The excavation machinery industry is likely to grow steadily in the next few years

Industry insiders said that innovation is the inexhaustible driving force for the development of my country's construction machinery industry. It is not only the only way to jump out of the cycle and climb the peak, but also the only way to develop from a market follower to a market leader. With the high development of 5G communication, big data, cloud computing, artificial intelligence and other technologies, it is highly integrated with various types of construction machinery and equipment, which will inevitably generate new value creation forces.

The excavator industry goes through the cycle

As soon as the excavator rang, the gold was ten thousand taels. If the construction machinery industry is the "wind vane" of macroeconomic development, then the excavator, the "jewel in the crown of construction machinery", can more intuitively reflect the heat of investment and the temperature of economic development. Since stabilizing and picking up in 2016, the high growth of the construction machinery industry has continued for 5 years, and this year's performance is particularly bright. From January to November, the sales volume of China's excavator market exceeded 296,000 units, a year-on-year increase of 37.4%, far exceeding the sales volume of last year and hitting a record high.

Wu Peiguo, Secretary-General of China Construction Machinery Industry Association, said: "Since March this year, the domestic market has continuously refreshed historical sales records for the same period in a single month, and the market recovery has far exceeded industry expectations. The continuous growth of the market for many years has exceeded expectations, which is a product update. It is stimulated by the superposition of cycles and inventory cycles. The construction machinery industry represented by excavators has passed through the bull-bear cycle and has become an important part of the economic engine during the epidemic.”

Keep upright and innovate again

At the moment when the construction machinery industry is prosperous, there are also many people in the industry who made calm voices and caused the participants to think deeply.

Li Hongbao, executive vice president and secretary general of the Excavation Machinery Branch of China Construction Machinery Industry Association, said: "When any industry is moving up, opportunities and risks coexist, and enterprises need to remain calm and rational. The construction machinery market is prosperous, the sales volume has increased, and the stock market has risen. When everything is good, it is also the time when risks are accumulating. According to the investigation of the association, the production capacity of China's excavators has reached about 600,000 units, far exceeding the market demand. The rapid expansion of the industry must attract enough attention from the industry, and enterprises must remain calm and rational, not blindly expand the scale of production capacity, and must not resort to price wars, otherwise they will run wild on the road of death.”

He Qinghua introduced the industry cycle situation: "We make statistics on historical data. Excavators are fixed investment, long-term depreciation equipment, and have certain cycle characteristics. They experience a short cycle every 3 to 4 years, and a medium cycle every 10 years. There is a long cycle every 20 years. The excavator industry experienced a cliff-like decline in 2012, so the risk control of enterprises cannot be relaxed for a moment.”

He Qinghua also said: "In 1999, in the list of the world's top 50 construction machinery companies, there was only one company in China, XCMG. Today, there are 12 companies on the list, and only 4 in Changsha. Chinese construction machinery manufacturers have grown from The followers of the international market have become one of the leaders of the international market. Every time they experience a bull-bear cycle, Chinese construction machinery manufacturers will become stronger, and I believe this time will be no exception. At present, 5G communication, big data The high development of technologies such as cloud computing, artificial intelligence, and various types of construction machinery and equipment will inevitably generate new value-creating forces."

He Qinghua's point of view was approved by the participants. Long Hui, chairman of Jiangsu Lihao Construction Machinery Co., Ltd., told the "Securities Daily" reporter: "After the market downturn in 2012, many enterprises have transformed, upgraded, merged and reorganized, forming a diversified and comprehensive With the attempts and explorations in many fields, a group of representative construction machinery has been formed. In 2016, the market entered a growth market, leading enterprises quickly occupied the market with all-round advantages, and the market concentration increased significantly. In the future, the head of construction machinery Enterprises focus on the mainstream market, small and medium-sized enterprises focus on subdivided fields, and differentiated competition will make the industry healthier. Artificial replacement and the international circulation of new and old equipment will be the outlet for construction machinery sales to hit a new high in the next decade.”