Excavator loader sales decline double, enterprise reflection and seek development      

Excavators have been regarded as "crown jewels of construction machinery, industry barometer", and from this year's sales, the industry seems to have been rainy weather.

According to authoritative data statistics, 29 excavator manufacturers in China's construction machinery market in 2014 1~6 months, a total of 58056 crawler excavator sales, sales of wheeled excavators 840. Among them, more than 6 tons of excavators sold 43214 units, compared with the same period in 2013 fell by 12.3%; 6 tons (including 6 tons) excavators sold 14842 units, compared with the same period in 2013 fell by 3.6%, a slight decline.

From the crawler excavator data, the domestic brand Sany cumulative sales of 7967 units, the market share of 13.7%, continue to maintain sales of the first place. Caterpillar followed, the cumulative sales of 5854 units, the market share of 10.08%, which continues to be ranked first in foreign brands. Komatsu sold 5347 units in the first half of the year, with a market share of 9.21%, ranking the third place.

Sales decline of two types of aircraft

Market share, the first half of the year, more than 6 tons of excavator, the domestic brand share declined, down from 41.1% in 2013 to 38.6%, while the foreign brand market share from 58.9% in the same period of 2013 to 61.4%; 6 tons (including) excavator foreign brands market share of 56.7%, the domestic brand 43.2%, compared with the same period last year did not change.

Among them, in May, excavator sales of 8278 units, compared with 11810 units in the same period in 2013 fell by 30%, becoming one of the most serious month of decline. Excavator sales declines in the industry to pick up the hope of slowing, the whole industry will also encourage in on the road to recovery.

Loader, in May of this year, its sales volume of 15348 units, compared with April, a decline of 15%, expanded by 4 percentage points, reaching a year-on-year decline of 19%. 1~5 monthly sales of 78034 units, down 6%, the lowest level since 2013 February. Before May, the sales of loaders were really hard to satisfy, which made the people looking forward to the recovery of the industry floating a cloud.

From the first half of the construction machinery sales point of view, can effectively feel the construction machinery enterprise forward difficult. Although the state continues to promote railway construction, rail transportation, affordable housing construction, shantytowns and a series of micro stimulus policy, but due to the construction machinery market retains too much, the new machine sales in the industry is still sluggish.

Although the new investment increase and project construction in the second half will bring some opportunities for the construction machinery industry, but the whole industry is still facing severe challenges.

Low demand in peak season

According to the China Construction Machinery Industry Association statistics, in January 2014, China excavator total sales of 4533 units, down nearly 10%. In February, the excavator industry sales of 9410 units, an increase of 55.3%. According to Merrill Lynch report shows that mining machinery market sales in March decreased by 7.8%. In April, the excavator sales of the main excavator enterprises were 12478 units, down 2992 units. In May, all tonnage excavator product sales have declined, of which the middle dig (13~30 tons) is the most obvious, year-on-year decline of 37%.

In accordance with the rules of sales in previous years, after the Spring Festival in February should have begun to show signs of growth in demand, 3~5 gradually into the season, but this year, on the contrary, in the sales season month decreased, which also makes the expected recovery of the discount.

At present, the construction machinery industry is still full of inventory accumulation, high market holdings, vicious competition among enterprises, zero down payment, extended payment cycle and so on. And the enterprise itself accounts receivable too much, excess capacity will also limit the recovery of the industry. Plus some projects to suspend construction and so on, resulting in the first half of this year should be the construction machinery sales season in the fall season of production and sales, have not the busy season phenomenon. At present, many enterprises are eager for a fight to seek new profit space.

According to statistics, the real estate demand for construction machinery accounted for 55%, the railway infrastructure demand accounted for about 35%, the mining industry demand accounted for about 10%. In the first quarter of this year, fixed asset investment grew by 17.6% year on year, compared with last year's 19.6% year-on-year growth rate, there has been a certain degree of decline. Market demand is not high, but also lead to the industry is now part of the sales volume is not flourishing.

Deep plowing for profit

China Mining Machinery Engineering Machinery Industry Association branch secretary Li Hongbao said, to avoid vicious competition in the existing industrial level, the excavator industry obtain a new growth point, from innovation to the combination of short-term and long-term goals, so that China's excavator industry can avoid weaknesses, consolidate the existing advantages, and achieve better development.

The domestic market is not good, some enterprises have turned their attention to foreign countries, hoping that the overseas market can bring profits for enterprises. Excavator as an example, the high technology content of products, many domestic enterprises do not grasp the core technology, more is to rely on imitation of foreign product design and production, many of the key components is still dependent on imports.

In this way, many local brands of Chinese products are difficult to compete with overseas brands in terms of technology and performance. At the same time, previously has been considered the Chinese its biggest high quality and inexpensive products, the price advantage of domestic enterprises with the rising cost of employees, the local brands in the price competitiveness increasingly weak. So, although overseas markets have more opportunities, but enterprises also have their own hard to attract real money.

Experts believe that the value chain in the excavator industry, domestic manufacturers profit mainly concentrated in the assembly processing field, and the lack of development of value chain. Compared with international brands, the domestic excavator manufacturers are in an obvious disadvantage in each link of the value chain. For a long time, the core parts are mainly supplied by foreign manufacturers, which has become the biggest bottleneck for the domestic excavator enterprises unable to achieve large-scale development.

While paying attention to the overseas market, there are also many enterprises deep plowing the market, hoping to gain something in the after sales market. This is also in line with the famous Pareto rule (also known as the 28 law), that is, 80% of the profits of the enterprise comes from the repeated purchase of the 20% old customers.

With the development of the industry, its market concentration will also become higher and higher, many small enterprises because of low production capacity, technology will not pass, will eventually be eliminated market. While the strength of the enterprise in the market differentiation period, through the improvement of customer service service system, brand marketing construction, and strive for greater potential customers, win the opportunity for further growth of their own survival and development.

Since the beginning of 2014 to the two quarter, the domestic economic downturn, the slowdown in demand for domestic engineering machinery, the major companies in the stock market around the work of thinking, to keep abreast of customer needs, continuously build service brand as the starting point, to enhance the service capabilities, the cohesion of the people, improve the terminal customer loyalty to the brand, so that we can in a certain degree restore the excavator loader sales, for the development of industry after Pactrometer, move slow.