow moderately year-on-year (about 12% year-on-year increase in the year-earlier forecast of the association), but sub-sectors such as earth-rock machinery, road and compaction machinery, and construction cranes are expected to decline. In the first half of next year, the pressure on the low-level operation of the construction machinery industry will remain large, and the trend of stabilization and recovery will appear throughout the year. It is expected that the annual operating indicators will increase steadily.

In the long run, the country’s economic development is still in an important period of strategic opportunities, and it will still have huge potential for engineering machinery. The annual GDP growth rate may be below 10% in the next few years. After China’s economy has entered a stage of smooth operation from high-speed growth, expanding domestic demand, investment in infrastructure, and technological innovation have become important means of stimulating the economy. Implementation of the “Twelfth Five-Year” development plan for the country, various industries, and regions; accelerating the development of strategic emerging industries; upgrading of the consumption structure and industrial structure; and deepening reforms, including non-public economic development policies and institutional environment, etc. And so on, it will certainly further stimulate the market's vitality. As an important part of the equipment manufacturing industry, the construction machinery industry will surely usher in a new round of rapid growth.

Current industry work

Adhere to steady progress and ensure that the industry grows moderately. To guide the industry to further raise awareness, it is necessary to fully estimate the complexity and severity of the situation, enhance the sense of crisis and awareness of crisis, and more importantly, to see favorable conditions and firm confidence in development. At the same time, strengthen the monitoring and analysis of economic operations and timely put forward appeals and suggestions.

Learn and implement the relevant national policy documents. These policies and measures are powerful guarantees to boost corporate confidence and promote industrial transformation and upgrading. The entire industry must learn and implement well.

Actively undertake the transfer of government functions, fully support the independent innovation of enterprises, strengthen the work of standardization and scientific and technological quality, and take the company's scientific and technological innovation, product quality improvement, organizational structure optimization, and brand value enhancement as priorities, and realize transformation and upgrading as the focus of work.

Actively provide advice and suggestions, and strive to form a joint force with government departments, industry organizations and related companies, take measures to phase out overdue construction machinery products, prohibit the use of second-hand excavator imports and strictly limit the backward production capacity for the safety of construction machinery industry and establish a "resource-saving type "Environmentally friendly" society contributes.

Accelerate the construction of "China Construction Machinery Hydraulic Pressure Parts and System Industrialization and Application Cooperative Work Platform" to lay the foundation for solving key components supporting problems. Strengthen interactions, exchanges, and cooperation between host companies and accessory companies. The construction supports the use of domestic hydraulic components by the host company, including the provision of certain funds for the host company to carry out installation test subsidy. In addition, a certain amount of national funds are invested in the bench test of parts and components; for the parts and components companies that have passed bench tests and installation tests, the government has given a certain amount of development funding subsidies.

Doing a good job of industry self-discipline work, including doing a good job of credit rating evaluation by the Ministry of Commerce and the SASAC authorized associations, assisting relevant departments to do a good job in industry access qualification management, resolutely opposing zero down payment, strictly controlling low down payment and preventing and controlling business risks. For the whole industry to speed up the process of internationalization, expand exports, and strive to achieve globalization services to do related work.

Further promote the vocational training and vocational skills appraisal in the construction machinery industry to ensure the needs of various types of talents in the transformation and upgrading of the industry.

Organize industry forces and prepare to hold the 2013 Beijing BICES Exhibition and open the fourth session of the second member congress.