2013 development trend of construction machinery market

After experiencing the difficult years of 2012, the construction machinery market finally showed a good light at the end of last year, so the industry pinned its hope on 2013. However, in the first quarter, influenced by the “lagging” of the Spring Festival and the “two sessions” in March, the recovery of downstream demand was relatively weak, and sales of the construction machinery industry remained relatively low. Among them, because large-scale infrastructure construction and coal mine demand have not been restored, sales of truck cranes, excavators, and loaders fell 32%, 25.7%, and 19% year-on-year in the first quarter... Does that really make the industry pick up in 2013?

Excavator is difficult to achieve positive growth

March and April belong to the season of excavator market, and the sales volume often accounts for 30% to 40% of the whole year. Therefore, the sales situation in March and April of this year is an important basis for judging the market outlook in 2013. The year before the market is expected to have a strong economic recovery, but after years of market sales performance is not satisfactory, lower than the previous expectations of manufacturers, distributors, industry insiders expect that the whole year is difficult to achieve positive growth in the excavator industry.

Areas with low excavator holdings such as Sichuan, Northeast China, Guizhou, and Shanxi have good sales, but sales in regions with high holdings are sluggish. In the eastern region, only local sales were better, sales in Other regions were flat, and overall performance was poor. Experts said that the current 2013 investment expectations are not yet clear, the market has experienced a certain degree of investment rationality after experiencing turbulent growth in 2010, and it is expected that the excavator market conditions will need to wait until the new government policy is issued in the second half of the year. Only after the turn.

At present, the overall operating rate of excavators has increased, but due to the expected future investment in fixed assets, customers are more inclined to lease equipment for construction, more cautious buying equipment, product sales improvement is not obvious.

It is also understood that the current market for excavator models gradually shifts from heavy excavators to small excavators. Li Hongbao, secretary-general of the China Excavator Association, said that the cause of the unbalanced cold and heat in recent years was the general trend. In recent years, with the accelerating process of urbanization in rural areas, labor costs have become higher and higher, and the problem of unit labor difficulties has become increasingly prominent. A “small dig” can be equivalent to 6 labors, and the cost performance is relatively high. This makes more and more construction companies and individuals choose to purchase “small digging”. Second, the overall industry is more rational. The performance of corporate goods is less, and users are more rational in buying. “Small digging” has been welcomed by users because it is relatively low in price, and it is easier for users to repay loans. It is also easier to increase their profitability.

Loader Small Business Faces Death and Death Test
Since 2011, the domestic loader market has basically stabilized and the market concentration is relatively high. Leading enterprises represented by Liugong, Longgong and Xiagong account for more than 60% of the market share.

At present, there are too many domestic loader manufacturers, and except for a few companies that have economies of scale, the vast majority of companies have annual production below 1,000 units, and some have annual production capacity of 200 to 300 units. While in the overall development trend of the loader industry in China that only expands output and aims to improve profitability and profitability, the survival space of many small loader companies is shrinking. Nearly a hundred small-scale production companies are now faced with mergers, conversions, or closures. The situation, which includes companies with production capacity below 2,000 units, has been greatly challenged. Experts said that the integration of enterprises with the main direction of resource reorganization is inevitable.

The main components of the loader engine, transmission, and drive axles are relatively mature and easy to procure. At the same time, the loader product technology is almost completely open, and there are few intellectual property rights barriers such as patents. For various reasons, the entry barrier for loader production is low. The difficulty of making small and medium investors involved in the production of loaders is greatly reduced. Most suppliers of parts and components have fierce competition, suppliers compete with each other, suppliers have poor bargaining power, and some key components such as electronically controlled shift transmissions and wet brake drive axles with limited slip differentials. Other components need to be imported directly, and their bargaining power is relatively high.

Experts said that from the standpoint of competition, foreign companies will further increase their presence in the loader industry in China. Since 2005, foreign companies have formed mergers and acquisitions, and wholly-owned or controlled companies have formed Caterpillar, Volvo, and Kobelco, as well as aggressive companies such as Doosan, Hyundai, and Komatsu of Japan. Foreign loader camp. At present, the market share of foreign loader camps in China has exceeded 25%. The market share of domestic loader companies from the previous 99% has fallen below the current level of 75%.

Tower cranes entering the electricity supplier trend

At present, China's tower cranes can not only meet the needs of domestic construction projects, but also a large number of exports to Europe and the United States and other developed countries and regions, China has become the world's largest producer of tower cranes. According to public information, in 2002 China became the first country in the world with the annual output of tower cranes exceeding 10,000 units. By 2010, the annual output of tower cranes in China will reach nearly 40,000 units with exports of 2,000 units.

In order to allow customers to enjoy more professional and comprehensive services in the process of selecting a tower crane, many large-scale tower crane manufacturers in China began to look to the electricity supplier and tasted the sweetness. In fact, not all tower crane manufacturers share e-commerce cakes. Like medium and small tower crane companies, they are unable to operate e-commerce platforms on their own due to the influence of funds and talents. However, if they use network sales, especially with mature e-commerce platforms, they will be relatively simple.

Tower crane companies enter the e-commerce field and are generally divided into three ways. The first is to create an e-commerce platform by themselves. This method requires high capital and technical requirements. The second is the use of e-commerce platforms to set up operations on their own. And the maintenance team, the advantage of this model is that it can quickly bring business returns to the enterprise, but it requires high-quality operating personnel; the third is to find agency operators, traditional enterprises and agency operators to reach a benefit-sharing agreement. It can be seen that the third mode requires low cost and low threshold, which is more suitable for SMEs. However, even in cooperation with agency operators, various modes of e-commerce platforms make it difficult for small and medium-sized enterprises to choose.

At present, when many domestic SMEs use B2B platforms, awareness has become limited. They only focus on large-scale e-commerce sites such as Alibaba. However, they found that orders did not increase after they entered the market. Some companies even lost confidence in e-commerce.

At present, the domestic tower mechanical and electrical business, only pays for the online trading platform of the lifting equipment factory. Many B2B platforms use a membership system. Regardless of whether there are orders or not, annual membership fees must be paid. Manufacturers take great risks.

The lifting equipment factory shop model does not charge any fee before it is put into a single order, which is the so-called pay-by-effect method. The transaction is unsuccessful and no charge is charged. Enterprises only need to publish supply information on the platform. The factory shop will fully promote, solve inquiries, order issues, and ultimately the company will decide whether to trade. Without a single bill, companies do not need to spend a penny. Coupled with free admission, exclusive services, lifting equipment factory shop is simply a direct center of the company's online brand. Now many tower crane manufacturers have successfully settled in hoisting equipment factory stores, whose demonstration role will lead the tower crane industry into the era of e-commerce.