The development bottleneck of construction machinery industry urgently needs to be broken through

According to the new statistics of China Construction Machinery Industry Association, the construction machinery industry last year, on the basis of the decline in market sales in previous years, encountered more severe challenges in product sales, enterprise benefits, capital turnover and other difficulties than in previous years. According to the statistical summary of the association, after deducting incomparable factors, repeated submitted data and non-construction machinery industry operating income, the whole industry achieved operating income of 457 billion yuan last year, down 11.7% compared with 2014.

"At present, although the industry statistics show positive changes, but the downward pressure of the construction machinery industry is still not removed, the development of the industry is still facing many challenges". Su Zimeng, executive vice president and secretary general of China Construction Machinery Association, pointed out that to break out of the dilemma, international demand management needs to be combined with supply-side structural reform, accelerate transformation and upgrading, and consolidate the foundation of development.

Downward pressure is unabated

According to the industry statistics of the Secretariat of the Mining Machinery Branch of China Construction Machinery Industry Association, in the first half of 2016, the 27 main engine manufacturers included in the statistics sold a total of 33,669 sets of mining machinery products in the domestic market (excluding Hong Kong and Macao), down 4.8% compared with the same period last year. The first half of this year excavator industry operation is basically stable. According to the prediction model of mining machinery branch, combining the current economic conditions and market research and interviews, it is predicted that the domestic sales of mining machinery products in the whole year will be 51,000 units (excluding exports), down 2.3% compared with last year.

"This year, the overall development situation of the construction machinery industry is still grim". Su Zimeng said, at present, the world economy is in the midst of the depth adjustment period, the world economic recovery still tortuous, restricting China's economic stabilisation in unfavorable factors still exist, insufficient effective demand of engineering machinery industry, behind the excess capacity, and the status of the enterprise profits still not fundamental change, the depth of the industry adjustment will continue.

He also admitted that the downward pressure on the industry has not yet been lifted, and the positive changes in the first quarter data are mainly based on the product upgrade benefits brought by the upgrade of emission standards. However, many uncertain factors have led to a continuous slowdown in the demand of the international construction machinery market. Some enterprises, especially large and medium-sized enterprises, have not changed their benefit decline, and the industrial structural adjustment and supply-side structural reform are far from reaching expectations.

After the stimulus of 4 trillion yuan, the mining machinery industry is facing a severe test of cold demand, intensifying competition and rising costs. Data show that the sales volume of China's excavator market in 2015 decreased by 70.9 percent compared with the record high in 2011. The construction machinery industry is closely related to infrastructure and real estate, but since the end of last year, the hot first - and second-tier real estate transactions and the continued increase in infrastructure investment, has lost its pull on the machinery giants. If from a longer period to observe the production and sales of the construction machinery industry, it can be clearly seen: after the strong growth after strong stimulus, the past few years the whole industry has been numb to the stimulus.

Today, China's excavator industry is in a period of downturn and adjustment, but with the implementation of the "One Belt and One Road" policy, the direction of government infrastructure and public finance, as well as export activities, China's economy may have begun to build bottom.

There are still opportunities

From the perspective of the domestic market, the three-year Action Plan of Major Transportation Infrastructure Projects makes it clear that the construction of major national transportation infrastructure projects will be prioritized from 2016 to 2018, and the investment opportunities of railway, highway, airport, urban rail transit and other projects with a total investment of about 4.7 trillion yuan continue to emerge.

All the way from the international market, with "neighbourhood" initiative continues to advance, based on 65 countries along the silk road the reality of the existing infrastructure is weak, which is based on economic corridor, in transportation infrastructure construction as the breakthrough, infrastructure investment Banks in Asia and the silk road fund fund, under the support of related countries will start a infrastructure construction along the boom. The Asian Development Bank estimates that the region's annual infrastructure investment needs will reach us $730 billion by 2020. The implementation of the above major strategies and projects will certainly drive the development of construction machinery industry which is closely related to infrastructure construction.

In terms of domestic investment, according to statistics, from January to June this year, China's infrastructure investment (excluding electricity, heat, gas and water production and supply) reached 4,908.5 billion yuan, up 20.9% year on year, and the growth rate was 0.9 percentage points faster than that of January to May. The investment growth rate continued to grow. In the first half of the year, intensive infrastructure investment planning, investment positive frequency. For construction machinery, while waiting for good news to come, construction machinery enterprises are actively transforming, adjusting mode and promoting upgrading, in order to obtain development and living space in the following infrastructure boom.

