The two-year China International Construction Machinery, Building Materials Machinery, Mining Machinery, Construction Vehicles and Equipment Expo (baumaChina2016) is the world’s largest construction machinery exhibition—an extension of German BMW Exhibition in China. It is an Asian construction machinery and building materials machinery. The largest event in the industry is also the most unmissable professional-level assembly in the construction machinery industry.
The exhibition is not only a vane for the development of the industry, but also a big stage for companies to compete and display products. At the same time, it is also a good opportunity for enterprises to communicate with customers and peers. On the big platform of the show, companies can learn about the industry's latest developments, latest trends in technology, new product launches, and more.
Today, the construction machinery industry is in the adjustment period, baumaChina2016 is a time to test the company's innovation, manufacturing and comprehensive strength. At this moment, China Industry News is not only a participant, but also a witness and a faithful companion of the industry. No matter how the industry situation changes, we have always been with the industry and companies. We have been waving the banner for China's construction machinery industry. We have always been expecting the industry to stabilize and take a good step. We have always hoped that the industry will once again usher in gold. period. To this end, we hereby publish special editions of exhibitions to provide a platform for the company's display and encourage the company's progress.
According to the data released by the China Construction Machinery Association in recent days, in October 2016, the sales volume of excavators in China was 5,816 sets, an increase of 71.4% year-on-year; cumulative sales from January to October were 56,746 sets, a year-on-year increase of 16.9%.
The good news is not only in the excavator industry. In the same period, sub-sectors such as loaders and bulldozers also showed mild recovery. Some industry stakeholders predict that with the dust settled in the US election, domestic policy support and devaluation of the yuan, etc. To further accelerate the “One Belt and One Road”, more major projects will be achieved, and the construction machinery industry will have the development prospects that can be expected.
Meet the catalyst again
According to relevant personage analysis, there are three main reasons for the rebound of construction machinery: the growth of investment in downstream fixed assets, the low base effect of sales volume in the past year, and the mandatory implementation of the National Three Standards. Among them, the substantial increase in the start of new work on fixed assets is an important reason for the continuous improvement of sales of excavators this year.
It is expected that the sales of excavators will reach nearly 70,000 units in 2016, an increase of around 20% year-on-year. The recovery of the construction machinery industry is still continuous. First of all, it is incremental support. This year's significant increase in new fixed assets starts to provide the industry with demand support for the medium-term (6 months); followed by inventory renewal, and after the implementation of the National III standard, the inventory of engineering machinery Device update requirements will gradually be released.
The short-term demand is good, the demand for the near-term policy, and the long-term depends on updating the bottom. Since the beginning of this year, China’s real estate sales have grown rapidly and have been transmitted to the investment side, reflecting the positive recovery of both excavator sales and utilization hours. At present, most of the sales of construction machinery products are lower than the updated level of holdings. Take the excavator as an example, the social possession is about 1.4 million units. According to the update level of 10 to 15 years, the update demand is in the range of 90,000 to 140,000 units. Level. What needs to be emphasized is that updating has a supporting role for industry needs, but it will not be a decisive force. Actual sales still depend on the current construction and construction needs.
Relevant people believe that excellent companies rely on product layout and market share expansion to maintain growth potential. For mature construction machinery products, such as excavators, concrete machinery, truck cranes, etc., enterprises must maintain growth, mainly depends on whether the company can continue to expand market share.
Construction of the United States has attracted attention and construction machinery has once again ushered in catalysts. The new President of the United States, Trump, expressed many times his emphasis on U.S. economic growth, and he advocated increasing infrastructure construction to revitalize U.S. manufacturing. The amount of capital investment will reach more than 500 billion U.S. dollars and support China’s “One Belt and One Road” initiative.
Relevant people believe that the increased intensity of US infrastructure construction will favor the export demand of domestic construction machinery related equipment, coupled with the sustained sales performance of domestic construction machinery companies, and the value of construction machinery sector investment highlights.
It is understood that the $500 billion investment proposed by Trump will be used to repair the city, renovate highways, bridges, tunnels, schools, airports and hospitals, and strengthen the US infrastructure. According to the “Global Competitiveness Report” of the World Economic Forum, the quality of infrastructure in the United States ranks 19th in the world, and it is indeed necessary to increase infrastructure investment. This will benefit China’s large number of export-oriented construction machinery manufacturers and drive the entire construction machinery sector. Rising market.
