After the export growth rate soared to the historical peak in 2021, the export situation of China's construction machinery industry has maintained a good development momentum since 2022. The export of major construction machinery products continued to grow at a high rate, and continued to develop in many overseas regional markets. In depth acceleration of overseas layout is becoming a common choice of many enterprises.
XCMG's 100 new energy mining trucks are competing in mines in South America, more than 300 excavators are popular in North America, and large tonnage mining dump trucks break through the high-end market in Europe; More than 300 sets of Sany Heavy Industry equipment were sent to Indonesia, and 6-ton loaders were delivered overseas for the first time; Zoomlion has more than 100 earth moving machinery and equipment going to the "the Belt and Road" and engineering cranes shining in Turkey komatek 2022; Liugong exported 65 large-scale heavy equipment to Europe, earth moving and pavement equipment to Latin America
Under the challenging and uncertain economic and environmental situation at home and abroad, the demand for orders in overseas markets only increases.
On the one hand, the backlog of orders in overseas markets due to the epidemic has been gradually completed, and the price rise of bulk commodities such as coal has driven mining and demand. There is still much room and potential for governments to hedge the negative impact of the epidemic by spending on stimulus policies and other infrastructure investments. On the other hand, against the background of the epidemic, China has quickly introduced a series of rescue policies to stabilize the industrial chain supply chain and help foreign trade enterprises, so as to ensure the import and export business of key industries. In addition, the entry into force of the RCEP agreement not only brings tax policy dividends to enterprises' exports, but also further expands the opportunities for exporting equipment to countries in the RCEP region.
Continued strong growth and sufficient resilience
Export amount: according to the statistics of the General Administration of customs, the export amount of China's construction machinery from January to April 2022 was US $13.496 billion, an increase of 27.2% year-on-year. Among them, the total export of complete machines reached US $8.027 billion, a year-on-year increase of 36.7%, accounting for 64.3% of the total export; The export of spare parts reached US $4.465 billion, a year-on-year increase of 32.4%, accounting for 35.7% of the total export.
Export sales: from January to April 2022, excavators (33791), loaders (13529), graders (1870), bulldozers (1290), rollers (2389), truck cranes (1268), truck mounted cranes (882), crawler cranes (497), and The export sales of ten categories of aerial work platforms (21027 sets) and industrial vehicles (111001 sets) all achieved double-digit growth.
Performance of major enterprises: taking some leading enterprises in the industry as examples, from January to March 2022,
XCMG's export value increased by 143% year-on-year. (the overseas market revenue of XCMG crawler crane in January exceeded 100 million yuan, with a year-on-year increase of over 500%.)
Sany International's overseas revenue increased by 161% year-on-year, accounting for 26.5%.
The export revenue of Shanhe intelligent increased by more than 90% year-on-year, and the number of excavators in the European market exceeded 20000.
Liugong's overseas parts sales revenue exceeded 10 billion yuan, a year-on-year increase of 73%. (in January, Liugong's overseas sales increased by 103% year-on-year).
Distribution of major regional markets: from January to March 2022, China's construction machinery exports to Africa, Latin America, ASEAN, the European Union and the United Kingdom took the lead. Regions with large growth mainly include Africa, Latin America, Russia and the United States. The growth rates of exports from North America, South America, Europe and Oceania were 45.7%, 57.2%, 32.7% and 50.3% respectively. The main regional markets with small growth are South Korea, India and ASEAN, while Hong Kong is the declining region.
Specific to countries, exports to the United States, Indonesia, Russia, Japan, Australia, India, Brazil, Belgium, Thailand, South Korea, Vietnam, Germany and other countries from January to April were more than US $300million, occupying a major market position. Distribution of top ten countries and regions of China's construction machinery export from January to April 2022.
According to public data, from January to April 2022, only 11000 construction machinery and equipment were exported from Lianyungang port, with a year-on-year increase of 3.3% and a year-on-year increase of over 15% in the value of goods. In April, the value of exported construction machinery and equipment reached US $54.82 million, a year-on-year increase of about 5%. Orders mainly went to Europe, North America, Latin America, Southeast Asia and other regions.
Strong market demand in overseas regions
Corresponding to the growth of the export market of domestic enterprises, since 2022, major foreign brands have increased to varying degrees in Europe, America and emerging markets. From January to March 2022, the sales volume of Caterpillar's construction machinery sector totaled US $6.115 billion, of which US $2.720 billion was in the North American market, a year-on-year increase of 28%, and US $627million was in Latin America, a year-on-year increase of 60%.
