China's Construction Machinery Industry: After the Spring is Winter - Postscript of "2012 Construction Machinery Investment and Development Summit Forum"

The famous company in the industry, Liugong achieved a total profit of 1.512 billion yuan last year, a decrease of 16.56% over the previous year; Xiamen workers achieved an operating profit of 648 million yuan, a year-on-year decrease of 7.89% ... ... coolly spread from the beginning of last year to the entire construction machinery industry. “But we cannot stay in the winter forever and spring is coming.” Zheng Jin, vice president of Liugong Group, is full of hope for the future. Yesterday, at the 2012 “Construction Machinery Industry Investment and Development Summit Forum” in Jiangyin Lingang Construction Machinery Industrial Park in Jiangsu Province, Zheng Jin’s views were unanimously endorsed by the participating guests: China’s construction machinery industry is expected to usher in new A period of accelerated development.

In fact, the warming signal of the construction machinery industry has been communicated before the policy. From May 21, Premier Wen Jiabao stressed that “steady growth” is placed in a more important position. From June 8th, the central bank cut the benchmark RMB deposit and loan interest rate of financial institutions. The intermittent good news first loosened the policy for the construction machinery industry. Relevant experts said that the industry has only had a question of time to usher in a full recovery of the market.

Su Zimeng, secretary general of the China Construction Machinery Industry Association, said that since last year, the entire construction machinery industry has been in a rational adjustment period, and it has been affected by the combination of international financial fluctuations, domestic monetary tightening, and investment slowdown. Therefore, the industry is facing ups and downs in market demand, some companies are difficult to adapt to; the shortage of resources is increasing, some areas are constrained; enterprises lack investment in R & D, transformation and upgrading is facing a test; foreign brands have a strong layout, independent companies are under pressure and many other issues. However, new economic growth points are often born during economic transition. President of China Construction Machinery Business Network Yu Wenqing told reporters that according to the development experience of construction machinery in Europe, America and Japan, after the urbanization rate reached over 70%, the demand for equipment has slowed down significantly and there will be an inflection point in demand. In 2011, the rate of urbanization in China was just over 50%, and it would take 20-30 years to reach the 70% level. Therefore, in the next 20-30 years, the overall demand for the Chinese construction machinery market will increase, and there will be no long-term shrinking demand. . In this regard, Su Zimeng also holds an optimistic view. He predicted that the domestic construction machinery industry will continue to grow steadily this year and is expected to achieve a 12% increase, and exports will also be better than the previous two years.

Su Zimeng's "mood" comes from the strength of the manufacturers. In recent years, the strength of Chinese manufacturers has greatly increased, and the degree of emphasis on overseas markets has become higher and higher, and the level of export technology and share have increased significantly. Liugong Group is one of the typical representatives. In 2010, Liugong achieved sales revenue of US$250 million; in 2011, it exported more than 8,400 units and its sales revenue increased by 61% over the previous year; in the first four months of this year, Liugong exported a total of 3,063 units, a year-on-year increase of over 40. %. Currently, Liugong has established 10 overseas marketing subsidiaries in Europe, North America, Asia Pacific, and the Middle East, and more than 380 Liugong dealerships across 6 continents and covering 115 countries. The proportion of overseas sales revenue has reached a total More than 15% of sales.

The "big brothers" of the domestic construction machinery industry have also "goed out." At the beginning of this year, Weichai Group acquired the global luxury yacht giant Italy Ferretti Group for 374 million euros. Sany Heavy Industry spent 324 million euros to acquire its largest competitor, German concrete pump manufacturer Putzmeister. Some agencies predict that this year the Chinese companies will be reactivated by the urge to “buy the bottom” overseas.