Railway, "much starker choices-and graver consequences-in" period will accelerate the Midwest trunk railway lines, high-speed railway and inter-city railway, peripheral connectivity in railway section of major projects, such as five years new railways, 30000 km, including 11000 km of high speed railway, is expected to "much starker choices-and graver consequences-in" at the end of the national railway business total mileage of 150000 kilometers.

Highway, "much starker choices-and graver consequences-in" period will focus on the implementation of the highway network unimpeded, the provincial trunk upgraded engineering, rural highway unblocked safety engineering, 5 years of new road 430000 kilometers, new rebuilt highway mileage of 30000 kilometers, is expected to "much starker choices-and graver consequences-in" at the end of the national total of more than 5 million kilometers, The total length of expressways reached 150,000 kilometers.

In terms of water transport, the 13th Five-Year Plan period will accelerate the building of a maritime power, build the Golden waterway of the Yangtze River, and promote the transformation and upgrading of ports. 500 deepwater berths will be added to coastal ports in the next five years, and the number is expected to reach 2,610 by 2020. Over the past five years, 4,500 kilometers of waterway have been added or improved, and the planned 19,000 kilometers of high-grade inland waterway have been basically completed.

In terms of civil aviation, the 13th Five-Year Plan period will further improve the airport layout system, expand the coverage, optimize the network structure, and build a national comprehensive airport system. More than 50 new airports have been added in the past five years, and the total number of civil transport airports in China is expected to exceed 260 by 2020. In the future, the market of domestic construction machinery industry is still full of opportunities.

In the face of market changes, leading enterprises in various industries, which are traditionally good at manufacturing capabilities, are actively introducing intelligent concepts to open up new markets. "Intelligent manufacturing" is becoming a new development direction for a number of Chinese manufacturing enterprises. It is understood that by 2020, the level of intelligence in key areas of manufacturing industry will be significantly improved, the operating cost of pilot demonstration projects will be reduced by 30%, the production cycle of products will be reduced by 30%, and the rate of substandard products will be reduced by 30%. By 2025, the key areas of manufacturing industry will be fully intelligent, the operating cost of pilot demonstration projects will be reduced by 50%, and the production cycle of products will be reduced by 50%. The rate of defective products was reduced by 50%.

The aftermarket should get enough attention

With the huge growth of domestic sales and ownership of construction machinery, it is imperative to find a sustainable production and consumption mode to promote energy conservation and emission reduction in the construction machinery industry. Under the influence of "One Belt and One Road" and other policies, the export volume of China's construction machinery products is growing rapidly, and foreign merchants put forward clear remanufacturing requirements for the construction machinery products sold in China. Multiple demands force construction machinery remanufacturing to become a key market opportunity. Experts have proposed "the construction machinery industry has entered into the era of service competition, service quality is the survival of enterprises, overseas such as Germany, Belgium, Japan and the United States of some famous engineering machinery enterprises all have a strong and complete industry chain, in marketing, service and after-sale link building good profit model, form the advantage of sustainable development, It's worth learning."

But as far as the domestic situation is concerned, the aftermarket of construction machinery has not been paid enough attention by enterprises. Therefore, in the face of fierce foreign market competition and limited domestic market capacity, it is a good idea to turn to the after-sales service market.

This requires many brands in the domestic post-market to be self-disciplined under the leadership of the industry association, strengthen management, change the spontaneous and loose state of the market in the past, and realize the standardization and stabilization of the network construction. At the same time, we should improve the after-sales service system, improve the technical level of after-sales service personnel, speed up the response timeliness, and enhance competitiveness.

With the hot auction of second cell phones in various places, the second cell phone market gradually began to develop and benefit a lot. Regulating the market order of the second mobile phone will provide good raw material support to the downstream remanufacturing industry, solve the embarrassing situation of the construction machinery remanufacturing industry, and further promote the green development of construction machinery.

In addition, China's construction machinery enterprises have also increased technological innovation, pay attention to market demand, establish the concept of energy conservation and environmental protection, promote green manufacturing, achieve transformation and upgrading, produce new products in line with the market demand and development trend in the new era, and strive to occupy the commanding heights of the market in technology, quality and function.