How to deal with the many variables of road machinery
In recent years, my country's construction machinery industry has developed very rapidly, and almost all sub-sectors have shown a relatively high growth rate. In comparison, road machinery has not shown a strong growth momentum, and has always shown a slow growth trend. Except for motor graders, the sales of other major domestic road machinery in recent years have basically remained at the same level as a few years ago. Ji Guangcai, chairman of the Road Machinery Branch of the China Construction Machinery Industry Association, believes that the overall development of road machinery in my country is very stable, but with the changes in the industry structure and the impact of market factors, many problems have gradually emerged. How to explain this seemingly inconsistent development pace, and how the future development trend of road machinery should be, relevant business leaders need to attach great importance to it. The development situation is mixed. After 2005, my country's highway construction has entered a new period of rapid development. Five large-scale highway network construction projects including China's highway network, rural highway network, and comprehensive transportation network have kicked off one after another. At present, the total mileage of China's highways has exceeded 30,000 kilometers, second only to the United States in total length. According to data from relevant departments, it is estimated that the total mileage of highways in my country will reach 84,800 kilometers in 2035. Overall, my country’s highway transportation construction still has great potential. Ji Guangcai said that the great development of my country's highway construction has provided huge market opportunities for the entire construction machinery industry, and the high investment in highway construction has provided sufficient economic guarantee for the purchase of construction machinery. At present, the domestic and foreign markets have a very large demand for road machinery. In 2007, my country completed a highway investment of 750 billion yuan. This year, my country's road investment budget still maintains a relatively high level; in addition, the number of road machinery exports in my country is still increasing. Regarding the problem that the sales of most road machinery products have not risen sharply in recent years, Ji Guangcai believes that there may be two reasons: one is that in the road construction in the past few years, the market retention has increased too fast, making the market now The demand is not strong; second, part of the state invested capital is used to offset the increase in costs brought about by the price increase of raw materials, resulting in the failure to reflect its market demand capability. In recent years, the prices of raw materials have continued to rise. In addition to the less impact of maintenance machinery due to higher technical added value and greater profit margins, other products have been greatly affected. This factor cannot be ignored. In addition, although my country's investment in transportation construction is very strong, the overall investment growth rate is low, which is also an important factor restricting the rapid development of road machinery. According to industry insiders, this is due to the basic formation of the highway network in major regions of our country. The indicator of "30 minutes in the eastern region, 60 minutes in the central region, and 120 minutes in the western region on the highway" has been basically achieved in many regions. On the other hand, the pressure of railway transportation is too high, and the focus of transportation construction tends to be railway. In comparison, the demand for road construction is not as urgent as in previous years, and the current road construction projects are relatively in a relatively stable growth stage. Market competition is becoming increasingly fierce. my country's road machinery market is currently in a relatively stable period of development, and users and enterprises are becoming more rational. Brand, quality, technology, service, etc. are playing an increasingly important role in marketing. At the same time, the industry structure and the nature of enterprises are constantly changing, and the competition in my country's road machinery industry is becoming increasingly fierce. First of all, a group of international brands with strong technical and economic strength, such as BMW, Dynapac, and Ingersoll Rand, set up production bases in China. Almost all of them take the form of sole proprietorship, and the world's advanced level will directly impact my country's market. The object of technology introduction in the past has become a competitor standing in front of Chinese companies, which will undoubtedly have an important impact on the pattern of China's road machinery industry. At present, these companies have established a firm foothold in the Chinese market. The business of large construction machinery companies covers road machinery products. Xugong, Sany, Zoomlion, Liugong and other large enterprises have established specialized road machinery companies to mass-produce road construction and maintenance machinery such as road rollers, pavers, milling machines, and mixing equipment. Relying on the advantages of product brands, sales channels, and strong technical strength in the field of construction machinery products, many products of these companies have also occupied a dominant position in the market. Their intervention will undoubtedly greatly enhance the strength of my country's road machinery industry. In addition, a number of small and medium-sized private enterprises in my country have grown rapidly. Enterprises such as Liaoyang Zhuji and Shenyang Northern Transportation Heavy Industry Group have occupied a very important position in asphalt mixing equipment and maintenance machinery; the original Xi'an Zhuji and Zhenjiang Huachenhua Through deepening reforms, a group of established companies such as Tong have also adapted to the changes in the market. At present, the technical level of my country's road machinery manufacturers has been greatly improved, close to the world's advanced level, the era of relying on imported technology to promote development is over, the development cycle of large-scale asphalt mixing equipment, paver and other products generally does not exceed one year . However, the products of Chinese enterprises still have defects such as low precision and insufficient performance. In the fierce market competition, whether these shortcomings can be overcome as soon as possible is directly related to whether Chinese enterprises can develop rapidly. Obstacle factors should not be underestimated. According to Ji Guangcai, the road machinery industry has the characteristics of relatively small product demand and rapid update speed, so small and medium-sized enterprises are easier to adapt. But at the same time, if the scale of the company is small, its ability to resist risks is small. In particular, many companies currently adopt the method of selling on credit, and the return rate is low, which makes the enterprise's liquidity insufficient and hinders its development. This method needs to be changed. At present, the products of domestic enterprises are generally convergent, and there are few original innovations and iconic technologies. Most of the innovations of enterprise products focus on the control system, with similar core technologies. This has a lot to do with the company's investment in technological innovation, and this is exactly the "old problem" of road machinery companies. This requires business leaders to change their ideas and have long-term awareness. They should not only consider whether the company can achieve results in the short term, but must have a steady stream of scientific and technological investment. In this regard, large companies have comparative advantages. They can rely on the technology center of the group to develop new products in a step-by-step manner. In recent years, the export situation of my country's road machinery products is very good. Some products have increased greatly, and a considerable part of the products are sold to Europe and the United States. However, due to inadequate understanding of the product standards, access conditions and certification of the counterparty's market, Chinese enterprises have suffered many trade losses. Enterprises should carefully study the characteristics and requirements of overseas markets and learn to protect themselves in international trade. With the improvement of my country's highway network construction, the proportion of highway maintenance work will gradually increase, and the demand for maintenance machinery will increase substantially. Ji Guangcai emphasized that the technical added value of maintenance machinery is relatively high, and the impact of rising raw material prices on it is relatively small. Enterprises can adjust their production plans accordingly, which can avoid risks and prepare for the next step in the market; and The impact on other road machinery is relatively large, and enterprises should reasonably increase product prices on the basis of ensuring the quality of products and services to adapt to market demand.
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