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The current construction machinery industry continues to be sluggish


"China's loader production capacity is about 420,000 units a year. Last year, global sales were 167,000 units. Even if we buy a Chinese-made loader, we still have about 250,000 surplus capacity." Director of Construction Machinery Consulting Co., Ltd. Manager Philip said at the Global Construction Machinery Technology Summit held here.
Philip said that the excavator market is facing a similar situation, even if the global excavators are supplied by China, but also the remaining 120,000 excess production capacity, "the next five years, the global demand for excavators may be less than 60,000 units, And the output of a factory in China exceeds this amount."
“In the future, half of China’s construction machinery companies will face bankruptcy or conversion.” According to Philip, the sales of global construction machinery market will be less than one-third of the peak time this year, and the production and sales volume will continue to decline in the next five years.
High inventory levels, cash flow difficulties, difficulties in recovery of accounts receivable, and severe overcapacity in production, China's construction machinery companies are facing unprecedented challenges.
“The current construction machinery industry continues to be sluggish. The output of the five major products that were counted from January to April this year all showed a year-on-year decline, with shovel transportation machinery down 29.18% year-on-year.” said Xue Yiping, executive vice president of the China Machinery Industry Federation. The downward pressure on the production and operation of mechanical enterprises is still relatively large. The weak market demand is unlikely to improve significantly in the short term. It is a long way to go for structural adjustment product upgrades.
“The study found that companies with relatively strong innovation capabilities in the industry will not be able to experience rapid declines; they will experience rapid declines in their ability to innovate.” Wang Guiqing, vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, believes that excess capacity is relative With competitive products and competitive companies, production capacity will not be surplus.
Although the international and domestic markets are declining, Chinese products are still gaining share in the international market due to their high quality and low price. According to data provided by Wang Guiqing, China's construction machinery exports increased by 53.8% in 2012, a decrease of 18.1% in 2013, and continued to decline year-on-year last year.
Although the volume of exports is declining, the share of construction machinery in overseas major markets has continued to rise. For example, the share of construction machinery imported from China from the United States increased from 10.08% in 2012 to 12.02%, and the market in Asia increased from 43% to 47%. %, the African market has grown from 12% to 15%.
Wang Guiqing hopes that the company will actively maintain its overseas distribution network, consolidate its achievements in overseas markets, strengthen technological innovation and product upgrades, and strive to win a turn for the better in the “Belt and Road” initiative.
“At present, Liugong’s exports account for one-third of its output. In the future, we must pay more attention to the international market.” Liu Guang, Chairman of the Board, Zeng Guangan said that the development of overseas markets has established confidence in Liugong’s development and the “One Belt and One Road” strategy is a project. The dawn of machinery manufacturers.

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