China's machinery industry is facing transformation and upgrading

In 2014, China's economic growth slowed down has become the consensus of all walks of life, in the global economic slow recovery and international competition in the fierce background, China's machinery industry into overcapacity, oversupply problem. China's construction machinery industry will be transformed and upgraded, breaking through the technological monopoly in developed countries, how to expand the market, and establish comparative advantages in the competition with emerging economies, has become an important issue in the development of the relationship industry.

No innovation is death

Letter of the general manager of securities wealth management department Wu Xuan said: "the construction machinery industry is a strong cyclical industry, the development of the situation and it is closely related to the macroeconomic growth continued to slow down, the future is a high probability event, it must have a long and painful transition."

Since 2011, China's economic growth mode has turned into the pursuit of quality benefits, energy saving, environmental protection and intensive and efficient. This means that the construction machinery industry, driven by fixed asset investment, will face the environment of insufficient demand, overcapacity and intensified competition for a long time. In the 2013 global construction machinery industry conference and the 50 summit, Wang Min, chairman of Xugong Group, who is the leader of domestic construction machinery industry, once threw his medium speed psychology to the media".

Wang Min said, with the development of the industry changes in speed, should be from the high-speed growth period of high-speed mentality adjusted to medium speed mentality. He said, although the world economy is still unstable, relatively low, but the development is still the main theme, the opportunity is still a lot. Especially for Chinese enterprises, it has changed from an expansion to a stage of transformation and upgrading.

In the list of the top 2013 global construction machinery manufacturers, 11 enterprises in China are listed, 8 in the United States, 11 in Japan, 5 in Germany, 3 in Sweden, 2 in Korea, and 2 in Finland, 50 in china. Among the top 15 enterprises, 3 Chinese enterprises XCMG, ZOOMLION and Sany ranked the fifth, the sixth and the tenth respectively. However, in these leading enterprises frequently top international manufacturing industry rankings, generous overseas mergers and acquisitions, investment to set up factories at the same time, the key parts of engineering machinery China production is heavily dependent on imports, long-term heteronomy.

For example, engineering machinery and automotive products, not only of the host (vehicle) brand premium products is much lower than international brands, domestic brands in the key parts of hydraulic parts, electronic products also rely heavily on imports, the country during the year NPC and CPPCC, National People's Congress, Chery heavy industries chairman Wang Jinfu said. Wang Min said, after decades of efforts and accumulation, China's construction machinery industry to solve the problem of 90%, but the most critical thing is to overcome the last 10%. "This is like climbing the last hundred meters of Mount Qomolangma, need to gather more power, with more financial resources, wisdom and talent, the last hundreds of meters and 10% of the problem solved. If this problem is not solved, it will always be contained." If we want to survive, live better, we must innovate, not innovation is equal to death.

Urgent transformation and upgrading

"Although the economic slowdown makes the industry very difficult, but this is not a bad thing for construction machinery, we can just take this calm down, the future development ideas, further squeeze water, adjust the structure, innovation." Wang Min said that the slowdown in the development of the industry, in fact, is the return of rational performance. The spring of construction machinery industry is always in existence, so I am always optimistic about XCMG's future."

Just shortly after the end of the exhibition in Las Vegas, Chinese Construction Machinery Industry Association Secretary General Su Zimeng visited the Xugong Group said: "the United States of Las Vegas international construction machinery exhibition, represented by Xugong China local engineering machinery enterprises not only bring rich and high-quality products in the exhibition building and layout also have a unique style. Fully demonstrates the development of engineering machinery manufacturing strength China, believe that the future of overseas market will be strong growth in the development of construction machinery industry Chinese."

This year, the government work report also said: "open and reform accompanied by the birth and mutual promotion.". To build a new system of open economy, promote a new round of opening in the international market, a vast expanse of water in fighting the storm, forced deep-seated reform and structural adjustment, to accelerate the development of new international competitive advantage."

So, how to solve the structural problems existing in China's construction machinery industry? The National People's Congress, ZOOMLION chairman Zhan said: "on the one hand, the ability of small and medium-sized enterprises supporting the improvement, focusing on cultivating a number of strong, refined, small and medium-sized enterprises; on the other hand to key parts of the development and industrialization of effective investment, to fill the gaps in the industry chain."

Representatives of the NPC, Chery heavy industry general manager Wang Jinfu said that policy environment, technology, talent is the three essential elements in the transformation and upgrading. The state should introduce a series of policies to encourage enterprises to innovate, encourage enterprises to take the lead, joint research institutions, colleges and universities to form a new type of innovation subjects. In addition, the most important thing for innovation is talents, and more talent reserves and development should be done in the pillar industries that affect the national security.

Zhan Chunxin also suggested that the state formulate preferential policies to encourage and support the appropriate enterprises, research institutes, universities set up cross industry key, generic technology research and development platform and alliance, from horizontal to open the industrial chain, accelerate the transformation and upgrading of construction machinery industry.

In this regard, Wu Xuan believes that the three party building platform, whether from the national strategic height, enterprises reduce costs, or enhance the economic strength of scientific research, it is worth promoting and win-win. If only relying on state subsidies for enterprises related technology research and development, the cost will be very high, the effect is not satisfied.

However, Wu stressed that the idea is good, but can not continue to cooperate, is the key to determine whether the future success. He believes that the relevant government departments can promote from the following three points: first, gradually reduce the purchase of parts purchased; two, the national brand requires new technology compulsory pilot; three is to introduce key technologies through Sino foreign joint ventures to achieve mutually beneficial cooperation.

In order to deal with the problem of slow development of machinery industry, government and enterprises are required to. Enterprises should strengthen the ability of technological innovation, and the government should give policy support. Only in this way can we speed up the transformation and upgrading of the machinery industry.