Can the Market Bring High Profits to Construction Machinery?

2013-07-03 512 0人评论
       Due to various factors, the profit margins of domestic construction machinery enterprises are being continuously compressed, especially the decline in net profit per unit sold. The profitability of the aftermarket will determine whether host-machine enterprises are profitable.

    Hitachi Construction Machinery's host-machine plant in Europe has a very large parts warehouse. Its parts center covers an area of 100,000 square meters, can normally store 70 million euros worth of parts, and has annual sales of 120 million euros.

    If the ratio exceeds 100%, it proves that the dealer can make money even without selling a single machine. At present, in several regions of Hitachi Construction Machinery's European company, this ratio ranges from 35% to 135%.

    From this we can see that whether the aftermarket is the main body of enterprise profitability is a yardstick for measuring whether a country's construction machinery market is mature, and it can help enterprises obtain more profits. If China's construction machinery enterprises want to accelerate the improvement and perfection of their aftermarket development, technological innovation will be a key link, because only more innovative designs and technical patents can guarantee aftermarket profitability, especially in terms of construction machinery parts. Therefore, to achieve a better profit model, enterprises must rely on increasing aftermarket profits and reducing dependence on new-machine sales. Independent innovation and the upgrading of core technologies will bring enterprises a better future.

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