The hottest construction machinery has a serious o

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On April 1st, 2016, China's construction machinery industry will usher in the implementation of a mandatory policy. According to the announcement on the implementation of the third phase national emission standard for diesel engines for non road mobile machinery issued by the Ministry of environmental protection, from this day on, all non road mobile machinery manufactured, imported and sold except agricultural machinery shall not be equipped with diesel engines that do not meet the requirements of the third phase of the non road standard (hereinafter referred to as "the third national standard")

according to the industry, after the implementation of the above policies, except for agricultural machinery, all construction machinery manufacturing and sales enterprises are not allowed to sell equipment that fails to meet the "three national standards". This mandatory environmental protection requirement means higher pollution emission control standards and higher production costs for the construction machinery industry. It also means that a number of production enterprises that fail to meet this requirement will be forced out of the market

different from other industries' resistance to high environmental protection standards, the construction machinery industry feels that this policy is a little late, and even more stringent elimination standards should be introduced

during the two sessions this year, Yanping, chairman of Yuchai group, proposed that construction machinery should be forcibly licensed and scrapped. Since 2013, China Construction Machinery Industry Association has repeatedly appealed to relevant departments for the introduction of relevant management measures, so as to timely eliminate the huge old and backward equipment and clear the obstacles for the overall upgrading of the industry

behind the initiative to increase the elimination, in addition to the consideration of environmental protection, the greater reason is the serious overcapacity and low utilization rate in China's construction machinery industry

machinery is required for any project. As an important part of the equipment industry, the construction machinery industry plays an important role in the national economic construction, including excavators, bulldozers, loaders and many other varieties. Construction, water conservancy, electric power, roads, mines, ports, national defense and other engineering fields all rely on a wide variety of engineering machinery and equipment

according to the data of China Construction Machinery Industry Association, by the end of 2015, there were 7million sets of equipment in the domestic construction machinery market, and the market has become saturated. In 2015, the market sales of the whole industry dropped by more than 40% compared with the previous year. Among them, the sub categories such as loaders and bulldozers even dropped by more than 50%, which is the fourth consecutive year of decline since 2012 and the most serious one. In 2015, the total sales volume of 11 types of construction machinery products in the whole industry, including excavators and loaders, was about 492000 units, a decline of more than 70% compared with the historical peak in 2011

corresponds to a set of data closely related to the demand for construction machinery. In 2015, the growth rate of the whole society's fixed asset investment dropped by 3.1 percentage points over the previous year; The growth rate of national infrastructure investment dropped by 4.3 percentage points over the previous year; The growth rate of investment in real estate development nationwide dropped by 7.1 percentage points over the previous year

Qijun, President of China Construction Machinery Industry Association, told the economic observer that up to 7million sets of equipment in use are unprecedented not only in China, but also in any regional market in the world. On the one hand, the current operating rate of engineering construction projects is insufficient. On the other hand, the number of engineering equipment has been accumulating over the past few years, resulting in a continuous decline in sales. The continuous contraction of demand space is the most painful part of China's construction machinery industry

as an area almost entirely dependent on investment, the construction machinery industry shows that China's economy is gradually leaving the industrial pain under the investment driven transformation scenario. This pain seems less obvious than steel and coal, but it should not be underestimated

red light

in November 2015, zhaochenggang, director of Sichuan Fire Research Institute of the Ministry of public security, the chief editor of this standard, introduced that an excavator agent in Shijiazhuang, Hebei Province, had an amazing "backflow" phenomenon in a sales month: after a month of hard sales, the number of excavators on hand did not fall but rose

why does it go up instead of down? It turned out that although the agent sold 15 new machines within one month, the excavators previously sold were constantly "dragged back" due to the subsequent repayment difficulties of users, and finally 20 sold equipment were pulled back in this month

due to the high value of a single construction machine, users usually obtain the equipment by means of down payment. Hebei is the largest province of iron and steel production in China, and also a province with large iron ore resources. 2015 was a difficult year for mining equipment users. Due to insufficient equipment operating rate, construction machinery, including excavators and loaders, were idle for most of the time, and some users had difficulties in subsequent repayment of equipment

not only Hebei. Liu, an individual user who lives in Xuzhou, Jiangsu Province, bought back an excavator with a down payment of 200000 yuan in october2015. Within six months, due to insufficient quantities, he earned very little. The monthly installment payment of more than 20000 yuan, the salary expenditure of the driver, and the difficulty in collecting the project all gave him a headache. Liu told the economic observer that the installment payment machine is equipped with a satellite positioning system. If it fails to repay for more than three months, the equipment will be shut down remotely. After the manufacturer's door-to-door payment is invalid, the equipment will be confiscated. Now, Liu, who is tired of capital turnover, is ready to be towed away. He has lost about 200000 yuan in half a year

the situation of Mr. Liu will be staged in almost every construction machinery agent. In an interview with the economic observer, the agent in Shijiazhuang told the author that nowadays, it is common in the construction machinery industry to be dragged back to the equipment due to failure to repay on time