The overall product sales volume of China's construction machinery companies has been significantly warmer since the third quarter of 2016. Related person analysis indicates that the warming will continue into the first quarter of 2017.
At the same time, after more than four years of industrial restructuring, listed companies in construction machinery have basically stabilized indicators such as the number of equipment start-up hours, gross margins, and debt ratios. Significant signs of recovery in profitability have begun. The overall sector adjustment has basically ended, with good sales figures and overseas. With the stimulation of policies, the industry’s value center is expected to rise.
Small construction machinery market is huge
With the development of China's economy and the abundance of types of engineering construction, the application of small-scale construction machinery is gradually expanding, and there is great potential for market growth in the future. With the constant improvement of China's infrastructure construction, the domestic construction model will gradually shift from "dragon" to "engrave", and small construction machinery and equipment will have more and more application space. With the gradual deepening of new rural construction in China, the application of small-scale equipment in the construction of rural areas and small cities and towns will increase. At the same time, with the gradual increase in the amount of construction of environmental protection, ecological construction, gardens, greening, and farmland construction, Small construction machinery must also have an increasingly broad stage.
China’s small-scale construction machinery purchase group has expanded and the purpose of purchase has become more rational. The group that will purchase small construction machinery in the future will mainly be: First, leasing companies, construction users do not need to purchase, maintain, and keep equipment, but only when they need to obtain the right to use the equipment in the form of lease; Second, the project construction unit, they buy The equipment is to meet the regular use within the company; third is the individual project contractor, the purchase of equipment is mainly to undertake the project. This type of customer is particularly large among small excavator buyers who are likely to develop into rental companies and construction contractors in the future. With the continuous popularization of small-scale construction machinery, customers’ experience has been continuously enriched, and the purchasing psychology has become more mature. Therefore, economical, practical and cost-effective products will be more favored by the market. While customers are increasingly demanding the quality of products, The higher requirements for the after-sales service of the product are also put forward.
The pace of entry into the overseas market by local-dominated enterprises has accelerated. The price of China's domestic construction machinery is generally lower than that of international suppliers. It has better cost-effective advantages and has a good export competitiveness. The quality of local enterprises has been greatly improved, and it is close to the world-class level, so local superior enterprises The products will gain a bigger market overseas and the export volume will increase day by day. With the increasing investment of local companies in overseas markets, the overseas sales and service outlets that have been hindering the export of local construction machinery have also been rapidly strengthened. All these will certainly promote the rapid increase of local construction machinery exports.
From the perspective of product structure, small excavators will continue to maintain a sustained growth. The growth potential of backhoe loaders is greater, and skid steer loaders are relatively stable.
Although the current annual domestic sales volume of backhoe loaders is only 800 to 1,000 units, among them, exports also account for a considerable proportion. However, from the perspective of development in the past two years, it is optimistically estimated that the annual sales volume of domestic backhoe loaders will be expected to reach 5,000 units in the future. According to the prediction of experts, China's backhoe loader market is already in a critical period when the lead-in period is approaching and the growth period is about to start. The potential for development is large. In the next few years, its market growth should be around 15% to 20%. With the development of engineering construction projects, the backhoe loader will enter a rapid growth period after 3 to 5 years.
China's skid-steer loaders have performed tepidly and sales have been relatively small. Currently, there are two main reasons: First, domestic users have insufficient understanding of the versatility of skid-steer loaders; second, current skid-steer loaders and their The price of the equipment is too expensive and exceeds the current capacity of Chinese customers. However, with the increasing market promotion of skid-steer loader manufacturers, customers' understanding of the product will continue to deepen, and domestic manufacturers will continue to introduce affordable skid steer loaders and attachments suitable for China's national conditions. Will warm up quickly.
The small excavator market still has many problems that cannot be ignored. In terms of market share, domestic small excavators are mainly dominated by Japanese and Korean brands such as Doosan, Hyundai, Komatsu and Hitachi, accounting for more than half of sales. Local mini-excavators have gradually expanded their market share through the efforts of suppliers such as Sanhe Intelligent and Yuchai. At present, the share of local small-digging companies in China has exceeded 30%. However, the current problem is that although the local suppliers have advantages in terms of price and cost, the technical level, quality, and reliability are uneven, and only a few companies have close to the international advanced level in quality and technology, which is mainly domestic The system construction of the enterprise is relatively settled.
In the marketing of small construction machinery, companies also have considerable confusion. Only by solving these problems of the enterprise can the entire small construction machinery market develop more fully.