The heart of industry - China's construction machinery faces four major crises

The industrial level is a key indicator to measure the degree of development of a country, and mechanical engineering is called the "heart of industry." The construction machinery industry is a fixed assets investment-driven industry, and its development is closely related to the economic cycle of the national economy. In recent years, the level of production and processing in the construction machinery industry in China has been booming. In the first half of 2010, there have been blowouts. The operating income and profit growth rate of many leading companies have increased by 100%. The rapid expansion of China's construction machinery market is due to the rapid growth of China's economy, the expansion of domestic demand, and the continued warming of infrastructure construction. Although in the second half of 2010, due to factors such as the adjustment of real estate policies, the investment in fixed assets slowed down, and the growth rate of the machinery industry declined significantly. However, in general, China's industrialization and urbanization are continuously improving, and the future construction tasks are still huge. The increase in demand for construction machinery products will also directly promote the rapid development of the construction machinery industry.

In the analysis of the "12th Five-Year Plan" situation, China Construction Machinery Industry Association, Jun Jun believes that in the next two years, the country's fiscal policy is expected to continue to be the main active, the main monetary policy stability, so the entire society fixed asset investment The annual growth rate is expected to be around 20%, of which urban investment will still account for about 85%, and projects including railways, highways, transportation, energy, urbanization and real estate are still one of the main investment directions. "The rapid development of strategic emerging industries, the further development of the western development strategy, the revitalization of Northeast China, the rise of central China, and the construction of Xinjiang and other national strategies will create a good market environment for the construction machinery industry." Yu Jun expects that by 2015, China's construction machinery The sales revenue of the industry will reach 900 billion yuan, with an average annual increase of more than two digits. In terms of exports, Jun Jun analyzed that by 2015 China's export of construction machinery products will reach around US$20 billion and become a world exporter.

In the face of this wonderful situation, it is also a time to think with joy. Is it the world's largest country in construction machinery? Is it equal to becoming a “world powerhouse” for construction machinery? A closer look at China's economic development, considering the changing global economic situation, it is not difficult to find that the future development of China's construction machinery industry will face costs, technology, environmental protection and other crises. Compared with some foreign countries, our country's construction machinery industry is big and not strong.

First, the appreciation of the renminbi. This year, under various pressures, the renminbi had to appreciate. Looking at the entire domestic construction machinery market, once the renminbi appreciates, foreign products will make more inroads into the domestic market and seize market share. However, domestic product exports will decrease, and the trade surplus will shrink, which will inevitably make the domestic market more competitive. On the one hand, the reduction in exports, on the one hand, is that the price advantage of many companies in the domestic market has decreased, and the construction machinery industry in China has to survive and develop in the cracks. There are still many difficulties to overcome on the road ahead.

Second, the raw material cost and labor cost crisis. The main raw material for construction machinery is steel made from iron ore. The price of steel directly affects the production cost of construction machinery companies. Since 2010, Australia has significantly increased the proportion of mining tax collection. As the cost of mining tax increases, it can only be passed on to buyers. China is the world's largest importer, and it can be imagined. For decades, a large part of China’s industrial development has benefited from the cheap labor. While China is gradually emerging from the shadow of the economic crisis in 2008, many rural areas have seen shortages of workers. When labor costs face a crisis, labor-intensive industries either shift their businesses to areas with low labor costs, or choose to transition to technology-intensive ones, or they will be eliminated by society. Although the construction machinery industry cannot be completely labor-intensive, many enterprises still take advantage of cheap labor in the market, and therefore face transformation challenges.

Third, the core technology crisis. The core technology determines the status of the construction machinery industry in the international market. Although the output of major industrial products ranks first in the world, China's manufacturing industry is generally in the downstream and low-end position in the global industrial chain. What are the reasons? The key issue is that our core components and parts are subject to foreign restrictions, low value-added products, a small proportion of products with independent intellectual property rights, and lack of international competitiveness.

Only by increasing the horsepower in the R&D of core components and technology can we achieve a major breakthrough in the international market share.

Fourth, energy-saving emission reduction crisis. Environmental issues are a topic of global concern. The development of a green economy has become an international trend. The machinery industry is a large group of carbon emitters, and energy conservation and emission reduction are imperative. Some experts in energy and environmental protection have proposed that China start the collection of carbon taxes from the “Twelfth Five-Year Plan”. If large quantities of low-level construction machinery are to be produced in the future, unless the low-carbon standards are implemented, carbon taxes can only be paid. In recent years, some companies have begun to pay attention to hybrid power, remanufacturing, etc. This is an exploration and attempt of the industry to develop in the direction of energy conservation and environmental protection. We expect that in the new round of energy-saving competitions, Chinese national brand companies and products will be able to rewrite history and create a new situation in the global industry market.

Crisis, dangerous and organic. At present, China's construction machinery industry is prosperous and its achievements are gratifying. In order to realize the crisis in advance, we will be able to raise vigilance on the road ahead, avoid risks, and find the right direction for development, from the "major mechanical power" to the "mechanized powerhouse".