Construction machinery industry downward pressure big prospects are still bright

At present, China's economic situation is still overall depressed, and the construction machinery industry, as an important branch of China's equipment manufacturing, is still in a state of low operation.

It is reported that in the first half of 2015, 18 listed construction machinery and key parts construction machinery companies completed the operating revenue of 50.09 billion yuan, year-on-year in the first half of 2014, 70.744 billion yuan down by 29.31%; The overall net profit loss of 18 listed companies in the first half of the year was 590 million yuan, down 114.89 percent year-on-year from the profit of 3.96 billion yuan in the first half of 2014.

Under the high pressure of fixed asset investment, receivables, inventory and so on, the cash flow of enterprises in the industry is under great pressure. In the first half of 2015, the net cash flow of 18 A-share construction machinery enterprises from operating activities was -4.388 billion yuan, among which, Zoomlion alone accounted for -4.108 billion yuan. Net cash flows from corporate financing activities are also showing a downward trend. Overall, 2015 construction machinery industry losses are a foregone conclusion, the industry is in an extremely depressed state.

In order to win the initiative in the future international competition and realize the transformation from manufacturing power to power, the construction machinery industry is required to further improve the technical added value of product sales. However, the current construction machinery industry is facing a prominent problem, is the key parts manufacturing and core technology seriously restrict the industry development and industrial transformation.

In the "13th Five-Year Plan", the state stressed that during the "13th Five-Year Plan" period, we should accelerate the transformation and upgrading of traditional industries, further promote the deep integration of information technology and industrialization, focus on cultivating strategic emerging industries, vigorously develop the service industry, especially the modern service industry, actively cultivate new forms of business and new business models, and build a new system for the development of modern industries. What opportunities and challenges will the 13th Five-Year Plan bring to China's construction machinery has become the focus of the industry.

Technology innovation enhancement

In recent years, China's construction machinery industry has encountered the "new normal", and construction machinery enterprises have inevitably suffered from low operation. However, the proposal of various national policies and the gradual improvement of the industrial chain of Chinese construction machinery enterprises have increased the confidence of construction machinery enterprises to tide over the difficulties. Enterprises in the industry also seize the downturn of the industry, began to practice internal skills to improve the technical level.

It is understood that during the 12th Five-Year Plan period, our country's construction machinery industry has an obvious advantage, and the rate of self-sufficiency of construction machinery products has greatly improved; Substantial progress has been made in internationalization, and the quality of global services has been greatly improved. Eleven construction machinery companies have entered the world's top 50 construction machinery companies. The technology innovation ability has been greatly improved. From 2010 to 2014, the industry has won 1 first prize and 4 second prize of National Science and Technology Progress, 2 second prize of National Technology Invention Award, and more than 100 products have won the China Machinery Industry and provincial Science and Technology Awards.

The proportion of industrial R&D personnel increased from 7.2% in 2003 to about 15% in 2013; Energy conservation and emission reduction, rich achievements in green manufacturing; With obvious product advantages, China has become one of the countries with the most complete product categories and varieties of construction machinery in the world. The development of intelligence and information technology has made progress. Most enterprises have built an enterprise resource planning system with ERP as the core, forming an integrated management and control platform of procurement, planning, manufacturing, finance, sales and warehousing. Construction machinery industry standardization work has made new progress, construction machinery products "go out" has been supported by Chinese standards; The enterprise attaches great importance to the after-sales service of products, and actively provides users with overall solutions, which greatly improves user satisfaction. Meet the national key fields of application.

Su Zimeng, vice president and secretary-general of the China Construction Machinery Association, said, "The general idea of future industry development should take innovation as the core, prioritize quality, strengthen the foundation as the starting point, and optimize the environment as the goal."

At present, the technology development of construction machinery industry is in the digital, intelligent, pleasant, energy saving and environmental protection, megaturization and miniaturization, reduction, lightweight and other technology development stage, will be high performance, multi-function, high reliability, humanization, environmental adaptability, energy diversity and robot multi-dimensional innovation development period.

