The construction machinery market has experienced rapid development of various risks or risks

In 2010, the international and domestic economic situation faced by the construction machinery industry was the most complicated one. Even so, the Chinese construction machinery market still attracted international attention with its rapid development. Under the guidance of a series of correct measures of the country, the economic operation of the industry has maintained a steady and rapid growth, and the major indicators of economic efficiency have been fully satisfactory. In 2010, the growth momentum of China's construction machinery enterprises was very strong. Sany Heavy Industry, Shandong Heavy Industry, XCMG Group, Zoomlion, and Liugong Group all expressed their desire to achieve sales revenue of more than RMB100 billion in the year ending in the “Twelfth Five-year Plan”. The cumulative sales of other 11 large group companies will reach 600 billion yuan.

2011 is the first year of the Twelfth Five-Year Plan period. Under the pressure from the country to strengthen macro-economic control and regulation of the real estate industry, the growth rate of construction machinery industry will drop significantly. Under the pressure of inflation, the terminal sales of the machinery industry will certainly be affected to a certain extent. However, these failed to stop the continued strength of the construction machinery market. The signing of the military order for the protection of housing and the new wave of investment in water conservancy construction have, to a large extent, boosted China’s construction machinery market. In view of the fact that major and medium-sized enterprises have all started to expand their production capacity and expand their market share in 2010, this has largely hidden potential risks for overcapacity in the construction machinery market in 2011 and beyond. The expansion of production capacity has greatly promoted the saturation of market demand for construction machinery, and the increasingly intense competition in the construction machinery market has accelerated the pace of capacity expansion. If this situation is not well improved, continuous circulation will inevitably cause excess capacity in the construction machinery market.

As far as the current development of China's construction machinery market is concerned, the development potential of excavators, cranes, and concrete machinery products is huge, and the market is also widely viewed. In terms of the excavator industry, Wuliangye, Rongan, Chery, Geely and other companies have all turned their heads and began to share the excavator market. Such a large-scale cross-industry transition, coupled with the uneven branding, product performance, and quality of construction machinery, will not only have a significant impact on the sales of the entire industry, but will also lead to a series of low-end excess capacity. The situation may even lead to unfair competition in the industry.

In addition, at the beginning of the year, with regard to talent recruitment across the country, the shortage of talents in the construction machinery industry is particularly serious, especially the urgent demand for high-end comprehensive talents, not a “labor shortage” can be described. The increase in labor costs and the rise in raw material costs are undoubtedly not a challenge to the development of the construction machinery industry. Especially at present, many companies are faced with the urgently needed talents no matter how high the salary.

In 2011, the market competition for construction machinery will be more intense. On the basis of greatly improving the self-confidence of domestic enterprises before, the competition for the Chinese construction machinery market will intensify, among which besides the competition among domestic brands, along with China With the acceleration of the pace of internationalization of local companies, competition with foreign big brands will continue to increase. Despite various risks surrounding the situation, China's construction machinery industry must have a long-term vision, while actively attacking the mainland market, accelerating the pace of entry into the overseas construction machinery market, accelerating the pace of energy-saving emission reduction, and constantly looking for corporate transformation and development in the crisis New opportunities.

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