Discussion: How Can China's Construction Machinery Industry Develop Healthily?

2013-07-23 533 0人评论
    Since the beginning of 2013, the industry has been plagued by persistent problems, with declining sales and thinning profits. Faced with an industry beset by such "chronic ailments," what must we do to make it healthy? Facing the current construction machinery industry's diseased state, we must return to a rational model of industry development. Although industry players have already grown accustomed to the diseased state, if we do not step outside the disease to examine it, the industry will never become healthy. Now, as the industry moves toward rationality and normality, overcapacity and various bubbles are gradually being consumed. Only when the prosperity fades away can true purity be seen.

    Looking further, for enterprises to achieve substantial development, what cannot be ignored is the direction of the national economy. At present, China's new leadership collective has put forward a series of economic reform agendas, and many reform measures are being advanced. "China is in an important period of economic transformation, and some frictions and contradictions will inevitably arise, and at certain points in time such frictions and contradictions will be relatively intense," pointed out Zhang Chenghui, director of the Finance Research Institute of the Development Research Center of the State Council.

    The healthy development of an enterprise is inseparable from a clear positioning of itself—not only its positioning within China's construction machinery industry, but also stepping outside this industry to position itself from the broader perspective of the equipment manufacturing industry. What role does your enterprise actually play? What is the direction of customer demand? Looking back over a decade of development, what image does it have in customers' minds?

    If an enterprise wants to accomplish something in the tide of industry adjustment, it must follow the general trend and shift from a competitive approach based on products and prices to one based on quality and the technological content of products. However, these efforts still require enterprises to conduct objective research themselves, rationally evaluate themselves, establish a manageable positioning for the enterprise, and examine their own development and progress. Construction machinery enterprises have adapted to past rapid growth and smooth sailing, but if they can grasp the opportunities within the current crisis, they will certainly be able to make the industry healthy.

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