Slow rise of construction machinery industry leads the company to perform steadily


According to the latest statistics from China Construction Machinery Industry Association, after the continuous decline of the construction machinery industry in the first half of the year in the first quarter, there were signs of stabilization in April and May, and the decline in the industry slowed down. The economic index data of the enterprise groups that the association has focused on shows that operating income fell 19.26% year-on-year in the first quarter, down 16.62% year-on-year from January to April, and down 13.99% year-on-year from January to May, with the decline rate significantly narrowing.

Warmer industry, positive news boosts industry growth

From the existing data, although the overall sales volume and sales revenue of the construction machinery industry show a negative growth trend, in the long run, the industry as a whole has been steadily rising. In this regard, Jun Jun, president of the China Construction Machinery Industry Association, said, “The Chinese economy is undergoing a structural adjustment due to various factors. I think the overall trend of the construction machinery industry is good, and the Chinese economy and the Chinese construction machinery industry will both Going to rationality, at the same time, a lot of good news in the near future is releasing a warmer signal."

In August of this year, Xu Shaoshi, director of the National Development and Reform Commission, stated that it will formulate plans for the release of urbanization development and related policies to improve the quality of urbanization in China. At the same time, it is proposed to accelerate the implementation of the key construction tasks specified in the “Twelfth Five-Year Plan”, strengthen the construction of railway and other transportation infrastructure, increase investment in shantytowns and supporting infrastructure, and accelerate the implementation of rural power grid transformation and upgrading projects.

It is understood that the relevant documents concerning the restart of high-speed rail investment have also been reported and are expected to be approved in the near future. If the investment is approved, it will be a strong signal for the construction machinery industry to recover. In addition, favorable policies such as increasing environmental protection investment and the government’s acceleration of the development of the western region have emerged, and have brought a new round of development opportunities for the engineering industry.

Although the industry generally believes that it is difficult for the construction machinery industry to recover to the level of high-speed growth before 2011, the overall situation of the construction machinery industry will continue to be optimistic in the future, as the pulling effect of the national steady growth policy gradually emerges. It is expected that the entire industry will be presented. Stable and sustainable development.

Consolidate stability and lead companies to lead development

Recently, Su Zimeng, secretary general of the China Construction Machinery Industry Association, also stated that for the construction machinery industry in China, the slowdown of the industry is actually a sign of a rational return. Fortunately, Chinese enterprises, during this period, will be able to actively adjust the structure, transfer methods, strive to improve product quality and brand value, lay a solid foundation for development, and tackle high-end markets. In particular, breakthroughs have been made in accelerating technological innovation and strengthening key links such as product innovation, brand innovation, industrial organization innovation, and business model innovation.

In the first half of the year, faced with the previously depressed market environment, industry leading companies including Zoomlion, Xugong Machinery, and Liugong have all chosen to inspect inventory in advance, reject low-cost promotions, and actively improve cash flow and other types of stabilization measures. Controlling the market's decline has played an important role, and even led the entire industry to return to rational development.

It is estimated that compared with the downturn in the first quarter of this year, China’s construction machinery industry’s leading brand, Zoomlion, will achieve a strong rebound of more than 2 billion net profit in the second quarter and will take the lead out of the industry’s low.

In the face of a depressed market environment, Zoomlion has been actively striving to consolidate internal strength under the “high-quality” stable development model, and has maintained a steady growth of the company by adjusting product mix, improving product quality, accelerating technological innovation, and expanding overseas markets. Taking concrete machinery as an example, in the second quarter, the sales volume of Zoomlion mixer trucks, mixing plants, and on-board pumps all ranked first in the industry, with a new record for the shipment of mixer trucks, and the market share of long boom trucks continued to lead. The Guinness World Records product 101 meter pump truck achieved its first construction. At the same time, overseas sales have grown significantly, and domestic exports have ranked first in the construction machinery industry.

Since the beginning of this year, Xugong Machinery has also added great scientific research and innovation, and has started the Xuzhou Construction Machinery Research Institute, accelerating the expansion of emerging product lines, and has achieved rapid growth in the areas of concrete products such as complete sets of concrete machinery and high-altitude fire engines. . Among them, XCMG concrete pump trucks increased by 11%, and the market share increased by 2.6% year-on-year.

Guangxi Liugong also put forward six changes including "research and development changes, marketing changes, quality changes, organizational efficiency changes, procurement changes, and cost changes," and issued "Technical Innovation Initiatives" to all R & D personnel, returning to the development of enterprises and Rational development model.

With the gradual recovery of the industry, China's construction machinery companies will also enter the "value-oriented" competition system, will increase product quality and enhance user value in the first place, and leading companies represented by Zoomlion passed Corporate innovation promotes quality development and in turn drives overall development. This virtuous cycle will also lead the entire industry to rationalize.

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