2013 Construction Machinery or Moderate Growth

In the past year, the negative factors such as inventory pressure, the sharp increase in accounts receivable, and the sluggish economic environment have been accompanied by the construction machinery industry in China. For more than a year, although the sound of the industry’s recovery has continued, it has not been able to make it. In the industry, we see innovation and progress. We can also see the confusion and embarrassment. For the future vision, entrepreneurs are full of confidence, but they can also feel their anxiety and worry about the current difficult situation.

Low-level operation of construction machinery industry in 2012

The decrease in market demand is the biggest dilemma faced by the industry. Since April 2011, the entire construction machinery industry has entered a period of low growth. So far it has been 20 months. Such a long period of market downturn has made many companies feel pressured. Take an excavator company as an example. As of the end of November, the market sales fell by 35.84% compared with the same period in 2011. Although half of this was due to digesting inventory, the decline was still significant. Trade protectionism has further intensified. For example, in Brazil, after adjusting for import tariffs on industrial products in September, the competitiveness of China's construction machinery products has dropped drastically, and there has even been a case of selling one at a loss.

According to the data released by the China Federation of Machinery Industry on December 24, as of the end of November, the national construction machinery industry achieved an industrial output value of 545.312 billion yuan, a cumulative year-on-year increase of negative 0.43%, and a sales value of 536.683 billion yuan, a cumulative increase of 1.17 years. %. Production and sales rate is 98.42%.

This year, the construction machinery industry is facing a very serious situation. According to November's data, whether it is the total output value of industrial output or the value of export delivery, the absolute amount and the year-on-year growth rate are even worse than last year, but the chain ratio has increased significantly, indicating that market demand is improving. If you look at the production and sales rate simply, 101.1% is a very encouraging figure. It means that the company's inventory is declining and production capacity is starting to recover. In fact, because it is the rolling of inventory, although some space has been released, the pressure on enterprises has declined, but the pressure of inventory still exists.

In November 2012, China's construction machinery industry completed a total industrial output value of 42.963 billion yuan, a year-on-year increase of negative 15.82%, a month-on-month increase of 1.66%; realized sales value of 43.45 billion yuan, a year-on-year growth of negative 15.82%, an increase of 3.52%. October production and sales The rate was 101.1%, an increase of 1.79% compared with the previous month; the export delivery value was 2.768 billion yuan, a year-on-year increase of minus 5.32%, and the growth rate was 22.90%.

In November, there was a slight difference between the three sub-sectors of the construction machinery industry and their growth rates. Among them, the growth rate of the construction machinery for special purpose machinery production reached a maximum of 22.05% year-on-year, and the lowest growth rate of construction machinery manufacturing was negative 23.42%. The increase in industrial sales value was 26.22% more than the production of special-purpose machinery for building materials production. The lowest growth rate was negative 19.18%.

The output of major products varies

In November 2012, most of the five major products of the construction machinery industry showed a slight year-on-year growth. Among them, the loader experienced a negative growth of 26.70%, while the growth rate of the compaction machinery was significantly higher than that of other industries and reached 28.45%.

From January to November, most of the cumulative product output of the construction machinery industry increased. Among them, the excavator had a negative growth of 34.80% year-on-year, while the concrete machinery growth rate reached 12.19%.

Corporate cash flow tested

Under the background of declining economic growth and drastic downsizing of downstream demand, many companies have reduced the pressure on their inventories, and the irrational low down payment and zero down payment that have occurred in the construction machinery industry have caused adverse consequences during the market downturn. Many of the company’s previous sales were reflected on the company’s balance sheet in the form of accounts receivable and did not form true cash flows. And it is difficult to judge how much these accounts receivable can be recovered.

At the same time, due to the downturn in the market and the irrational behavior of enterprises in the earlier period, some banks listed the construction machinery industry as an investment in high-risk industries, making it difficult for companies to make loans. This has also led to difficulties in the source of funds for enterprises and once again aggravated the pressure on corporate cash flow.

It is understood that a considerable part of the company's books, cash flow once appeared negative. This situation is terrible. Even if a company is big, once the cash flow is cut off and not replenished, it may cause the company to "suddenly die." How to use every penny and make full use of it to fully optimize the company's existing resources The test will be a test of the capabilities of corporate executives.

Stepping out faster
As the Chinese economy continues to increase its strategic position in the world, more and more Chinese companies are continuing to occupy the high ground of internationalization strategies. The more obvious and stronger this trend is, the more Chinese companies have received attention from the world. In 2012, China’s construction machinery companies “collectively went to sea” and became a landmark event on the road to internationalization of Chinese companies.

Guangxi Liugong announced at the beginning of this year that it had spent 335 million yuan to acquire the civil engineering machinery business of Polish HSW. In May of this year, the first loader at the Liugong Polish Base went offline, taking an important step in the local production of Chinese construction machinery products in Europe. Liu Gong, the president of Liugong, said that the main task of the acquisition was to integrate, including R&D integration, business integration, etc. Now the achievements can be said to exceed expectations. For example, on complex labor issues, by working with local trade unions, the production efficiency of Polish bases has increased by 40%.