The current crisis in the construction machinery industry

Since the end of last year, the construction machinery industry has never returned to normal track, followed by the appreciation of the renminbi and the "money shortage" of the banks. To complete sales, construction machinery companies have adopted aggressive marketing strategies to attract users. . In addition, some enterprises distribute goods to agents, use them for free, and frantically create sales. But in the end, they have not been able to solve the business difficulties, but have caused serious excess production capacity. The real estate dealers and the mines defaulted to refuse to pay the rent of the owner of the construction machinery, resulting in the production of large amounts of bad debts.

Analysis: Overcapacity becomes a vicious competitive incentive for construction machinery companies

Needless to say, overcapacity is a common problem in China's construction machinery industry. Take the excavator as an example. According to statistics, the planned annual production capacity of excavator manufacturers in China is about 600,000 units, but the total sales volume in 2012 is less than 120,000 units. The annual sales volume of the excavator market is forecast to 2015. It is also about 150,000 sets, and the result is that it is inevitable and vicious competition.

Duan Jiaxuan, researcher of China Investment Advisor Machinery Industry Co., Ltd., said that the concentration of large companies is not high, and in the past during the period of rapid growth, relying on extensive capacity expansion to get together in the midstream and downstream areas; while SMEs rely on OEM production and other means to expand the scale of capacity expansion. In addition, overcapacity is also manifested in the economic slowdown at home and abroad, shrinking demand and capacity can not be promptly withdrawn.

Duan Jiaxuan believes that in the early stages, the company adopted the extensive growth mode of the staking area to expand its production capacity, which has led to increased competition among enterprises. As the state’s efforts to regulate and control the real estate market have increased, and the growth rate of investment in mines has gradually slowed down, resulting in an imbalance between supply and demand in the market, and the real estate companies and the mine’s own capital situation are also worrying, resulting in large quantities of bad debts.

At the same time, Duan Jiaxuan also pointed out that in recent years, there has been a serious overcapacity of construction machinery and the blind expansion of the industry. At the moment, market funds are extremely tight, A-shares have plummeted, and investor confidence has also been hit hard. However, if the company shrinks its front line at this time, on the one hand, it means that it will lose its market share gained through "self-mutilation" in the earlier period; on the other hand, it may lose this good opportunity for transformation.

In view of this, many people in the industry believe that the most important task of the current construction machinery companies is to control financial and inventory risks, including controlling credit sales, strengthening payment collection, and reducing inventory. At the same time, with the advent of the low-profit era, construction machinery companies need to adopt new business models. This includes strengthening management, streamlining internal processes and reducing management costs; using renminbi appreciation to increase imports of raw materials from abroad and reducing material costs; shifting production bases to underdeveloped areas, using locally available cheap human and natural resources, and reducing production costs. Directly contact with foreign companies, or make full use of the Internet to develop e-commerce, reduce the intermediate links in exports, and increase the efficiency of transactions.

In addition, moderate development of overseas markets is an expedient measure. From the perspective of the export regions of the construction machinery industry in 2012, Asia remains the traditional largest market for Chinese construction machinery exports, and its market share still reaches 42.72%. Followed by Europe, Africa and Latin America. Judging from the situation in 2013, besides continuing to expand in the traditional market, Chinese construction machinery companies are also constantly looking for opportunities in emerging markets.

However, the international competitiveness of China's high-end construction machinery products is still not strong, which has always been a constraint on the further development of domestic companies in overseas markets. According to industry insiders, some high-tech and high-value-added core components of China's construction machinery, such as transmission components, control components, and key hydraulic components, also need to be imported. Therefore, to fundamentally improve the innovation capability of China's construction machinery enterprises, can make the cost have further room for decline, and help ease the current predicament.

Analysis: China's construction machinery industry related leasing crisis

It is like a firework. From the explosive growth in investment that has benefited from 4 trillion yuan to the tight control of real estate, it has become increasingly cold. In a few short years, the construction machinery leasing industry has experienced a boom in growth. Reincarnation. For many practitioners, whether to persist or withdraw has become the most tangled issue.

“Good time will be able to return to this year. Now it is really hard to say.” On the 12th, in a door room on the west section of South Second Ring Road in Jinan, Zhang Xuesheng told the Economic Herald reporter that outside the door “Machine Lease” brand Next, a small bulldozer and a small excavator quietly waited for the arrival of a new job in the light rain.

Like Zhang Xuesheng, many people who are engaged in mechanical leasing are waiting. In their eyes, they have had too much work to do in the past. Now they must be able to get through relationships. At the same time, factors such as arrears in construction costs and rising labor costs are also eroding their profits and even affecting upstream companies.

