China excavator industry seek new development in the New Year

China excavator

In the recently held 2013 machinery branch of China construction machinery industry association mining, mining machinery branch secretary-general Li Hongbao said, from a global engineering machinery product sales, a digger accounts for almost forty percent share, while China's excavator sales accounted for 60% of the world's excavator sales.China excavator market has become the engineering machinery enterprises in the future for the industry the commanding heights of the key market.
Industry big and not strong
Li Hongbao said, since the first quarter of 2010, domestic excavator brand's market share continues to rise, in the second quarter of 2010 is beyond the Korean brands, and in 2011 1 quarter more than the Japanese brand, 4 quarter of 2012 when the highest reached as high as 54%, but in 2013 the continuous decline.Specific, 1 ~ 2013 in September, China excavator market, Japanese brand achieve sales of 23552 units, up 2.6% compared with the same period in 2012, the market share is 26.7%;Korean brand in the first nine months of 2013 to achieve sales of 12833 units, compared with the same period in 2012 fell 1.3%, the market share is 14.5%;The European and American brands 1 to achieve sales of 13090 units in September 2013, rose 1.6% from a year, the market share is 14.8%;Homebred brand the first nine months of 2013 to achieve sales of 38888 units, fell 2.9% year on year, the market share of 44.0%.Single from the point of market share, excavator product in our country is still a big advantage.
But at the same time, as can be seen from the deep analysis, the overall level of China's excavator industry relative disadvantage is still in the market, there are still certain gap with foreign brands.Ability is prominent, homebred brand premium compared with foreign large difference, gross margin level is only 50% ~ 60% of Japanese, American, capital turnover of up to 80% of the foreign investment, production efficiency up to 50% of Japanese firms.Agent is also a soft rib of the restricted drivers industry development in our country, foreign brand accumulated over the years to master the most outstanding agents, weak agents become the bottleneck of domestic enterprises development and risk source.At present, our country engineering machinery agents have thousands, but the small scale, basic it is an agent operating multiple brands, only a single brand agents exist are few in number.Current some problem in our country engineering machinery agents main outstanding performance in the quality of employees, affiliate management problems, vicious competition of market, and capital recovery problems, these problems, also exists in the different level of excavator industry agents in China.
Risk dies


Li Hongbao thinks, at present, China's excavator industry the main risk is embodied in the following respects.One is the level of industry itself.In, large production capacity and production release of market risk, price risk is gradually accumulation;Enterprise self-discipline ability is low, zero down payment, extend the payment period, unlimited service commitments, malicious slander competitors such as behavior often occurs.According to the five industry benchmarking enterprises listed company annual reports in 2011 and 2011 and a half years, according to data from the annual report five companies combined accounts receivable at the end of 2011 than in 2010 increased by 94%, many companies accounts receivable growth rate at about 90%, compared with the same period 30% of the sales growth rate, growth in accounts receivable is far more than expected.By 2012, most companies in the industry accounts receivable increased by more than 50%, some companies even more than 100%.Since 2013, the situation has improved, but still should cause enough attention.Downstream customers YuQiLv high, resulting in debt to the default rate;Product inventory, still have large end users to buy new confidence;Demand recovery than expected, rising raw material prices, new products less profitability, and so on.
The second is the influence of the external environment.This is mainly embodied in the coal, steel, real estate and construction machinery, such as ties of excavator industry the impact of the development of the industry.As engineering machinery equipment needs one of "top" of the coal industry, after a series of integration, its production operation mode gradually towards the modernization, automation development, lead to demand for excavators and other construction machinery has fallen dramatically.Again recently, the state council issued the action plan for the control of air pollution, required by 2017, coal accounted for China's energy consumption is reduced to below 65%, which will demand for excavator inhibition effect.
In iron and steel, at present, China's crude steel output to about 1 billion tons, but since 2013, the domestic steel market demand is weak, the steel mills in order to protect the existing market share, are reluctant to cut first, superposition of a series of factors, the domestic steel prices continue downward.Slowly, market demand and relatively abundant supply, mining will lead to domestic iron ore plant is extremely low, thus affect the demand for excavators and other equipment.
In addition, the uncertainty of the relevant national policies, investment and credit as well as the sharp drop in real estate and other infrastructure investment factors such as lower than expected, have posed a risk to the further development of excavator industry.
The solution
Li Hongbao think, existing industries to avoid vicious competition, in the level of excavator industry to obtain a new growth point, should be innovative, combining short-term and long-term goals, making the excavator industry in our country can foster strengths and circumvent weaknesses, to consolidate existing advantages, and achieve better development.
Taken together, the excavator industry should pay attention to guard against risks, establish a good risk assessment and response mechanism, improve the relevant enterprises market impact resistance, mainly through the following several aspects.
First, adjust business strategy, strengthening the management of investment and mergers and acquisitions.All investment and merger and acquisition should be steering technology upgrade, the upgrade of industry upgrading and business models.To control the rate of assets and liabilities of enterprises at the same time, financially to set aside a larger space.This experience in neighbouring Japan has successful cases.The second half of the 1990 s, Japan entered the low speed growth.Slowing economic growth and investment have been slashed and the Japanese domestic market decline in demand.During this period, all domestic engineering machinery enterprise to carry on the management system reform and strengthening, especially to strengthen the financial system and cost management, and strict inventory reserves investment efficiency of construction machinery industry.These, boost Japan's construction machinery to complete industrial upgrading and enhance the global competitiveness.
Second, strengthen the cash management, consolidate the chain, strengthen the management of accounts receivable.
Third, promote enterprise mechanism transformation and management in place, and improve enterprise market impact resistance, a better foundation for the long-term development of enterprises.Li Hongbao think, need through technology, products and business model innovation, to reshape the foundation of enterprise competitiveness, so as to achieve the goal of risk resistance.This includes to develop its own core competitiveness, to promote enterprise independent innovation, under the big determination system of independent research and development, make the enterprise really strong in technology.
Fourth, to actively explore the international market.Foreign mining machinery market demand potential is tremendous, and the domestic excavator industry structural overcapacity is said or done, therefore the export of the additional boost China's excavator sales force.According to the Japanese engineering background and experience of the development of globalization, the yen, trade friction is directly trigger point, and rising costs and foreign broad market demand is the most fundamental driving force.These factors is also China excavator industry for the development of globalization, directly or indirectly.
Fifth, to support and help the development of local parts enterprises, it is the key to the excavator enterprises enhance core competitiveness.It mainly includes the encourage domestic r&d and manufacture of spare parts manufacturers, the host enterprises shall actively cooperate with and copy;Rely on the host make their own strength, independent parts or cooperative development system;Actively strive for international famous parts manufacturer built wholly owned or joint venture factory in China, solution components, cost, delivery, technical support and other key issues;Establish local parts of enterprise, and actively strive for national policy support for spare parts industry development and so on.