The second-hand excavator market in April experienced ups and downs, with the market receiving a cold reception

2019-04-19

   The first quarter of 2019 is still over, and according to the comprehensive data of the first quarter, there has been a significant decline in the number of second-hand excavators sold in recent years compared to previous years. The overall market sales of various types of large, medium, and small excavators are nearly a thousand units. The main reason for the nearly 60% year-on-year decline in sales profit is related to the repeated cost compression required for transparent and open market operations in the equipment and machinery market in 2019, which has formed a high risk. The profit margin from equipment purchase to sales is insufficient, accounting for 10% of the total investment. In addition, various transportation costs and maintenance have made the enterprise suffer greatly. When comparing the comprehensive cost profit ratio of equipment sales, nearly 30% of the equipment sales have incurred losses, and 40% of the equipment has been sold at almost cost. Only less than 30% of the equipment has maintained profitability. Does the fact that its profit is much smaller than in previous years mean that the survival environment of the second-hand excavator market for construction machinery is in danger in the future.

 

In April, the market implemented a large-scale price reduction for overall equipment and machinery, with nearly half of the equipment purchases coming fromIn 2018, the high prices of equipment did not conform to the market price trend of 2019, and the only way to quickly circulate funds and open up market operations was through large-scale selling.

 

In the next four months, Huacheng will make minor adjustments to its market operation mode, mainly focusing on the unified standard responsibility system for equipment performance requirements and standardized excavator requirements, which will be the main focus of Huacheng in the future. From the feedback from customers, it is known that there are certain risks involved in purchasing second-hand equipment. To effectively and simply reduce these risks, Huacheng needs to do a good job in equipment testing. In terms of detection, the most important core of millions isCan workPlacing the equipment in the testing unit of the market for on-site construction testing to improve the verification of equipment practicality. If it does not meet the standards, it will be returned and not sold. This measure further reduces the proportion of defective equipment in the market. In the overall market environment, no second-hand excavator enterprise promises 100% usability of excavator equipment. Only by monitoring the construction of equipment from the source and providing comprehensive services in case of any problems in the later stages can we revive the cold market.

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