China's construction machinery business

In 2010, construction machinery industry growth momentum is very strong, Sany Heavy Industry, Shandong Heavy Industry, Xuzhou Construction Machinery Group, Zoomlion, Liugong Group, pledged to the 'second five' Dynasty 1,000 billion yuan in sales revenue, other 11 cumulative group sales of large enterprises will reach 600 billion yuan. Chinese engineering machinery enterprises to enter the one hundred billion sales target for the race has begun. However, in one hundred billion behind the competition, but also contains significant risks.
Hidden danger: uncontrollable factors (policy, raw materials, labor shortage)
National policy is critical to the construction machinery industry, construction of four trillion investment progressive end, the target company at this time that one hundred billion, is bound to expand capacity, increase investment in fixed assets. But all these decisions are based on economic blowout development,laundry equipments the rapid development of industry in recent years on the basis of the next few years if the industry can maintain the great growth? Countries to develop a credit policy, monetary policy will be adjusted, will affect the development of enterprises.
In addition, the construction machinery industry of raw materials - iron ore price and there are also significant variables. The end of 2010, the three mines have delayed delivery of new capacity announced in 2011 is expected to add the amount of 90 million tons of ore, much lower than expected before the 130 million tons. It is reported that a significant decline in demand does not appear under the premise of the other countries taking into account the resource-based exchange rate appreciation and the global abundance of liquidity, iron ore prices will remain high continue to rise in 2011,stone crusher the average price increase of about 10%. Cost price of construction machinery industry is facing a situation, how to transfer the cost pressure, companies will have to become one of the crisis facing.
Raw material prices, resulting in the industry cost pressures, labor costs are obviously also allow enterprises to once again frowned. Chinese New Year all over again after the emergence of a labor shortage, construction machinery industry in the editing process with the corporate communications industry, have also had the company mentioned, and now recruitment is difficult, an extreme shortage of human resources. One hundred billion slogan put forward, the inevitable will expand production capacity, enrollment staff. But the current situation, human resource issues are not well resolved.
China's construction machinery deterioration of some products of excess competition
Risk II: excess capacity
It is understood that in 2011 construction machinery industry sales growth of about 20%, profit growth of 20% to 30%, industry profit growth than revenue growth. In the main sub-sectors, excavator industry sales growth of 25% of the domestic excavator market share will further increase; crane sales growth is expected to exceed 20%, loaders and concrete machinery sales growth is expected to exceed 10% of truck demand remained stable,filling machine sales growth is expected to more than 30%.
In 2008 the state's 4 trillion investment coming to an end, if the 2011 can not maintain this intensity of investment in downstream infrastructure needs will be reduced, the industry is likely to be excess capacity. The excavator, for example, according to the China Construction Machinery Industry Association statistics show that in 2011, excavator sales in China will reach 16 million units, an increase of 60 percent. The China Construction Machinery Industry Association, industry sales forecast for 2015 could reach 900 billion yuan this data base, 2015, excavator sales in China will reach 36 million units. According to industry estimates, by 2014, China's excavator production capacity of 425,000 units, taking into account the import of products to bring the market capacity can not be ignored, the domestic excavator market overcapacity problem will be extremely prominent.
Hidden 3: Technical bottlenecks
Technical bottlenecks can not be ignored: the localization of key components is lagging behind, hydraulic parts, transmission and other great majority of imports from abroad. In the capacity expansion at the same time, will be more dependent on imported parts and components,cone crusher foreign parts suppliers supply cycle is too long and the short supply will be restricting the development of the industry is another factor.
Breakthroughs in key parts of construction machinery industry will be an important force points, but the current state of the market remains a concern. Foreign brands in this field position of absolute advantage. Their shipments and lead times directly affect the company's production capacity,diesel generator if the foreign control of the use of these two production capacity of Chinese enterprises, even if domestic demand is widening, only for the foreign-funded enterprises to create more market share. The key technology is not a breakthrough, really want to reach one hundred billion goal, I believe, still open to question.