According to Komatsu's official data, North America and Southeast Asia are the regions with continuous growth in equipment demand from January to March 2022. The monthly growth rate of North American market in the first three months was 24%, 27% and 5% respectively, and that of Southeast Asian market in the first three months was 39%, 57% and 53% respectively. It is basically consistent with the operating hours of Komatsu excavator. From January to March 2022, Volvo Construction equipment sales in South America increased by 62%, followed by North America, with a year-on-year increase of 11%, Africa and Oceania, and Europe, with a year-on-year increase of 5%.
The terminal demand in these regions is still strong, and most people believe that it will continue to grow in the future. Although the commencement of some projects and the timeliness of investment can not be determined, once the investment plan is put forward, it will be enough for the engineering contractor and equipment leasing company to have greater certainty about the future quantities of work and add confidence to their investment in new equipment.
North America: the booming residential construction market stimulates the unprecedented demand for small equipment. The scarcity of labor and the rising cost of labor will further promote the growth of the equipment market.
Of the $1.2 trillion infrastructure bill of the White House, $100billion was used for roads, bridges and major projects; $65billion to expand broadband access and affordability; US $66billion for railway construction; $55billion for water infrastructure; $25billion for airport construction; US $39.2 billion in new transport spending; $5billion for electric vehicle charging stations. According to Reuters, the aforementioned $100billion fund has been released. It is expected that the equipment sales will increase in the next two years. Liugong North America expects that the growth rate of the company in the region will be about 60%~70% in 2022.
Southeast Asia: at the just concluded excon 2022 (India International Construction machinery and Technology Exhibition), XCMG (1billion yuan), Sany Heavy Industry (800million yuan), Liugong (more than 600 sets) and other enterprises respectively won large (volume) equipment orders.
In terms of infrastructure, the nip plan with an investment scale of Rs. 111 trillion (US $1.5 trillion) details India's infrastructure development roadmap to 2025, of which more than 70% has been allocated to four infrastructure sectors: energy (24%), roads (19%), urban infrastructure (16%) and railways (13%).
Among them, the primary driving force of mechanical equipment demand comes from road construction, i.e. bharatmala project. The goal is to complete 35000 km by 2024-2025 fiscal year, with an investment of INR 20.34 trillion (US $275billion). More than 13.67 trillion Indian rupees (185billion US dollars) will be invested in railway construction. Two recent new government initiatives, the national monetization pipeline (NMP) and the gatishakti plan, will also contribute to financing, integrated planning, coordination and faster project implementation.
"Our concrete mixing plant, XCMG excavator series, wheel loaders, graders and pile drivers have gained huge application space in the bharatmala project," said the relevant person in charge of XCMG Limited (schweinstad India)
The demand potential of the Indian market is very considerable. Even if the 2024 general election may lead to a certain degree of decline, it will not affect the overall trend.
In 2021, the number of Sany excavators in Indonesia will exceed 5000. In January 2022, the sales volume of Liugong Indonesia increased by more than 2000% year-on-year. Also here, Komatsu's operating hours have been in the leading position, increasing by 7.0%, 1.7%, 0.6% and 7.8% respectively in the first April of 2022. The Yawan high-speed railway with more than 100 sets of equipment from Zoomlion has entered the sprint stage. On March 16, Zoomlion's offices in barikapan and JUGANG, Indonesia were also officially opened.
In terms of demand, in the national medium term development plan 2020-2024 issued by the Indonesian government, infrastructure is a priority development project, with a total investment of US $359.2 billion. On January 18, 2022, the Indonesian parliament passed the draft law on the national capital, confirming that the capital will be moved from Jakarta to East Kalimantan Province, and plans to start the construction of the new capital within this year, which will mean that the country will need a lot of construction machinery and equipment in the next 10 years.
Latin America: from January to April 2022, the export volume of China's construction machinery products to Brazil reached US $414.89 million, an increase of 89.63% year-on-year. In the same period, XCMG Brazil's sales revenue increased by 490% year-on-year. Previously (October 26, 2021), XCMG machinery had signed a memorandum of cooperation with vale, a global mining giant, including zero carbon emission equipment and automatic driving equipment. A batch of mining and infrastructure equipment had just been delivered on May 18.
In addition to mining of mineral resources, the Brazilian government is taking many measures to plan for economic revitalization after the outbreak, and the construction of infrastructure continues to accelerate. Brazil is vigorously promoting the construction of transportation infrastructure through a series of measures such as improving the tax mechanism and system and improving the investment environment. It plans to build or expand 7500 kilometers of domestic roads and 10000 kilometers of railways, with a total bidding amount of more than 10billion US dollars.
Europe: according to VDMA (German machinery and Equipment Manufacturing Association), in 2021, China's machinery and equipment exports to the EU (excluding Germany) increased by 32% year-on-year, significantly faster than Germany's 11% growth in machinery and equipment exports to EU countries, which means that the market share of Chinese equipment in the EU region has further increased. Some manufacturers and dealers say they can actually sell more equipment if the supply is sufficient.
