Recently, Sany Heavy Machinery and a paper price increase notice caused a sensation in various media and WeChat groups in the construction machinery industry. In the global economic downturn and uncertain prospects, Sany first began to rise in price against the trend and immediately caused the industry Widely discussed by people.
First of all, the price war of construction machinery has been for a long time. At the annual meeting last year, the appeal of the Construction Machinery Association to not participate in price competition finally got a response.
Second: The price war has indeed brought a lot of negative effects on the sustainable development of enterprises, and manufacturing companies are generally feeling the pressure.
Third: As judged and expected at the time of the outbreak, everyone will use this stagflation period to sort out the development of the entire enterprise. If this goal is achieved, the outbreak will be good news for the developing enterprises with the disease.
Fourth: Thirty-one raises prices, hoping to drive the industry to return to the competition of quality and value, and to compete more benignly from the post-market, comprehensive strength and full life cycle.
Fifth: I also hope that the first price return of construction machinery will also bring tips and guidance to China's manufacturing industry. If this effect is achieved, then this behavior of Sany will be of great significance.
A few days ago, the "Notice on Sany Excavator Price Increase" published by Sany Heavy Machinery on April 11 was published online. Among them, the price of Sany small excavators was increased by 10%, and the price of medium and large excavators was increased by 5%.
The full text of the document is as follows:
Dear customers and friends:
In 2020, the new coronavirus pneumonia epidemic suddenly broke out, and gradually spread to home and abroad, and the upstream and downstream of the industrial chain at home and abroad have been greatly affected.
At present, the domestic epidemic situation is gradually improving, and infrastructure is rapidly picking up. On the contrary, the foreign epidemic situation is becoming more and more serious. Overseas manufacturers of supporting components in the industrial chain cannot guarantee supply, and production costs have risen sharply.
As a leader in the field of excavators in the construction machinery industry, based on the concept of "healthy and sustainable" development, Sany has decided to increase the price of small excavators by 10% and the price of medium and large excavators by 5%.
Hereby, I would like to ask our customers and friends to understand that Sany will not forget the original intention and make every effort to create greater value for you with higher quality and better service. Thank you.
Sany Heavy Machinery Co., Ltd.
April 11, 2020
Sany's move to increase the price of excavators, if it comes true, will have a profound impact on the industry; First, it is a rational response to the price wars in the excavator market, even in the market, especially small excavators in some markets. The price war has hit a negative profit; second, it is a direct manifestation of the supply pressure of the industry chain supporting parts supply system affected by the epidemic; third, it is also Sany ’s active maintenance of the ecological development of the excavator market in the next step. .
However, let us wait and see how the end market views this move.
