From July 4 to 14, 2022, construction machinery today conducted the "survey on the survival status of Chinese construction machinery agents in the first half of 2022". The sample covers all provinces and regions except Hong Kong, Macao, Taiwan and Tibet. From the distribution of regions, brands and levels of the samples, it can basically reflect the current situation of the agency channels of China's construction machinery industry at this time point after the end of the first half of 2022.
25% of construction machinery agents have serious losses
From the analysis of the survey results, in the first half of 2022, 72.62% of the agent enterprises were at a loss, and only 27.38% of the agent enterprises were in a state of low profit or profit. Compared with the survey results in the first quarter of 2022, the number of enterprises at loss narrowed slightly, and the loss area narrowed by 3.85 percentage points.
However, the number of enterprises that can operate normally through the subsidy of the main engine plant continues to increase (from 44.12% in the first quarter to 47.62%, accounting for an increase of 3.5 percentage points), and the number of enterprises with serious losses has decreased (from 32.35% in the first quarter to 25.00%, accounting for a decrease of 7.35 percentage points), but it still accounts for a quarter.
At the end of the first half of 2022, the profitability of the agent group has improved slightly, but the overall loss is still more than 70%. Considering the survivor's deviation, the actual loss will be greater.
We divide all the surveyed enterprises into six categories. The first category is enterprises with profit and market share growth, accounting for 8.89%, an increase of 1.80 percentage points over the first quarter of 2022; The second category is the enterprises whose profits and market share have decreased, which may be due to strategic contraction, accounting for 13.16%, an increase of 2.52 percentage points; The third category is the enterprises that are profitable and have the same market share. Their operations are relatively stable, accounting for 5.33%, a decrease of 0.47 percentage points; The fourth category is enterprises with losses and increasing market share, which have made strategic losses, accounting for 21.18%, an increase of 1.55 percentage points; The fifth category is enterprises with losses and flat market share. Their operations are dangerous and need high attention, accounting for 22.19%, a slight decrease of 1.58 percentage points; The sixth category is the enterprises with losses and declining market share. The operation situation has been very dangerous and needs to be paid high attention, accounting for 29.25%, a slight decrease of 3.82 percentage points. The group of dangerous agents of the latter two decreased slightly, but the total proportion is still more than 50%. It is necessary to arouse the colleagues of agents in the industry to be vigilant about their own operating conditions.
36.90% of the agents have different degrees of buyout behavior
In the first half of 2022, agents who did not buy out accounted for 63.10%, an increase of 6.85 percentage points over the end of the first quarter of 2022. In the short term, the distribution of goods at the channel end at the end of the second quarter has improved and eased. It is expected that by the end of the third quarter and the fourth quarter, the buyout situation may continue to intensify.
The number of enterprises that bought out less than 50 inventory machines increased from 26.56% in the first quarter to 32.13%; The number of enterprises that bought out 51-100 inventory machines decreased, from 11.46% to 1.79%.
The price war in the first tier market tends to normalize, and the intensity eases slightly
In the first half of 2022, 89.52% of the surveyed agents suffered losses during small sales, an improvement of 4.65 percentage points over the first quarter of 2022; 41.90% of them lost money in sales, an improvement of 5.81 percentage points; 3.57% of them lost money during the sales boom, an improvement of 0.56 percentage points.
The operating conditions of agents are challenging
Compared with the first quarter of 2022, the business of 88.10% of the surveyed agents declined significantly in the first half of 2022, while the profits of 65.48% and 59.52% of the agents declined sharply and the overdue repayment rate of users increased significantly.
The proportions of the above three points increased by 11.02, 0.90 and -5.06 percentage points respectively. It can be seen that, in addition to the slight improvement in the overdue repayment rate of users, the business situation of agents is still very unsatisfactory. The decline in business and profits is the common industry situation that most agents have to face.
Cash flow and business adjustment are the most anxious problems of the agent decision-makers
From the perspective of the most anxious core issues of the agent decision-making level, they are the cash flow status of the enterprise, the strategic layout of the enterprise business, risk control and market share assessment, which are the four most stressed levels of the agent enterprise at the current stage.
Compared with the first quarter of 2022, at the end of the first half of the year, the selection proportion of market share assessment and agent human resource management decreased by 6.70 and 2.98 percentage points respectively; The selection proportion of cash flow status, risk control and business strategic layout of agency enterprises increased by 3.27, 2.83 and 2.09 percentage points respectively.
According to the current pressure of the investigated agent bosses, we sorted out the following word cloud based on the text data. The larger the text, the more concentrated the pressure sources and the more bosses we choose.
In the first half of the year, the average layoff proportion of agents was 6.46%
According to the feedback on the changes of human resources of agents, in the first half of 2022, 62.5% of agent enterprises continued to streamline their human resources, and the layoffs increased by 11.54 percentage points, with an average layoff ratio of 6.46%, an increase of 1.88 percentage points over the first quarter; 36.11% of the agent enterprises did not actively adjust their human resources; In addition, 1.39% of the agent enterprises continued to expand their human resources, decreasing by 0.82 percentage points.
Outlook: post market layout
In the exploration of diversified transformation, leasing is blocked
From the feedback of the future outlet of agents, 38.10% of agent enterprises choose the market service after transformation. Compared with the survey data in the first quarter of 2022, the proportion increases by 7.89 percentage points; 32.14% of the agent enterprises chose to diversify, an increase of 8.18 percentage points; 15.48% of the agent enterprises chose to take the initiative to integrate and merge, a decrease of 3.27 percentage points; 3.57% of agent enterprises transformed into lessors, with a decrease of 9.97 percentage points; Another 2.38% of agent enterprises choose to quit; 8.33% of the agent enterprises made other choices.
The proportion of agent enterprises in transformation leasing has been significantly reduced by 9.97 percentage points, which means that some agents are not optimistic about the medium and short-term development of operational leasing business due to tight short-term cash flow and insufficient operating experience in the process of transformation to operational leasing.
In the past, the idea was to "fight against rivers and mountains", but now we should change the idea into "guarding rivers and mountains". It has become the consensus of more sober agent groups to reduce costs and increase efficiency, open up new profit models, and carry out diversified transformation while adhering to them.
Report to the regiment for warmth and spend the cold winter together. It is hoped that the Quarterly "survey on the survival status of Chinese construction machinery agents" carried out by construction machinery today magazine and China Construction Machinery Market Research Center can provide some valuable decision-making reference information and confidence to move forward for the majority of colleagues in the industry, especially the construction machinery agent group that is still adhering to and struggling
