When China's Concrete Machinery Celebrates the Dream of a Powerful Nation

On August 23, 2010, the sales revenue of Zoomlion Concrete Machinery Company exceeded 10 billion yuan. This good news not only cheered the group, but also became a microcosm of the booming situation in China's concrete machinery industry.

2010 was the hottest year for construction machinery in China, and the concrete machinery industry was the most popular branch of the industry. Information from the China Construction Machinery Industry Association concrete machinery branch shows that in the first half of 2010, sales of concrete machinery reached 50.6 billion yuan, and the task for the whole year of 2009 was completed in half a year, an increase of 130% over the same period of last year, and it dominated the construction machinery industry. In the second half of 2010, although the pace of development has been adjusted, it has continued to grow rapidly and annual sales have exceeded 90 billion yuan.

The growth situation extends the market continues to be optimistic Recently, Sheng Chunfang of the China Construction Machinery Industry Association concrete machinery branch said that in 2010 China's concrete machinery sales exceeded 90 billion yuan, and this development trend is expected to be better extended in 2011.

Industry insiders pointed out that the prospects for concrete machinery are promising, mainly due to the government’s investment in infrastructure, mainly based on the popularity of commercial concrete for passenger dedicated lines and second- and third-tier cities, and the increase in the construction area of ​​the real estate industry. Looking at a longer period of time, the demand for the concrete machinery industry is still affected by the increase in the urbanization rate and the change in construction methods.

Due to the rapid advancement of our country’s economic construction and many infrastructure projects, the ubiquity of concrete projects provides a vast market for concrete machinery. Many companies, especially listed companies with economic strength, are looking for a broadening field for the company. It is easy to think of the development of concrete machinery that is booming. They are either mergers and acquisitions, or they receive high-paying and preferential treatment to absorb technology and talents. The competitive situation has long since formed, but it will be more severe and embarrassing in the future.

According to the development trend of concrete machinery in 2010, during the “Twelfth Five-Year Plan” period, concrete machinery will become the sub-industry for the advancement of leading construction machinery. The accelerated development of the industry naturally attracts many companies to enter the field, and the market expansion based on mergers and acquisitions is in full swing. Firstly, it expands production capacity, then establishes production bases in different regions, and effectively reduces logistics costs in close proximity to the market. A nationwide production and sales system was established to further expand.

Competitive competition in enterprises has become increasingly fierce. In the pace of expansion, the Zoomlion and Sany Heavy Industry have expanded particularly prominently. The market is in an accelerated state, and the competition is accelerating, and it has become increasingly fierce. Shantui Group, a bulldozer business, has entered the concrete machinery industry and is expected to become a new profit growth point this year. After the Chutian new factory jointly invested by Shantui, Japan Nippon Engineering and Wuhan Zhongnan Electromechanical Co., Ltd. is put into operation, it can annually produce 3,000 concrete mixer trucks of various types, 1,700 boom-type pump trucks, and 1,000 pumps. The production capacity of 200 concrete mixing stations can realize an operating income of 10 billion yuan. Last year, concrete machinery was mainly based on concrete mixer trucks. It is estimated that the income will reach 3.4 billion yuan. With the gradual production of the Chutian base, it is expected that this year's income will reach 2 billion yuan, becoming a new profit growth point for Shantui.

Guangxi Liugong Group Holdings Shanghai Hongdeli Heavy Industry Co., Ltd. also indicates that the old state-owned Liugong began to enter the concrete machinery industry. Due to the hot sales in the market last year, the profits of the industry have also increased significantly. With the improvement of the market, competition has also increased. Many companies that are not in the construction machinery industry have also entered the industry to share benefits. Therefore, depending on a single product line, it may not be possible to obtain greater profits. The expansion of product lines is also an initiative for companies to enhance their own strength. Multi-product lines and multi-angle development are more conducive to the survival of enterprises in the market.

China United and Sany have "dominated" the concrete machinery industry for many years and have consistently maintained a relatively high market share. They are called industry players. China's construction machinery industry giants Zoomlion and Sany occupy a large market share in the concrete machinery industry. Zhonglian has become the industry leader with its strong economic strength and technical strength; and Sany is enjoying a strong momentum of development. The industry is in the forefront. The entrance of Liugong will compete with Zoomlion and Sanming. It goes without saying that the competition in the concrete machinery market is very fierce.

Experts pointed out that the continuous expansion of the concrete machinery industry, market competition has become an inevitable trend, although the current market structure has initially appeared, but all companies still have great room for development and opportunities. In particular, with the gradual weakening of the financial crisis, the recovery of the export market, coupled with the acceleration of the pace of urbanization in China, the impact of various municipal and affordable housing construction investments, concrete machinery will still have good expectations in the next five to ten years. However, experts also stressed that China's concrete machinery is already a world leader in terms of manufacturing and use, and it has reached internationally advanced levels in terms of technology and performance, but it is still China in terms of product reliability, energy saving, and environmental protection. Become the bottleneck of the world's strongest concrete machinery country.

Although the development of concrete machinery in China is still at the leading position in the world, the transformation from big to strong still requires more efforts. The current trend of overseas expansion has two directions: to use the top technology from overseas to make up for the technical deficiencies of Chinese companies, or to select regions with good market space in order to expand overseas market share. No matter what kind of selection method will inevitably involve related parts and components, therefore, competent companies should do more to break the bottleneck, not only can generate considerable economic value, but also can enhance China's construction machinery international Competitiveness.

Sheng Chunfang pointed out that hydraulic equipment, electrical control, engine and other construction machinery ancillary products have become the bottleneck of the development of China's construction machinery. In order to change this situation, some powerful companies do not blindly focus on those host products that now appear to be very prosperous in expanding their product lines, because the market for these products is very fast with the increase of production companies and production capacity. Will be saturated. Entrepreneurs with vision and vision should do something to eliminate bottlenecks. This can not only reduce costs and increase profits for production, but also make a contribution to ensuring the sound development of China's construction machinery.

Sheng Chunfang suggested that in the construction machinery support, not necessarily what products should be selected international famous brands, should be practical and realistic analysis and research to meet the requirements of construction principles. Excessive allocation and wealthy functions not only increase product costs, but also limit the development of domestic accessory manufacturing companies. In the development of concrete machinery, similar problems have also been encountered. For example, concrete mixer trucks have been used by some production companies in the past. The production of mixer trucks is now completely reversed. The use of imported chassis is a rare thing. There is still a gap between our domestic heavy trucks and foreign ones, but its price/performance ratio is acceptable to the Chinese. In the support of the concrete boom type pump truck, it is also hoped that the domestic chassis can be used like a mixer truck because the function of the pump truck chassis is mainly the work site transfer, and the domestic chassis can be competent. Now the chassis used by the car cranes are all produced by the company itself. The operating conditions and operation process of the pump trucks are very similar to those of the car cranes. The self-made chassis is also worth trying.

At present, China's concrete machinery is already a world leader in terms of its manufacture and use. There are also quite a number of world-leading technologies and capabilities, but we cannot yet call it the world's largest producer of concrete machinery. For example, our products still have certain gaps in terms of reliability, energy saving, and environmental protection compared with foreign brands, and there are also large gaps in intelligence and informationization. We must not be arrogant, but should continue our efforts to make our contribution in the transition from the big machinery of concrete machinery to the power of the world's concrete machinery.

Although Hunan Concrete Machinery Manufacturing Corporation, represented by Zoomlion and Sany Heavy Industry, has occupied more than 78% of the domestic market share, domestic brands still need to be improved in the development of concrete machinery and complete sets of equipment.