Facing the future, the new federal government has made a lot of investment in German infrastructure projects, including the repair of aging infrastructure (roads, bridges, etc.) and the construction of green infrastructure.
The former plans to start with the demolition of the rahmede highway bridge near L ü denscheid. Autobahn, a German government highway company, provided a budget of 530million euros (578million US dollars). The latter began with the green infrastructure initiative between Germany and Indonesia. Germany will provide up to 2.5 billion euros (2.7 billion US dollars) in loans for infrastructure projects in Indonesia.
The German market is expected to grow steadily in the coming years. It should be noted that the trends of cost control, construction safety, standardization and automation are also driving the market to further transform to the leasing mode. In the future, more new equipment purchases in the German market may come from lessees. At the same time, it also faces the challenges of tight supply chain and labor shortage.
Infrastructure projects such as the Grand Paris Express (US $40.2 billion), the 2024 Olympic Games and Paralympic Village in Paris (US $3.9 billion) launched by the French government and the growing investment in construction and civil engineering, such as university campuses and the University of Southern Paris (US $319.5 million), are driving the growth of demand for construction machinery and equipment in France.
According to the prediction of research and market, the French market is expected to reach US $15319.1 billion in 2027, with an expected sales volume of 48898 sets.
Russia: according to the statistics of Manzhouli customs, 1282 complete sets of construction machinery were exported from Manzhouli Port from January to February 2022, with a year-on-year increase of 13%, covering more than 20 categories of products such as dump trucks, excavators and cranes, which were mainly sold to Russia and central and Eastern European countries.
Despite the complex and volatile external situation, the 22nd Russia international construction and Construction Machinery Exhibition (CTT Expo 2022) was held as scheduled at the end of May. XCMG, Sany Heavy Industry, Zoomlion, Nanfang Road Machinery Co., Ltd., tietuo Machinery Co., Ltd., Lingong Heavy Machinery Co., Ltd., Liugong Machinery Co., Ltd. and other Chinese enterprises appeared one after another, sending a positive signal to boost the global market.
At present, the China EU high-speed rail project has attracted much attention. This line is about 7000 kilometers long from Beijing, China to Moscow, Russia, with an estimated investment of 1.5 trillion yuan. Once such a large-scale project is successfully started, the demand for equipment can be imagined.
High end and customization are further highlighted
The rapid growth of export market is inseparable from the continuous layout and accumulation of enterprises. With continuous breakthroughs in technology and focusing on differentiated and personalized needs, China's construction machinery head enterprises are increasing their presence in overseas markets. While taking into account the markets along the "the Belt and Road", they continue to make efforts to Europe and the United States and other high-end markets.
In 2021, XCMG invested US $99million to establish XCMG USA and its subsidiaries to undertake the implementation and implementation of the company's main internationalization strategy in North America. In the first half of 2022, Liugong began to deploy financial leasing and equipment leasing businesses in the North American market. The Italian subsidiary of Sany Heavy Industries opened in February, 2022, with further localization. Zoomlion saw the global demand for nuclear power and helped the global low-carbon development.
The localization layout of Chinese enterprises in overseas medium and high-end markets is market-oriented and more customer-oriented. We see that there are more and more customized products for different regional markets, and XCMG is relatively advanced in this regard. "The whole series of models comply with the local Mar-1 emission standard. More than 20 differentiated functions and configurations have been upgraded, all of which are equipped with independent boom heads preferred by users in South America. Models above 100 tons are also equipped with boom head monitor functions and automatic transmission configurations preferred by users in South America."
This is XCT customized for South American market delivered by XCMG in late March this year_ RB series "peak white" crane products are also one of hundreds of regional customized series products launched by XCMG since the first batch of 25 customized crane products were launched in 2019. In addition to crane products, XCMG's customized products for overseas markets have now covered major product segments such as excavators, loaders and floor machines.
It is undeniable that these leading enterprises have accumulated certain overseas market development strength in recent years, but the proportion of overseas business in the overall revenue is relatively small, and there is still much room for improvement.
The development stages of regional markets around the world are also different. Considering the differences in urbanization level and labor price, if you want to win more shares of medium and high-end markets and cope with more fierce competition, you need to continue to work hard on the further improvement and localization of core technologies.
As the cycle goes down, the necessity of export has increased again. Although the hedging of overseas income increase to the downward pressure on the domestic market is relatively limited in the short term, whether it is the optimistic prospect of the overseas market or the more competitive business structure, in the long term, the hope of the overseas market is huge. Enterprises should improve their internal skills and accumulate enough stamina to better grasp the future growth space.
