Decline in production and sales decline in the machinery industry stabilized

In recent years, the global economy has declined and the Chinese economy is in an adjustment phase. Affected by this, the development speed of the world's construction machinery industry has also declined. Especially since the first quarter of 2011, the construction machinery industry in the world has seen a declining trend. Affected by this, in 2012, the world’s 50 leading manufacturers of construction machinery, their sales increased slightly compared to the previous year, but the growth rate declined significantly. The profit of 50 companies was 21.075 billion U.S. dollars, and the operating profit margin was 10.55%, both falling from the previous year.

Su Zimeng said that although the production and sales of the machinery industry have declined, the decline has stabilized. In general, for the Chinese construction machinery industry, the deceleration of the industry development is a sign of a rational return. Chinese enterprises should actively adjust the structure and transfer methods during this period, strive to improve product quality and brand value, lay a solid foundation for development, and tackle high-end markets. In particular, breakthroughs have been made in accelerating technological innovation, strengthening product innovation, brand innovation, industrial organization innovation, and business model innovation.

The company shrinks its business to "break the wrist and survive"

In the global market, although the recovery of the US and European markets is weak, compared with other countries, European and American companies have successfully completed a counterattack on a global scale, relying on their accumulated experience and their long-standing strength.

It is understood that in the world's top 50 companies, sales growth of 26 companies, 19 of which Europe and the United States, 24 companies sales decline, including 18 Asian companies.

It is worth noting that the biggest increase in profits was for Terex, which had previously braved the "broken wrist" and stripped its mining equipment; its profit rose 329.59%.

According to Guo Xuehong, vice president of Zoomlion, Zoomlion’s performance declined by 47.9% year-on-year from the quarterly report. The main reason is that since the third quarter of last year, Zoomlion began to shrink its business and added contraction in the fourth quarter. In the first quarter of this year, the scale of this contraction was further expanded.

Guo Xuehong stated that Zoomlion reflected on the rapid growth model of previous years and began to recognize that radical development methods and means are not conducive to the continued development of industries and enterprises.

"The Zoomlion gave up its pursuit of speed," said Guo Xuehong.

At the same time, Guo Xuehong emphasized that as a listed company, the speed of giving up temporary development is to pursue a longer-term development. Starting from the second quarter of this year, Zoomlion’s sales scale will return to normal levels.

According to Su Zimeng, in April and May of this year, the scale of sales of various enterprises in the construction machinery industry in China has shown signs of steady recovery.

Disparities in construction machinery companies increase the low performance of Chinese companies

Judging from the “Top 50 List of Global Construction Machinery Manufacturers in 2013”, the differentiation among global construction machinery companies is more obvious than ever. Caterpillar, ranked No. 1, has more than double the sales of Komatsu ranked No. 2; Komatsu, ranked No. 2, is also more than double the sales of Volvo Construction Equipment ranked No. 3.

For Chinese companies that have been the “growth star” on the list of the top 50 construction machinery manufacturers in the world for the past years, their performance has been a huge gap before. Regardless of the growth ability or the ranking, the Chinese legion has experienced a large-scale decline this time.

Of the 11 Chinese companies listed on this list, apart from the 5th and 6th ranked leaders, Xugong Group and Zoomlion continued to maintain growth. Among the remaining 9 companies, only the newly listed Northern Heavy Vehicle Co., Ltd., To achieve growth; other companies, sales are falling without exception, the order is also down the line.

According to Jun Jun, president of the China Construction Machinery Industry Association, Chinese companies have not been able to achieve the same result due to the sluggish local market. Natural Chinese companies that use this as the main market are inevitably affected. At the same time, companies that previously considered China as a “second local” and “largest overseas market”, such as Komatsu, Hitachi Construction Machinery, and Hyundai Heavy Industries, have also been deeply affected.

Junjun said that the Chinese market is no longer the absolute and only driver of growth for both domestic and foreign players. A more balanced global layout and more regional development that can resist risks will become a must for enterprises. An exam question.

He believes that what Chinese companies currently lack are the ultimate competitiveness. For Chinese companies, although they have experienced rapid growth for several years and have become large companies that have become intimidated by the international giants in terms of scale, they are increasingly close to global leaders in their business systems and layout. In the past, the local enterprise groups are still at the stage of “laying a development track,” “growing the development path,” and “exploring the development model.”