Some insiders said that innovation is the inexhaustible driving force for the development of my country's construction machinery industry. It is not only the only way to jump out of the cycle and climb to the peak, but also the only way to develop from a market follower to a market leader. With the rapid development of 5G communication, big data, cloud computing, artificial intelligence and other technologies, the high integration with various construction machinery and equipment will inevitably generate new value creation forces.
Excavator industry through the cycle
As soon as the excavator rang, gold was ten thousand taels. If the construction machinery industry is the "vane" of macroeconomic development, then excavators, the "jewel in the crown of construction machinery", can more intuitively reflect the heat of investment and the temperature of economic development. Since the stabilization and recovery in 2016, the high growth of the construction machinery industry has continued for 5 years, and the performance this year is particularly impressive. From January to November, the sales volume of China's excavator market exceeded 296,000 units, a year-on-year increase of 37.4%, far exceeding the sales volume of last year and setting a new record high.
Wu Peiguo, secretary general of the China Construction Machinery Industry Association, said: "The domestic market has continuously set a single-month historical sales record since March this year, and the market recovery has far exceeded industry expectations. The continuous growth of the market for many years is a product update. It is caused by the superimposed effect of the cycle and inventory cycle. The construction machinery industry represented by excavators has passed the bull-bear cycle and has become an important part of the economic engine during the epidemic."
Shouzheng innovation starts again
At the time when the construction machinery industry was thriving, many people in the industry made a calm voice and aroused the participants' thoughts.
Li Hongbao, Executive Vice President and Secretary-General of the Excavating Machinery Branch of the China Construction Machinery Industry Association, said: “When any industry is moving upward, opportunities and risks coexist. Enterprises need to remain calm and rational. Currently, excavators are the representative When the construction machinery market is booming, sales are increasing, and the stock market is rising, everything is good, and it is also the time when risks accumulate. According to the association's survey, the production capacity of Chinese excavators has reached about 600,000 units, far exceeding market demand. The industry’s rapid expansion must attract enough attention from the industry. Companies must remain calm and rational. They must not blindly expand the scale of their production capacity, and they must not resort to price wars. Otherwise, they will run wild on the road to death."
He Qinghua introduced the industry cycle situation: "We make statistics on historical data. The excavator is a fixed-input, long-period depreciation equipment with a certain cycle characteristic. It experiences a short cycle every 3 to 4 years and a medium cycle every 10 years. There is a long cycle every 20 years. The excavator industry has experienced a cliff-like decline in 2012, so the company's risk control cannot be relaxed for a moment."
He Qinghua also said: “In 1999, in the world’s top 50 construction machinery list, China had only one company from XCMG. Today, there are 12 companies on the list in China, and there are only 4 in Changsha. Chinese construction machinery manufacturers A follower in the international market has become one of the leaders in the international market. Every time we experience the bull-bear cycle, Chinese construction machinery manufacturers will become stronger, and I believe this time will be no exception. At present, 5G communications, big data The advanced development of technologies such as, cloud computing, artificial intelligence, and the high integration of various construction machinery and equipment will inevitably generate new value creation forces."
He Qinghua’s views were endorsed by the attendees. Long Hui, chairman of Jiangsu Lihao Construction Machinery Co., Ltd., told the reporter of Securities Daily: “After the market downturn in 2012, many enterprises have transformed and upgraded, merged and reorganized, forming a diversified and comprehensive And multi-field attempts and explorations have formed a number of representative construction machinery. In 2016, the market entered a growth market. Leading enterprises quickly occupied the market with all-round advantages, and the market concentration increased significantly. In the future, construction machinery head Enterprises focus on the mainstream market, small and medium-sized enterprises intensively cultivate sub-fields, and differentiated competition will make the industry healthier. Artificial replacement and the international circulation of new and used equipment will be the outlet for new high sales of construction machinery in the next decade."