Engineering machinery industry competition model urgently needed transformation

At the Fourth Meeting of the Fourth Session of the Fourth Session of China Construction Machinery Industry Association and the Tenth China Construction Machinery Development Forum held recently, Jun Jun, President of China Construction Machinery Industry Association stated that equipment manufacturing industry is to provide for national economic development and national defense construction. The strategic industries of technology and equipment are the pillar industries of China's national economy. As an important part of the equipment manufacturing industry, the construction machinery industry achieved remarkable achievements in the beginning of the “Twelfth Five-Year Plan”. He estimated that the construction machinery industry will maintain steady growth throughout 2011 and its operating income will increase by approximately 17% to RMB 500 billion on the basis of RMB 446.7 billion in 2010.

Investment in science and technology continues to increase breakthroughs in independent innovation According to Minjun, in 2011, the investment in science and technology by enterprises in the construction machinery industry continued to increase, and the strength of scientific research continued to increase. Such as the Tianjin Institute of Construction Machinery to increase investment, efforts to adjust the strategic direction, determined to serve the industry, and actively participate in the Ministry of Industry and the Ministry of Industry, "high-pressure hydraulic components and systems engineering machinery and application of collaborative work platform" preparations; Jiangsu Xuzhou Construction Machinery Research Institute Since its founding, under the key support of the Department of Science and Technology of Jiangsu Province and the Ministry of Finance and the active efforts of the XCMG Group, it has been making efforts to build a world-class engineering machinery technology R&D institution; Zoomlion’s National Concrete Machinery Engineering Technology Research Center was established last year. Various scientific and technological innovations have made new progress; Liugong shares have been approved by the Ministry of Science and Technology this year to become the only national engineering and technology research center for earth-moving machinery industry. This is a demonstration of China's earth-moving machinery industry's scientific research and development, technological innovation and industrialization. The important base represents the first-class level of technology development and transformation of achievements in the earth-moving machinery industry in China. The Komatsu (China) Product Technology Development Center, which Komatsu invested in to establish the world's first-class construction machinery product technology development center, was opened in Changzhou.

In 2011, the National Machinery Industry Science and Technology Progress Award received a total of 22 engineering machinery products and technology awards. The strengthening of scientific research forces the industry to keep pace with the pace of technological innovation and technological advancement and the rapid advancement of the market. In 2011, high-end products emerged in an endless stream, and major technological equipment made new breakthroughs. Such as: 2000 tons, 3000 tons of crawler cranes, 800 tons, 1200 tons of all-terrain cranes, 12 tons of loaders, 46 tons of internal combustion counterbalanced forklifts, 520 horsepower bulldozers, 260 tons of electric wheel dump trucks, etc. successively in Xugong, The joint ventures of China United, Sany, Liugong, Anhui Heli, Shantui, and Northern Stocks reflect the improvement of the independent innovation capability of China's construction machinery companies, which already has the ability to develop high-end and large-scale products.

Energy-saving and emission-cutting have achieved initial results. Product quality has improved significantly. It is understood that the Ministry of Industry and Information Technology last year identified eight projects including Xugong, Zhonglian, Sanyi, Liugong, Caterpillar (Shanghai), Tiangongyuan, Wuhan Maxima, Hunan Zhongda. After the first batch of remanufacturing pilot units, mechanical enterprises and industrial agglomeration areas have become the consensus of many companies. Some enterprises have increased their input this year and are actively striving for new breakthroughs.

At the same time, key technology and equipment companies including Xugong, Liugong, Shantui, and Sanyi have actively promoted independent innovation and pursued lean management in accordance with relevant commitments of the “Beijing Declaration” jointly released last year. Products promote energy-saving emission reduction in the production process, promote circular economy and green manufacturing, and win the respect of users and markets, gradually shoulder the historical responsibility of revitalizing the equipment manufacturing industry and strengthening the Chinese industry.

At the same time, various energy-saving products including hybrid power were introduced to the market, such as hybrid power loaders and hybrid excavators, which made people see the hope of construction machinery products in China.

