2012-07-20
Recently, the excavator industry and other construction machinery industries have been exposed to a crisis, with news of layoffs and salary cuts from multiple companies repeatedly spreading. Since the late 1960s, China has been researching and developing excavator products. After just over 40 years, especially over 30 years of reform and opening up, the development of China's excavator manufacturing industry has been particularly rapid. At present, the excavator industry is undergoing an unprecedented reshuffle.
Users turn to the second-hand excavator industry
From the perspective of user demand, in terms of the purchase cost of excavators, the price of a new excavator is almost equivalent to that of two second-hand excavators. Although the second-hand excavator is a bit old, it can do twice the work and earn twice the money at the same price. Buying a second-hand excavator has become the first choice.
Data shows that in 2010, there were 252 large-scale enterprises in China's excavator manufacturing industry, achieving sales revenue of 169.785 billion yuan and product sales profit of 25.367 billion yuan, with a total profit of 21.406 billion yuan, a year-on-year increase of over 80%.
According to the report, the excavator market in China has been increasing at an average rate of 30% over the past decade, making it one of the largest markets in the world in terms of usage. From the current situation, China is in a peak period of infrastructure construction in various aspects such as road transportation, energy and water conservancy, and urban construction. The demand for excavators in the market has been increasing year by year. In 2010, the actual cumulative sales of excavators in China exceeded 165000 units, with a year-on-year growth of 74.5%.
It is worth noting that the domestic excavator market is mainly dominated by Japanese, Korean, European and American brands. In terms of the hierarchical structure of the product market,CAT BeileEuropean and American brands such as Volvo, Case, JCB, Terex, and Liebherr dominate the high-end market for excavators in China; Japanese brands such as Komatsu, Hitachi, and Kobelco dominate the mid to high end market; Korean brands such as Doosan and Hyundai dominate the mid-range market; However, overall, foreign investment with high quality and high price still cannot fully surpass the payment ability threshold of Chinese users.
Overall, the domestic ownership of excavators is relatively low, but the product prices are high. The sales model is mainly based on financing leasing or bank mortgages. Once credit is relaxed, excavator sales will be the product with the best rebound.
From the perspective of equipment cycle analysis, China's construction machinery industry has entered the "equipment replacement period" after years of rapid development. According to Hyundai's equipment maintenance theory, the equipment will undergo major repairs after 5-8 years of use, and 70% of users are willing to replace it with a new machine during this period. Second hand mechanical equipment is widely recognized for its low price and high cost-effectiveness, leading to a significant increase in social demand. As a major player, excavators naturally bear the brunt. From a macroeconomic perspective, temporary imbalances in economic development are related to the self-regulation of the law of economic value, which is closely related to the growth of industries such as real estate during the high growth period of national investment in recent years. However, as the national economy continues to enter a normal development trajectory, the demand for engineering in the market decreases, and a large number of second-hand machinery flows into the market.
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