According to the previous statistics of the China Construction Machinery Association, the average default rate of the construction machinery industry in 2012 has reached 25%-30%, which means that the risk of the downturn in the real economy has been transmitted step by step to the sellers of construction machinery and financial leasing companies. And banks.

In addition to the small and medium-sized leasing companies participating, the financial leasing companies that have a background in large-scale production and sales companies play a greater role in fueling and taking more risks.

Since 2009, a number of automobile groups headed by a large group have begun to enter the financial leasing industry and have launched various services to meet the requirements of car buyers. Taking the sales of heavy trucks as an example, customers can use three types of financial leverage to make purchases. The first is payment in installments, followed by factory finance. These two models are provided by a large group to provide guarantees to banks; the third is to use The leasing platform of the huge Leye Leasing Company leases its own funds to customers who wish to purchase cars.

“Either way, it has reduced the threshold for car purchases and stimulated the enthusiasm of buyers.” Hou Changlu, associate professor of the School of Economics and Finance at Xi'an Jiaotong University’s School of Economics, told reporters that during the economic upturn, customers would be very happy to use financing. Leasing this model to enhance their business capabilities and expand their own scale.

Even if it enters the downturn of the industry, the enthusiasm of construction machinery manufacturers for the development of financial leasing remains unabated. In 2012 alone, Rongsheng Machinery, Foton Motor, Zoomlion and other companies had new initiatives in the financial leasing industry. Among them, Zoomlion’s proportion of financial leasing to operating revenue increased from about 5% five years ago to more than 50% today.

In this regard, Hou Changlu believes that fierce market competition makes the competition for customers hot, and financial leasing can attract more customers, and it is naturally welcomed by enterprises. Herald reporter on the 12th in the Jinan interview Xugong, Longgong, and several other mechanical engineering equipment vendors also found that in the product sales can still be used to purchase in phases.

Interpretation: Suicide competition in construction machinery industry

Some people made a survey of the status quo of the construction machinery industry. The results are summarized in the following four sentences:

On the one hand, it emphasizes the decline in market demand, on the one hand, it ignores the current situation of low participation in the long-term.

On the one hand, it stresses the pressure of creditors' rights, on the one hand, it does not attach importance to the management of risk and the handling of creditor's rights.

On the one hand, it emphasizes the strong combat effectiveness of competing products. On the one hand, it does not study specific strategies and tactics of competing products.

On the one hand, they are envious of the best brands in the industry. On the other hand, they are not willing to seriously learn advanced experience and put it into practice.

This is a reality that exists within the Chinese construction machinery industry. That is, a considerable number of companies have a clear understanding of the current market situation, but they are still passively involved in this suicide-like competition, and are increasingly mired in low-end competition. Deeper depression. If for-profit business operators are required to face the construction machinery market from the perspective of the so-called overall situation and the elimination of excess capacity, it is tantamount to dreaming. Therefore, what companies can do and are willing to do is still trying to expand market share. Rate, as much as possible from the shrinking cake a little more.

However, for enterprises, under the conditions of overcapacity, some companies suffer losses and even launch the trend of the industry. Therefore, the current internal competition in the industry is increasingly fierce fratricide. Who can laugh at the end, who knows the best. But conversely, only the best laughing companies can laugh at the end.

Industrial upgrading is the trend of the times. Intelligent, environmental protection, branding, and green efficiency are the major trends in the future development of construction machinery. When they follow the trend, they will die in the opposite direction, passively adapting and actively responding to market demands. The two are not the same. . For example, some international giants are greedy fish, many industries have his presence, which is called love for diversification, while the domestic small business more than a few production lines is called the development of ideas is not clear? Why? Profit!

The acquisition of profits, business operators clearly recognize that, to establish a good brand, to strengthen management, control risk, we must have advanced strategies and tactics to deal with the market, otherwise, our construction machinery business is still playing soy sauce.

The enterprise is the main body of the market for profit, and the profitability of the enterprise is the most important indicator of the strength of the enterprise. There is no one. Since the huge changes in the construction machinery industry, the market demand has shrunk, the sales volume of various enterprises has declined, the accounts receivable have remained high, the risk of bad debts has increased, and profits have declined. Businesses value profits more than ever before. This is also a critical moment for testing companies. The goal of profitability is increasingly difficult to achieve, and the difficulty of making money and making big money is also increasing.

However, there is a saying that there are no non-profitable industries and only non-profitable enterprises. Even in the period of sharp adjustments in the industry, there are still some companies that have made great achievements in the past. There have been many achievements. Of course, there are also giants who have fallen down. However, it is more common for those who “make soy sauce” to go all year round. Very lively and lively, in the end it was too late to be hungry. The proof was that "I haven't fallen yet." That's it.