In 2011, a total of 18 types of large-scale construction machinery in the industry were included in the tax exemption for major national technological equipment imported parts; 18 enterprises continue to be included in procurement targets for military supplies. Xugong, Sany, Liugong, Shantui, Longgong, Hitachi, and Yuchai 7 leading earth-moving machinery industry companies have been certified by China Earthmoving Machinery “CQC”. The domestic equipment represented by its own brand excavators has been fully recognized and affirmed by the users in market adjustment. A group of high-quality products have also been launched in succession: the two kiloton-class all-terrain cranes independently developed by XCMG passed the product appraisal organized by the China Machinery Industry Federation, and Sany Heavy Industry’s 1,000-ton all-terrain crane successfully completed the lifting experiment. Marking the country following Germany and the United States, China has become the third country to develop and produce a kiloton-class all-terrain crane. XCMG's walking excavators and asphalt sprinklers, Zoomlion and Sany Heavy Industry have developed and manufactured 3000-ton crawler cranes and concrete pump trucks over 80 meters in size, and have obtained a number of patents. The products are intelligent and core technologies. There are new breakthroughs in appearance and appearance. Liugong launched the CLG855N energy-saving and environmental protection loader, and XGMA introduced 2011 new improved products. The Shantui hydraulic bulldozer project passed the acceptance of the Ministry of Science and Technology, and Tianjin Shanhe's first paver and milling machine was successfully rolled off. Jingcheng Heavy Industry 25 The tons and 55 tons of truck cranes and 160 tons of all-terrain cranes off the assembly line show that the construction machinery industry has made gratifying achievements in energy saving and emission reduction, product structure optimization and product quality improvement. The speedy growth lays down the hidden pit competition pattern to be adjusted urgently Since 2010, the sales of construction machinery products have continued to grow rapidly, which has fully satisfied the market demand for construction machinery. Under the driving force of increasing the market share and expanding the scale of production and sales, the relevant construction machinery companies are generally driven. Have higher growth expectations. However, when the economy enters the stage of appropriate adjustment and rational regression, the market demand for construction machinery products and the expected sales target of the company are intensified, and the market competition becomes more fierce.

According to Yan Jun, since the beginning of this year, various companies have adopted a variety of promotional measures, resulting in more fierce market competition, and various over-marketing measures have caused the decline in corporate economic efficiency and increase in accounts receivable. Especially in the industry, the growth of production capacity in recent years is too fast, and the escalating sales methods or over-marketing have overdrawn some market demands, resulting in non-standard competition in the industry, and even unfair business practices. The sales of prizes, zero down payment, low down payment, excessively large proportion of financial leasing, and low threshold of leasing companies and inadequate management of used equipment have disturbed the market order and greatly increased the business risks of the company.

Jun Jun believes that due to the gradual withdrawal of some stimulus economic policies and the effects of a series of macroeconomic control policies such as the country’s proactive fiscal policy and prudent monetary policy, the turning point of the country’s macroeconomic policy remains to be seen, and the related construction machinery industry in China The slowdown in the growth of production and sales of products also requires a relatively long period of rational regression.

Jun Jun pointed out that the world's door opened wider and wider for global construction machinery companies, and Chinese companies are entering an unprecedented period of strategic opportunities. Especially since the international financial crisis, the global construction machinery industry has entered an important stage of development in the face of new adjustments, new changes, and new breakthroughs. Market demand for construction machinery will continue to increase in Brazil, Russia, India, South Africa and other BRICS countries. There are still huge realities and potential market demands in developing countries such as South America, the Commonwealth of Independent States, Southeast Asia, the Middle East, and Africa. Construction machinery companies in China will face new opportunities for development in the international market and will also face severe market challenges.

Min Jun emphasized that Chinese enterprises must face up to the competition with the world's forefront of construction machinery companies, and must focus on reform and adjustment, focusing on transforming the "scale-as-competing" competition model into a "value-orientated" competitiveness system and increasing quality. And user value elements are deeply implanted in technology, innovation, branding, model transformation, and industrial chain growth.