Quality manufacturing is key

It is reported that the operating profits of the 11 Chinese companies on the 2015 global construction machinery manufacturers list are only 8% of those of the six US companies, but their total assets are more than half that of the latter. The results are even more striking when compared with Japanese companies. The profits of the 11 Chinese companies are 11 per cent of those of the 11 Japanese companies, but the total assets of the Chinese companies are 1.2 times that of the Japanese companies. Although our country is a big country of construction machinery use and manufacturing, but the gold content of the product is still there is a gap with the similar products abroad. Improving quality and improving efficiency is the key to the development of future construction machinery industry. High-quality products are the key points of the integration of the two. Only high-quality manufacturing foundation can support the development of high-end equipment.

Shen Liechu, former vice minister of machinery industry and special expert adviser of China Machinery Quality Association, said not long ago in the second Council of the seventh session of China Machinery Industry Quality Management Association and the release of 100 National machinery industry Customer satisfaction products that Chinese enterprises should "comprehensively improve the quality of machinery industry products concept". It is necessary to carry out the concept of continuously improving the level of product "whole life quality", "whole life cost performance" and "whole life quality service".

He pointed out that the whole life quality is not the quality of products qualified to be handed to users, but the quality that users can maintain in the process of use; The lifetime cost performance ratio of mechanical products cannot be seen, but the reliability, maintainability, maintenance cost and efficiency of mechanical products should be seen in the whole process of use.

At present, our construction machinery industry has many problems, the first is the industrial structure of the serious surplus, including excess production capacity, land area surplus, equipment surplus, etc. Secondly, the original equipment that does not meet the emission standards of the new stage should be withdrawn from the market as soon as possible. According to the regulations, the equipment that meets the emission standards of the second stage, including the new equipment, will not be sold in China on April 1, 2016. Meanwhile, the emission related regulatory regulations need to be improved. Third, the industry post-market order has become a top priority. Finally, the innovation mechanism and innovation ability of enterprises need to be strengthened. Product performance needs to be improved, high-end products are relatively lacking, large and super large products are insufficient.

These problems in addition to the need to solve the quality of manufacturing technology, after market service guarantee quality problems are the crux of the development of the industry.

Good prospects for development

At present, there are many opportunities for further development of the industry. Energy-saving green products have the most potential market development, market demand changes promote the development of energy-saving green products, such as urban life and waste treatment equipment, construction waste treatment equipment, etc.

Construction machinery products in extreme environments such as high cold, high temperature and high altitude will also have a great development, such as Marine engineering machinery, large and very large dredgers, underwater bulldozers, ocean mainframes and other special needs products. Although the emission of non-road machinery is a huge challenge, but also an opportunity, with the advent of the era of intelligent construction machinery, construction machinery after the market potential is huge.

During the "13th Five-Year Plan" period, the construction machinery industry will adhere to scientific and technological innovation as the driving force, focus on quality and efficiency adjustment structure, achieve sustainable development of the industry, take the "One Belt, One Road" strategy, the Yangtze River Economic Belt three strategies as an opportunity, integrate resources, set up 15 research and development centers, further accelerate China's construction machinery industry to go global, implement the manufacturing power strategy.

Su Zimeng has said that in the next five years, construction machinery enterprises, especially the leading enterprises in the industry, should further increase the investment in science and technology, accelerate the R&D and innovation of key technologies, cooperate with the state to guide the structure of construction machinery products to develop to the middle and high-end direction, and limit the entry of low-end products into the market through environmental protection emission, safety, energy consumption and other technologies and regulations. During the 13th Five-Year Plan period, the proportion of high-end products should reach a comparable level. It is believed that through various measures, China's construction machinery industry will surely get out of the trough into a new good development cycle in the future.

During the 13th Five-Year Plan period, as the global economy and industrial operation become more stable and better, as well as the implementation of China's economy and favorable policies, various infrastructure construction and urbanization construction are still in the development stage. The next few years will be a key moment for the transformation and development of the industry. As one of the advantageous industries in the equipment manufacturing industry, China's construction machinery industry is bound to achieve higher quality development after deepening adjustment. China will still maintain its position as the world's largest construction machinery market. Construction machinery industry future development opportunities and market potential is huge.