The Real Power of the Rise of Construction Machinery Enterprises

“The construction machinery industry has ushered in a cold spell early.” A person in the industry of a ball mill mill describes the market performance of China's construction machinery industry since the second half of this year. Although September has been the sales season for the machinery industry, there has been a phenomenon of “poor season”. Except for the construction of railways, the growth effects of construction of affordable housing and construction of water conservancy projects in the construction industry on sales of the construction machinery industry have not been reflected. Due to factors such as real estate regulation, deceleration of high-speed rail investment, and tightening of value policies, the sales volume of the construction machinery industry after the second quarter fell sharply. Some companies have already taken measures to reduce production.

The excavator industry was once favored by social capital. Based on the judgment of the Chinese excavator market in the future, major industry companies have continuously expanded their production capacity. In just two years, China’s excavator production capacity has expanded dramatically, and this has also accumulated certain risks. The products favored by social capital must be high-risk, because when these investors find out that they have surplus products, they will quickly withdraw, and then the prices of these products will often fall badly. Take the excavator in the construction machinery industry as an example. In the past 10 years, the excavator market has increased at an average rate of 30%. Currently, the excavator market has become one of the largest markets in the world and is the manufacturing center of excavator industry in the world. However, it is worth noting that there are many foreign excavator brands entering the country. There are about 50 brands at home and abroad, including the top 20 domestic construction machinery, who are excavator products.

“The construction machinery industry must have a hard work spirit and should not have the illusion of psychology. The aggressive marketing model will have a devastating impact on the entire industry.” Zeng Guang'an reminded that the radical promotion model cannot be a competition in the corporate market. The long-term selling point, to enhance the company's own R & D capabilities is the real power of the rise of the company. He suggested that excavator makers should return to rationality and take responsibility for improving product quality and independent research and development.

At the same time as domestic enterprises expand their production capacity, they also made foreign excavator accessories dealers make a fortune from China University. Judging from the world's major excavator companies, most of them have their own excavator manufacturers. In order to compete for market share, some foreign key component suppliers often regulate the output of domestic excavator companies by manipulating the output of core components and form a worldwide seller market. For example, in order to control the market, Rexroth's delivery period to Chinese companies is 88 weeks, which means that Chinese companies now have to decide on the amount of hydraulic products purchased in 2013. In the case of a huge change in the construction machinery market, such a hegemony clause means that Chinese companies must take great market risks themselves. In response to this problem, Zeng Guangan stated that in order to reverse this situation, the construction machinery industry should give full play to the role of science and technology in guiding and supporting, and strive to break through the core technology and key technologies of the industry, develop high-end equipment manufacturing, and comprehensively enhance the company’s core competitiveness and complete it as soon as possible. The transition from a manufacturing country to a manufacturing powerhouse.