the agents who dragged the equipment back are also suffering. In the past twoorthree years, the collection of payment for goods has become the top priority of the agency's work. However, the "car search and trailer" work for overdue and missing customers is quite difficult. They often make a fool of themselves if they are not careful. They are involved in a lawsuit and lose their wives and soldiers

an earthmoving equipment agent in Nanning, Guangxi, calculated an account for the author: if a medium-sized excavator is eventually towed back to be used as a second-hand car because the user has not paid the payment, the agent will lose about 10000 yuan. For the user, the car payment already paid in the early stage will be paid, and the project at hand will not be able to continue, so the economic losses will be even heavier

due to a large number of trailers, in the first quarter of 2016, many agents are still selling the equipment towed back twoorthree years ago, thus forming a huge used machine market. A large number of old machines flow, which in turn affects the sales of new machines

at present, the proportion of down payment for small and medium-sized excavators is generally around 20%. In order to stimulate sales, agents tend to make advances, which includes not only a certain proportion of down payment for users, but also advances in case of subsequent repayment difficulties. When the market is not good, not only the sales volume is poor, but a large number of advance payments make the cash flow urgent. The agents are struggling to support in this vicious circle. These people who had tasted the sweets when the market was booming fourorfive years ago are now deeply "trapped"

loss of surplus

according to the statistics of the excavation machinery branch of China Construction Machinery Industry Association, the 10-year ownership of excavators in the industry (the number of equipment sold and in use within 10 years) was 230000 at the end of 2005. However, by the end of 2015, the 10-year ownership of excavators in the industry had reached 1317000. In the past 10 years, the population has increased nearly 5 times

according to the data released by off highwayresearch in 2015, the production capacity of Chinese excavators was about 538000 units (non actual output), while in 2015, the market sales of Chinese excavators was only 59000 units. The production capacity of 538000 units not only far exceeded the demand of the local market, but also greatly exceeded the demand of the global market. The pressure of capacity reduction of construction machinery has thus reached an unprecedented level

excavator is the most widely used equipment in engineering construction, and it is also the epitome of a country's infrastructure construction. From 2002 to 2012, China's construction machinery industry, represented by excavators, was singing all the way. Especially after 2008, when the 4trillion yuan was thrown, the market entered a stage of explosive growth, and the production capacity and sales volume of the whole industry achieved a win-win situation. In twoorthree years, almost all of the segmented products accompanied by the rapid development of real estate and infrastructure construction, and the construction machinery enterprises collectively fell into a growth carnival

taking the three leading enterprises in the industry as an example, from 2008 to 2010, the revenue of XCMG, Zoomlion and sany increased from 22billion yuan, 13.5 billion yuan and 16billion yuan to 34.4 billion yuan, 33.2 billion yuan and 33.1 billion yuan

from 2012, the situation began to reverse, the industry suddenly entered the downward channel, and fell to the bottom in 2015. This is a miserable year for China Construction machinery. In that year, the total sales volume of 11 types of construction machinery products in the whole industry, including excavators and loaders, was about 492000 units, and the market sales volume fell by 70% compared with the historical peak in 2011

at the same time, the growth rate of fixed asset investment, infrastructure investment and real estate investment across the country, which are closely related to the construction machinery industry, all fell. In the view of industry insiders, the successive decline of construction machinery sales is not only closely related to the above factors, but also involves another key factor - the huge market holding. At present, there are 7million construction machinery and equipment in 18 categories of products, which has made China's construction machinery market close to saturation

in addition, in order to pursue greater sales and higher economies of scale, the enterprise has launched a more radical credit sales strategy, resulting in serious overdraft at the entire demand side, and the operation of the enterprise has become more difficult due to the problem of capital return

Qijun, President of China Construction Machinery Industry Association, said, "China has carried out aggressive sales for four to five years, which has broken the ecological balance of the construction machinery market. In contrast, in mature foreign markets, although the construction machinery will also adopt the credit sales model, they have a sound credit control system and more standardized legal procedures. China's business environment is different. In this case, aggressive credit sales and excessive use of financial leverage will inevitably make the whole industry pay a painful price." Price. "

the huge market stock, the declining utilization rate and the frequent occurrence of payment arrears and even default events make this once prosperous industry start to consider using the government's power to reduce the production capacity and inventory of the construction machinery industry

but they found that there were many difficulties. At present, there is still a lack of policy guarantee and support for the scrapping of old equipment

as early as October, 2014, the Ministry of industry and information technology issued the notice on the formulation of the target plan for eliminating backward and excess capacity in key industries during the 13th Five Year Plan period, which requires accelerating the withdrawal of backward capacity that fails to meet environmental protection, energy consumption and other standards, and promoting structural adjustment. This target plan involves 14 key industries, including iron making, steel making, coke, ferroalloy, calcium carbide, electrolytic aluminum, copper smelting, lead smelting, cement and paper making, Has faced huge challenges

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