Liu Jin: Sluggish Construction Machinery Market Forces Enterprises to Transform Their Development Mode

2013-08-14 645 0人评论
       Among the 64 major products of the machinery industry published by the National Bureau of Statistics, 36 products achieved year-on-year output growth in the first half of the year, accounting for 56.25%; 28 products saw a year-on-year decline, accounting for 43.75%. Specifically, industry divergence has intensified, and enterprises producing typical investment-related products are facing greater difficulties.

  At present, the construction machinery market is relatively sluggish, the growth rate of production and sales of many products has declined, and the difficulties encountered by industry enterprises have increased.

  Specifically, in the first quarter, 41,486 loaders were sold, down 12.2% year on year from January to April and down 7.36% from January to May; in the first quarter, 2,589 bulldozers were sold, up 2.51% year on year from January to April and up 1.5% from January to May; in the first quarter, 32,822 excavators were sold, down 25.68% year on year in the first quarter, down 17.5% from January to April, and down 13.9% from January to May.

  July is the traditional off-season for the construction machinery industry. In addition, factors such as heavy rainfall affecting construction progress and funding problems hindering the resumption of projects affected sales of construction machinery products in July, which were lower than expected. Relevant data show that monthly sales of excavators fell 23.2%, loaders fell 27.5%, bulldozers fell 14.7%, and road rollers fell 26.4%.

  This year, the macroeconomy has grown steadily, and there are signs of slight growth in demand in the construction machinery market. However, the market situation in the second half of the year is still not optimistic. According to the survey points of enterprises for the China Economic Equipment Manufacturing Industry Prosperity Index, sales in July were basically in line with expectations. Most enterprises reported that sales in the off-season have tended to stabilize. Although year-on-year data may show some improvement, market expectations are relatively cautious, and manufacturers generally believe that the situation in the second half of the year will not improve much.

  Some industry insiders said that there may be two possibilities for the construction machinery market in the second half of the year: one is that the state introduces a small-scale economic stimulus policy to boost part of demand; the other is that the state basically maintains existing policies unchanged and no other special circumstances occur in the market. Overall, against the backdrop of the state placing greater emphasis on giving play to the fundamental role of the market in allocating resources, the construction machinery market is expected to operate in a "steady" state in the second half of the year. The current industry operation basically reflects the real market situation, constrained by supply and demand rather than artificial control. Since the construction machinery market has entered a track of steady development, enterprises should focus more on their own adjustments, for example, enhancing corporate competitiveness and improving service quality.

  The China Machinery Industry Federation recently released a report saying that since the beginning of this year, the operation of the machinery industry has continued the slight recovery trend seen since last year, but affected by factors such as rising costs and overcapacity, it is still difficult to say that the entire industry will improve significantly. It is expected that a moderate recovery will still be shown for the whole year. Against the backdrop of a more complex economic environment and a relatively severe industry operating situation, the foreign trade exports of the machinery industry are also very severe, and the cumulative export growth rate has continued to decline. From January to June, the cumulative total export value was US$175.3 billion, up 1.51% year on year, with the growth rate down 7.76 percentage points from the beginning of the year and 8.89 percentage points lower than the national foreign trade export growth rate in the same period. On a monthly basis, exports in three months of the first half declined year on year. In June, export value was US$29.9 billion, down 4.63% year on year, with the decline widening by 2.62 percentage points from May.

  From March 2011 to the end of July 2013, the operation of China's construction machinery industry had been sluggish for 27 consecutive months. This industry, which for many years has been accustomed to annual industry growth of 30% and annual growth of 100% for some enterprises, is now facing a severe market test, and the difficulty of enterprise production and operation has increased. However, from another perspective, this is a good opportunity for the market to force enterprises to accelerate the transformation of their development mode and adjust their structure. When market growth slows down, construction machinery enterprises that want to achieve sustained and healthy development must shift from scale growth to connotative development, work hard on internal strength, accelerate upgrading, and truly focus on improving the quality and efficiency of development.

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