Foreign investment step 3: after installation, the parts "plunder" half the sky of construction machinery
foreign parts "plunder" half the sky of construction machinery
China Construction machinery information
Guide: from 76737 units in 2008, to 93018 units in 2009, and then to 165804 units in 2010, in just three years after the financial crisis, the sales of excavators have increased like crazy. According to the statistics of China Construction Machinery Industry Association, in March 2011, 24 major excavator manufacturers sold 43063 excavators
from 76737 units in 2008, to 93018 units in 2009, and then to 165804 units in 2010, in just three years after the financial crisis, the sales of excavators increased rapidly like crazy. According to the statistics of China Construction Machinery Industry Association, in March 2011, 24 major excavator manufacturers sold 43063 excavators, with a year-on-year increase of 42.92%, setting a new monthly sales record; From January to March, a total of 74214 excavators were sold, with a year-on-year increase of 58.6%, continuing the high growth rate. The sales volume in March hit another record in the same period of previous years
the booming and huge profits in China's construction machinery market have made other domestic industry giants "salivate". Wuliangye Group, which produces Baijiu, Rongsheng heavy industry, which makes shipbuilding, Geely Group, which makes cars, and other "laymen" have begun to embark on excavator projects. Is the influx of so many enterprises into the excavator industry a harbinger of the rise of China's excavators? Or the beginning of intense market competition
Where is the cornerstone of the rise of new and old enterprises?
some analysts believe that in the next few years, there are two trends that seem to be irreversible, one is that the proportion of local brands will reach 50%; The other is that excavators will snatch part of the market from loaders. These factors express that the future of excavator industry is worth looking forward to. Although overcapacity has begun to appear, the imbalance between local brands and foreign brands still makes many local enterprises have the confidence to invest a large amount of money in the field of excavators. At present, although the competition in China's excavator industry has been very fierce, there are few enterprises with a market share of more than 10%, and the industry sales ranking is changing greatly every year. This shows that there are still great variables in the industry structure, which makes many enterprises see the hope of entering the market
in 2010, while the sales of excavators increased rapidly, the market share of foreign brands increased slightly, which seems to explain a problem - at present, the industry role of local brands is not strong enough. If the operation is proper, it is possible to impact the existing pattern. In particular, enterprises such as Foton Lovol heavy industry, Sany Heavy Industry and Yama reconstruction machinery have performed miracles of industry growth in turn, which also provides confidence for new entrants. In addition, at present, local enterprises are generally facing the embarrassing situation of global procurement of core accessories, which also makes new entrants feel that the barrier is not big. As long as they have enough capital and can build a supply chain that automatically stops after reaching the set number of times, it is enough to ensure that their products are not too bad
according to experts, the large industrial span, and the slow and continuous loading and unloading can become an obstacle for new entrants to the excavator industry. In fact, a considerable number of existing enterprises in the industry did not start from manufacturing construction machinery. If these enterprises have the production experience of equipment manufacturing, some general technologies can also be used for reference, and their entry threshold will be lower. This is the advantage of Rongsheng group, China heavy truck and other enterprises, as well as the advantage of other similar enterprises to enter the excavator industry. However, can this become the cornerstone of the rise of national brands
core components restrict the rise of national brands
the essence of market competition is to obtain profits. What is cruel is that behind all manufacturing enterprises' efforts to innovate sales models and reduce business thresholds in order to achieve performance growth, high profits are taken away by key component suppliers
at present, the technology of high-end core accessories such as hydraulic pump and hydraulic motor, power shift gearbox, wet brake drive axle, slewing ring and integral multi-channel valve are all in the hands of foreign enterprises. Domestic construction machinery brands mostly use foreign core parts, such as Cummins and Isuzu for diesel engines, Kawasaki and Rexroth for hydraulic parts, and ZF for transmissions. A professional organization conducted an investigation on this in 2010. The results showed that among the construction machinery accessories to be matured in China, hydraulic parts accounted for 88%, of which high-pressure hydraulic system accounted for 52%, variable hydraulic system accounted for 36%, which was several times higher than the engine ranked second. What is more worrying is that the excavator, which is the most popular in the current market, is the field with the most serious lack of accessories. The proportion of blank spots is as high as 42%, which is almost twice that of pavement maintenance machinery, which accounts for the second place. This means that nearly half of the parts and components of more than 100000 excavators manufactured in China in 2010 are completely imported, of which hydraulic parts occupy the first place
according to the statistics of Hunan Machinery Industry Association, the import cost of parts and components accounts for more than 40% of the manufacturing cost in the host products produced by construction machinery enterprises above Designated Size in the province. For enterprises, this not only increases the manufacturing cost, but also restricts their normal production. Wang Min, chairman of XCMG group, once said that many parts of XCMG's export products are imported from abroad, and the cost of purchasing foreign parts accounts for 30% of the export price. In 2007, XCMG earned foreign exchange of $500million, while the purchase of foreign parts cost 2billion yuan. Foreign parts account for only 40% of the sales of export products, but account for 70% to 80% of the profits
the cruel reality of overcapacity must be faced.
Li Hongbao, Secretary General of the excavator branch of China Construction Machinery Industry Association, pointed out in a report on the forecast of future excavator market production and sales that after deducting uncertainties and the impact of domestic stability and good economic situation, China's excavator sales are expected to grow by more than 15% in the next three years. It is expected to reach 190000 units in 2011, 218000 units in 2012 and 250000 units in 2013
the production capacity targets announced by major excavator manufacturers are: Sany plans to produce and sell 25000 excavators in 2011; The sales target of XCMG is to achieve 10000 sets to drive the upward and downward movement of stretching attachments (or tightening and zigzag attachments); Liugong aims to sell 30000 units by 2015; According to the company's development strategic plan, Xiamen Engineering Group plans to implement an investment project with an annual output of 12000 excavators; Guangxi Yuchai and Sichuan Bangli invested in the project of large and medium-sized excavators in Luzhou, with a total scale of 2billion yuan. After completion, the annual production capacity of 5000 large and medium-sized excavators will be formed. Among the second and third tier brands, the investment intensity of each brand can not be underestimated. Rongsheng heavy industry invested 3.4 billion yuan in Anhui to start a project with a capacity of 30000 excavators and 400 rotary drilling rigs; Pushi Heavy Machinery Co., Ltd., a subsidiary of Wuliangye Group, has also invested more than 400million yuan to produce medium and small excavators. After the completion of the project, the annual production capacity will be 10000 units...
the gap between the target output and the sales forecast is obvious. Zhan Chunxin, chairman of Zoomlion, in response to the question about why there is no great shopping for the excavator market when the excavator manufacturing platform in Xinhuang Industrial Park has a huge capacity, made it clear that at present, China's excavator market is making a foam, and the production capacity is significantly greater than the market demand. Moreover, unlike concrete machinery, excavators are supported by market policies, and the demand for earthwork cannot guarantee the continuous expansion of production capacity. In this context, in order to expand the market, excavator manufacturers generally adopt the market method of "shopping on credit". Once the earthwork market is bad, a large amount of surplus is bound to cause bad debts, which is tantamount to "killing the goose that lays the golden egg"
Qi Jun, chairman of China Construction Machinery Industry Association, sounded an alarm to the excavator industry at an industry conference held not long ago. He pointed out that the number of excavators in China is increasing rapidly, but we need to pay attention that the country will not always support the construction of infrastructure projects with such high expenditure, and China's economy will also have cyclical nodes. When the growth of excavators in China exceeds the demand, How should our enterprises face such a market environment