Excavator sales hit record high for the whole year
Data show that China's excavating machinery industry performed well in the first ten months of this year, not only achieving high-speed growth in the domestic market, but also export growth. However, experts remind that there is adjustment pressure in the current industry. It is necessary to strengthen risk prevention, maintain rationality, respect the market, not use price as the main market competition method, and do not aim at the temporary market share.
Although the automotive industry continues to decline, affecting the performance of the entire machinery industry, in 2019, the excavation machinery industry in construction machinery has become a "bright star."
Li Hongbao, executive vice president and secretary general of the China Construction Machinery Industry Association Excavation Machinery Branch, said that from January to October 2019, the domestic excavator market sold 196,222 units, an increase of 14.4% year-on-year. foregone conclusion.
"China's excavation machinery industry has come from 'introduction' and 'going global'. With the implementation of the 'Belt and Road' initiative, industry companies have continuously strengthened their internationalization and created another business card made in China." Li Hongbao said.
Strong enterprise Hengqiang trend is obvious
Benefiting from the combination of multiple factors such as mainframe renewal, inventory cycle, overweight infrastructure construction, stable real estate investment, environmental protection policies, second mobile phone clearing, and market confidence recovery, the excavator has begun to enter the upside since the second half of 2016.
"In 2019, the domestic excavation machinery market generally maintained a growth trend. Even after experiencing year-on-year declines in May and June, the market rebounded to a high point again." Li Hongbao said.
Not only has it achieved rapid growth in the domestic market, but also in the international market with complex situations, China's export of the mining machinery industry has also grown against the trend. In the first three quarters of 2019, the 25 mainframe manufacturing companies included in the statistics exported a total of 19,385 excavating machines, a year-on-year increase of 39.9%, and the pace of internationalization of leading companies has been accelerating.
In recent years, as the pace of internationalization of domestic brands has accelerated, foreign brands have increased their investment in China, and the sales volume and proportion of mining machinery exports have generally increased. After nearly 10 years of development, the sales volume of the excavation machinery export market has increased several times, and the market share has also increased from less than 2% to about 10%, which has become a useful supplement to the domestic market.
From the perspective of corporate sales, the market share of domestic brands has increased year by year, especially the leading brands such as Sany, Xugong, Liugong, and Lingong have grown strongly. In contrast, sales of foreign brands have mostly declined. In October 2019, the domestic market share of domestic brands of excavation machinery was 66.8%, compared with 11.7% for Japanese, 11.3% for Europe and the United States, and 10.2% for Korean.
Zhang Quanwang, general manager of Komatsu (China) Investment Co., Ltd., said that in recent years, Chinese domestic brands have become smaller and smaller than international brands in terms of manufacturing level, technology, and after-sales service. In overseas markets, Komatsu has felt certain pressure from Chinese domestic brands.
Li Hongbao analyzed that the market concentration of the excavation machinery industry has further increased and its leading advantages have become prominent. In 2019, all six companies with a market share of more than 5% achieved positive growth, while seven of the nine companies with a share of less than 1% achieved negative growth. The market is highly concentrated, and the strong are always strong. In the future, the exit and transformation of some companies will be inevitable.
Embracing Digital Trends
For 10 years, Sany Heavy Machinery has consistently ranked No. 1 in sales of excavators. In the first nine months of 2019, the share of Sany excavators in the domestic market reached 25%.
"The first consecutive sales in China, we also hope to achieve the first in the world as soon as possible." Yuan Yue, senior deputy general manager of Sany Heavy Industry, said that Sany currently has two tasks to do well: internationalization and digitalization.
Yuan Yue said that actively promoting digitalization and other strategies has significantly improved the core competitiveness of Sany. In the next three to five years, Sany's products will become more and more intelligent to meet the increasingly diversified needs of customers. Big data will serve all aspects and areas of Sany products.
Shandong Lingong Construction Machinery Co., Ltd. has developed rapidly in the past 5 years due to the intelligent manufacturing system it has built. From January to September this year, Lingong's market share reached 7.5%, surpassing international brands Doosan and Komatsu, ranking fourth in sales.
Lin Mengsheng, President of Lingong, introduced that through the extensive use of information technology and intelligent advanced manufacturing technology, the quality of Lingong products has been significantly improved. In 2019, Lingong became the first Chinese company to win the 7-Star European Quality Award. At present, Lingong's remote remote driving technology and unmanned driving technology have both been implemented. The remote control system built using the 5G network, using remote control technology, low-latency data transmission technology, 3D display technology, etc., can improve operator safety and reduce labor intensity in harsh environments such as mines, underground, high temperature, and radiation.
Fan Jian, the founder of Tiejia.com, believes that in the next three to five years, construction machinery companies will gradually realize digitalization. The level of digitalization of the entire industry will be greatly improved, and enterprises that start digitalization as soon as possible will seize the opportunity. Digitalization will become the core competitiveness of domestic enterprises in the process of internationalization.
In addition, Fan Jianshe said that there are still many manufacturing giants in the industry that are developing remote and autonomous driving technologies. These innovative cutting-edge technologies will gradually mature and bring revolutionary changes to the industry.
Awe to market rational competition
Looking back on the development history of the Chinese excavating machinery market in the past 10 years, we can see that the market shock is extremely obvious, and the sales volume between the peak and the trough is 270%. The total market sales in 2011 was 176,136 units, a record high at the time. Since then, it has continued to decline for 4 years, and it did not start to improve until the second half of 2016.
Facing the great situation in the current market, excavator companies are particularly calm.
"The past 10 years have been 10 years of profound changes in the Chinese excavation machinery market, and 10 years of maturity and rationality of the market." Qi Jun, president of the China Construction Machinery Industry Association, said that the market with the longest cycle and the deepest pullback allowed young China The mining machinery industry has learned to be in awe of the market.
Lingong Chairman Wang Zhizhong said that the last round of rapid growth was stimulated by investment, and the industry frenzy had very serious consequences. Next, there will be troughs in the adjustment of the high level, and the personal forecast decline is within 10%.
Fan Jianjian believes that with the further increase in labor costs next year, the replacement of labor by machines will be unstoppable, and the demand for small and micro-digging will continue to be strong. Expected to be flat or down.
"Experience in both the international and domestic markets proves that the excavation machinery industry is a typical cyclical industry." Qi Jun said that from 2011 to August 2016, the lessons of construction machinery have been miserable. At present, there are still some excavator companies that have not digested the bad debts of the accounts receivable at that time, and the accounts receivable lost more than 20%. At present, the domestic market has experienced 4 consecutive years of growth, and core market driving forces such as new demand have gradually weakened. In the next 2 to 3 years, the market may show a steady downward trend.
Zeng Guangan, Chairman of the Excavation Machinery Branch of the China Construction Machinery Industry Association, believes that there is adjustment pressure in the current construction machinery industry. Industry enterprises must strengthen risk prevention, maintain rationality, respect the market, not use price as the main market competition method, and do not use the temporary market share aims.
Zeng Guang'an said that China's economy is in a period of important strategic opportunities for development. Although the international situation is complex and volatile, investment in infrastructure construction has increased, demand for mining machinery has continued to develop, and customer demand has continued to escalate. China's future market still has great potential.Excavator sales hit record high for the whole year