According to statistics from China Construction Machinery Industry Association, in 2011, the sales of excavators in China will reach more than 160,000 units, an increase of about 60% year-on-year. The market demand for excavators is closely related to the country's fixed asset investment. It is undeniable that with the acceleration of the pace of urbanization in China and the acceleration of the development process in the middle and western regions, the excavator industry will still have better market potential during the “Twelfth Five-Year Plan†period, but risks will often go hand in hand with the opportunities.
Based on data predicted by the China Construction Machinery Industry Association that the industry's sales in 2015 could reach 9,000 billion yuan, a simple measure will be taken. It is expected that in 2015, China will not consider factors such as inflation, price increase, and product upgrades. Excavator sales will reach about 360,000 units, which in itself is a questionable number. In addition, according to industry estimates, by 2014, China's domestic excavator production capacity will reach 425,000 units, taking into account the imported products and other non-negligible market capacity, the domestic excavator market overcapacity problems will be prominent.
The "425,000 units" of data is not just guesswork. "Excessive overcapacity for excavators" is not annoying. Nowadays, the tightness of the excavator market is attracting the continued enthusiasm of most companies for this project. This is evident from the plan for investment expansion of excavator projects in the next few years.
Among the local brands, Sany plans to produce and sell 25,000 excavators in 2011; Xugong’s excavator sales target in 2011 will reach 10,000; Liugong’s goal is to reach 30,000 units by 2015 According to the company's development strategy plan, XGMA plans to implement an annual investment of 12,000 excavator investment projects; Guangxi Yuchai and Sichuan Bangli will invest in large and medium-sized excavators in Quzhou, with a total scale of RMB 2 billion. An annual production capacity of 5,000 large and medium-sized excavators will be formed. In the second and third-tier brands, the investment of each brand is also important. Rongsheng Heavy Industry invested RMB 3.4 billion in Anhui to build a project with a production capacity of 30,000 excavators and 400 rotary drilling rigs; Wushiye Group’s affiliate Pushi Heavy Machinery has also invested more than RMB 400 million to produce medium and small excavators. After the project has reached full production capacity, the annual production capacity will reach 10,000 units...
As a catch-up economy with a heavily planned economic footprint, the Chinese economy has a lack of regularity in the fluctuations of its entire production cycle. The rapid shift from shortage of production capacity to overcapacity often leads manufacturers to lose track of their clues. At present, China’s macro-economy is facing many problems. The financial crisis has prompted the Chinese government to implement easing policies, which have deviated from the divergence between economic prosperity and structural contradictions. It is not ruled out that inflation will lead to a tight brake on tightening policies. may.
At the beginning of the 21st century, the Chinese loader industry has staged a tragic scene of high market growth and continuous decline in the industry's average profit margin. In order to avoid the recurrence of history, all enterprises in the construction machinery industry in China must be alert to the expansion of excavator technological transformation. At the same time, we must seriously consider the following key factors: improving core technological capabilities and product stability, changing the situation in which critical accessories are heavily dependent on imports; and accelerating the internationalization process through capital output, product output, and the introduction of technology and talent; Modularization, standardization and lean production management to improve corporate efficiency; vigorously implement post-market operations such as used equipment, leasing, accessory sales, VIP value-added services, etc.; strictly control credit risk, control the proportion of payment methods such as installment and mortgage in sales, etc. .
In the market competition, undercurrents are surging, and waves are ebbing. For China's excavator manufacturers, only when they are truly cautious, fully study the market, and enhance their core competitiveness, will they smile and go to the other side when the tide recedes.
Based on data predicted by the China Construction Machinery Industry Association that the industry's sales in 2015 could reach 9,000 billion yuan, a simple measure will be taken. It is expected that in 2015, China will not consider factors such as inflation, price increase, and product upgrades. Excavator sales will reach about 360,000 units, which in itself is a questionable number. In addition, according to industry estimates, by 2014, China's domestic excavator production capacity will reach 425,000 units, taking into account the imported products and other non-negligible market capacity, the domestic excavator market overcapacity problems will be prominent.
The "425,000 units" of data is not just guesswork. "Excessive overcapacity for excavators" is not annoying. Nowadays, the tightness of the excavator market is attracting the continued enthusiasm of most companies for this project. This is evident from the plan for investment expansion of excavator projects in the next few years.
Among the local brands, Sany plans to produce and sell 25,000 excavators in 2011; Xugong’s excavator sales target in 2011 will reach 10,000; Liugong’s goal is to reach 30,000 units by 2015 According to the company's development strategy plan, XGMA plans to implement an annual investment of 12,000 excavator investment projects; Guangxi Yuchai and Sichuan Bangli will invest in large and medium-sized excavators in Quzhou, with a total scale of RMB 2 billion. An annual production capacity of 5,000 large and medium-sized excavators will be formed. In the second and third-tier brands, the investment of each brand is also important. Rongsheng Heavy Industry invested RMB 3.4 billion in Anhui to build a project with a production capacity of 30,000 excavators and 400 rotary drilling rigs; Wushiye Group’s affiliate Pushi Heavy Machinery has also invested more than RMB 400 million to produce medium and small excavators. After the project has reached full production capacity, the annual production capacity will reach 10,000 units...
As a catch-up economy with a heavily planned economic footprint, the Chinese economy has a lack of regularity in the fluctuations of its entire production cycle. The rapid shift from shortage of production capacity to overcapacity often leads manufacturers to lose track of their clues. At present, China’s macro-economy is facing many problems. The financial crisis has prompted the Chinese government to implement easing policies, which have deviated from the divergence between economic prosperity and structural contradictions. It is not ruled out that inflation will lead to a tight brake on tightening policies. may.
At the beginning of the 21st century, the Chinese loader industry has staged a tragic scene of high market growth and continuous decline in the industry's average profit margin. In order to avoid the recurrence of history, all enterprises in the construction machinery industry in China must be alert to the expansion of excavator technological transformation. At the same time, we must seriously consider the following key factors: improving core technological capabilities and product stability, changing the situation in which critical accessories are heavily dependent on imports; and accelerating the internationalization process through capital output, product output, and the introduction of technology and talent; Modularization, standardization and lean production management to improve corporate efficiency; vigorously implement post-market operations such as used equipment, leasing, accessory sales, VIP value-added services, etc.; strictly control credit risk, control the proportion of payment methods such as installment and mortgage in sales, etc. .
In the market competition, undercurrents are surging, and waves are ebbing. For China's excavator manufacturers, only when they are truly cautious, fully study the market, and enhance their core competitiveness, will they smile and go to the other side when the tide recedes.
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