2013 Development Situation of Construction Machinery Industry

The macroeconomic outlook will moderately recover. Prior to January 8, Lin Yifu, chief economist of the World Bank, stated at the "China Economic Outlook 2013" forum in New York that in 2013, China's economic growth rate will be between 8% and 8.5%, slightly faster. In 2012. And in the next 20 years, the Chinese economy will still have the potential for rapid growth.

The policy will continue to coordinate the "troika" relationship. Some analysts pointed out that macroeconomic policies will be devoted to enhancing the basic role of consumption in economic growth. A new round of promotional fee policies is expected to be introduced, and support for investment will be increased through the improvement of structural tax cut policies. Under the influence of policies, investment and consumption will increase the driving force for the economy, and the overall operating environment of producers will improve. In addition, the international environment facing the economy this year is still complex and volatile, and there is no obvious improvement in external demand, but it will be better than 2012. It is expected that the Central Bank will maintain the stability of the RMB exchange rate and continue the two-way volatility situation, providing a good exchange rate environment for foreign trade.

The fundamentals of good macroeconomics will effectively promote the development of various industries, and the construction machinery industry will also benefit from the stable and favorable macroeconomic situation. Under the background of improving investment in fixed assets and recovery of downstream industries, it will be more conducive to the transformation and upgrading of the construction machinery industry.

Urbanization Further expansion of urbanization will be the engine for the next step in the development of the Chinese economy. With the advancement of urbanization, the continued release of 40 trillion investment, the rebound of infrastructure and property investment, and the acceleration of government infrastructure construction in the western region, development projects including transportation, water conservancy, urban construction, and resource development are in full swing. , Providing a favorable market environment for the sale of basic construction machinery.

The various types of infrastructure investment that will develop around the urbanization layout will also become an important force for the economic recovery in 2013. Whether it is building roads and bridges, building hospitals and building hospitals, basic facilities such as “water, electricity, gas, postal service, internet, credit, and silver”, or building residential buildings, it will also bring in hundreds of industries in dozens of industries. Departmental linkage benefits, and this will also bring lasting momentum to the development of construction machinery.

Infrastructure investment such as railways steadily rebounded. Wang Mengshu, an academician of the Chinese Academy of Engineering, said that railway infrastructure investment will remain high in 2013. Most industry experts stated that the investment in railway infrastructure in 2013 was definitely over 600 billion yuan, and the initial plan was around 630 billion yuan. Urban rail transit will also flourish. In 2012, the National Development and Reform Commission has approved 34 rail transit development plans for each city.

Railway infrastructure investment has increased substantially. On the one hand, it has achieved the set goals in accordance with the relevant plans, and on the other, it has also been due to increasing construction costs. “The high-speed railways need to be repaired, the coal lines must be repaired, and provincial capitals must be pulled through. According to an analysis, this year's new construction projects will surely be more than last year. The start of infrastructure projects such as railways will certainly drive excavators, bulldozers, and cranes. , concrete machinery and other related species.

Rigid demand in the property market continues unabated With regard to the trend of the real estate industry in 2013, we believe that the overall situation is still relatively optimistic and that mild growth is expected to continue throughout the year, but the overall industry is hard to reverse. With the continuous improvement of the macroeconomic environment at home and abroad, as well as the promotion of urbanization and other aspects of the central government, there will be a certain degree of positive effect on the real estate industry.

With the continued improvement of the macroeconomic environment in the later period and the stabilization of the policies, it will create favorable conditions for the continuous rise of the property market. It is expected that the sales data of the real estate industry will maintain a steady growth in 2013. Under the premise of stable growth in sales, real estate investment will maintain a stable upward trend, and will accelerate the pace of development and construction.

Going out is still in a period of strategic opportunities In 2012, China's construction machinery companies “joined the sea collectively” and became a landmark event on the road to internationalization of Chinese companies. In 2013, upgrading technology and brand, or broadening product lines, or winning overseas markets, most Chinese construction machinery companies will have a more stable pace.

Some experts have stated that the “collectively going to sea” of Chinese construction machinery companies represents a new trend for Chinese companies to go global: from targeting physical assets such as energy resources to focusing on intangible assets such as brands, technology, and channels, in order to promote China. The transformation and upgrading of the manufacturing industry. The economic development in Latin America, Africa, Southeast Asia, Central Asia, South Asia and other regions is still in a rapidly rising path, and infrastructure needs to be further improved, which is of positive significance for the Chinese construction machinery industry going global.

Four Potential Unfavorable Factors of Construction Machinery in China in 2013

Overcapacity vicious competition There is a problem of overcapacity in China's construction machinery industry. Take loaders and excavators as examples. In the domestic market in 2012, the number of various types of loader manufacturers exceeded 50, and 28 major enterprises controlled more than 90%. In terms of market share, there are about 40 excavator manufacturers, 23 major companies have controlled more than 80% of the market share, and two leading product manufacturers have experienced a serious surplus.

In terms of exports, most small and medium-sized enterprises of construction machinery in China adopt a low-cost, low-price, and low-grade competition model in their exports, which will easily aggravate international trade disputes and make China more and more a target of trade protectionism and anti-dumping risks. .

On the evening of January 9, Sany Heavy Industry issued an announcement on the company's articles of incorporation, in which the column concerning company registration was changed to Sany Industrial Park, No. 8 Beiqing Road, Huilongguan Town, Changping District, Beijing. This means that the relocation of Sany Heavy Industry to Beijing finally came to an end. And this was in tandem with Sanlian and Zhonglian in November 2012. Both sides are closely related to the intense competition in the market and public opinion. The two parties are stigmatizing and attacking each other. The construction machinery industry is facing a crisis of collective confidence.

Accounts receivable surged in capital pressure The overall macroeconomic growth slowed down, and downstream demand was sluggish. In order to increase market share, major domestic machinery manufacturers launched aggressive strategies for increasing installment payments and credit sales. As a result, the current winter in the construction machinery industry is far from passing, and market demand remains weak. In the case of a decrease in revenue and a drop in net profit of construction machinery enterprises, receivables rose but did not drop, and they still maintained significant growth.

Sany Heavy Industry, Zoomlion, Xugong Machinery, Liugong, Shantui, Xiagong and Shanhe are listed companies in the construction machinery industry. The data for the third quarter of 2012 showed that the overall increase in accounts receivable was still strong. The fierce battle is raging, and industry risks are continuously accumulating.

Under the credit sales model, the reduction in the number of downstream projects led to an increase in the overdue rate of user repayment, corporate receivables continued to rise, the pressure on funds of various companies increased significantly, bonds payable and long-term borrowings increased significantly, and financial expenses also rose significantly.