On April 11, Sany Heavy Machinery issued a letter of respect to customers-"Notice on Sany Digging Price Increase", the content of the notice showed that its company's excavator price will be increased, small digging will be increased by 10%, and Zhongda Excavating will be raised. 5%. This is after Sany Heavy Industry officially released the comprehensive price increase of concrete machinery products on April 9, Sany announced the price increase of excavators again.
Prior to April 9th, Sany Heavy Industry Pumping Division had taken the lead in issuing a notice to customers "Notice on Sany Concrete Pump Truck's Comprehensive Price Adjustment", which showed that the price of concrete pump trucks was raised by 5% -10%. The reasons for price adjustment are similar: the overseas new crown epidemic has fully spread, European heavy truck chassis manufacturers have successively announced shutdowns or production reductions, and the construction machinery industry has a very short supply of imported chassis resources, and the chassis has been upgraded from three generations to four generations, and the cost of upgrading from Euro 5 to Euro 6 has increased significantly.
On April 10, Xugong Excavating Machinery Division, one of the core enterprises of Xugong Group, another domestic construction machinery giant, also issued a similar notice, saying that the negative impact of the global epidemic on the excavator industry chain is becoming increasingly prominent, and the cost has increased significantly. Specially increase the price of small excavators by 10%, and the price of medium and large excavators by 5%. "
"Excavator sales" has always been known as the barometer of the infrastructure industry. According to industry statistics of the China Construction Machinery Industry Association, the 25 mainframe manufacturing companies included in the statistics from January to March 2020, sold a total of 68630 sets of various types of excavation machinery products, a year-on-year increase of -8.2%. Among them, 61277 units were sold in the domestic market, an increase of -11.6% year-on-year; 7353 units were exported, an increase of 34.9% year-on-year.
Although the data for the first quarter was poor, the monthly data for March was more eye-catching. Data show that in March 2020, a total of 49,408 excavating machinery products were sold, a year-on-year increase of 11.6%. The domestic market sold 46,610 units, an increase of 11.2% year-on-year; the export sales were 2,798 units, an increase of 17.7% year-on-year.
Since 2017, the boom of the construction machinery industry has continued to rise. The prosperity of the engineering industry is closely related to macroeconomics, fixed asset investment, infrastructure investment, and real estate investment, and is a cyclical industry. In the last cycle, due to the "4 trillion" stimulus, construction machinery reached its sales peak in 2011, and then declined year by year. It regained its upward trend in 2017. At present, the construction machinery industry is driven by infrastructure demand, environmental protection upgrades, equipment upgrades, and labor. The substitution effect and other multiple positive driving effects, the industry is in the rising period.
Recently, statistical data released by China Construction Machinery Industry Association showed that in March 2020, a total of 49,408 sets of excavation machinery products were sold nationwide. In March last year, the nationwide sales of excavators once set a record 44278 units at the time, and the latest data increased by 11.6% on the basis of the original record.
According to the statistics of China Construction Machinery Industry Association quoted by the First Construction Machinery Network, the 25 mainframe manufacturing enterprises included in the statistics in 2019 sold a total of 235,700 sets of excavation machinery products, an increase of 15.9% year-on-year; the export sales of various excavation machinery products reached 2.66 Ten thousand units, a year-on-year increase of 39.4%. At present, the output of construction machinery remains high, and it is expected that the output of construction machinery will remain high in 2020.
Construction machinery products include earthmoving machinery (excavators, loaders, bulldozers), cranes (automobile cranes, truck cranes, crawler cranes, tower cranes, aerial work platforms), concrete machinery (concrete mixer trucks, concrete pump trucks and tow pumps) , Concrete mixing station), pavement machinery (roller, paver, ground milling machine), pile driver machinery (rotary drilling rig, continuous wall grab, pile driver).
The terminal demand of construction machinery can be divided into two aspects, one is engineering demand, and the other is productive demand. Most of the products of construction machinery are applied in two aspects at the same time. Judging from the core product excavator, on the one hand, the excavator is needed in the civil engineering stage of road and bridge construction, municipal construction and real estate development; on the other hand, the daily production of the mining industry is inseparable from the excavator. Another mainstream product truck crane is also used in railway construction, municipal construction, real estate development and petrochemical, power plant and other heavy industries and municipal daily maintenance.
This characteristic of the terminal demand of construction machinery determines that construction machinery in China has a certain basic demand even when the growth rate of investment slows down, and will not fluctuate as drastically as construction. In recent years, with the application of financial means in the sales of construction machinery products, financial leverage has been added to the sales chain of construction machinery. Financial leverage has caused the inventory fluctuation of the entire sales chain to be amplified, and the fluctuation of terminal demand is being transmitted to the supply. The time is greatly enlarged.
Construction machinery is a traditional special-purpose machinery, which is a typical investment-driven variety and has a certain periodicity. At the same time, due to the acceleration of manual substitution, export growth, multi-variety continuation, and certain growth.
The construction machinery industry has attracted a lot of attention in the capital market in recent years. One of the reasons is that the sales growth rate of construction machinery products is often regarded as a vane for investment and macroeconomics; the second reason is that the construction machinery industry is equipment The largest segment in the manufacturing industry has spawned a number of outstanding enterprises such as Sany Heavy Industry, XCMG Machinery, Zoomlion Heavy Industry and other companies.
According to the Yellow Table of the top 50 global construction machinery manufacturers released by KHL Group, a construction machinery information provider, the total revenue of the top 50 global construction machinery industry in 2018 was US $ 184 billion. In 2018, Sany Heavy Industry and Xugong Group ranked 7th and 6th respectively in the global construction machinery industry, with market shares of 4.6% and 4.8%, respectively. The top 10 global construction machinery in 2018 also includes: Caterpillar, Komatsu, John Deere, Hitachi Construction Machinery, Volvo Construction Machinery, Liebherr, Doosan and JCB.
Among the current domestic market sales, Sany Heavy Industry, Xugong Machinery and Caterpillar together account for more than 52%, with a solid position, of which Sany is more than 25%, such as Liugong, Doosan and Shandong Lingong sales, the top six With a combined market share of 73%, the leading competitive advantage is very significant.
If we look at the changes in market share, the market share of Sany Heavy Industry and Xugong Machinery has steadily increased, and foreign investment such as Caterpillar and Doosan have declined significantly. The competitive advantages of the products of domestic leading companies are already very obvious. While consolidating the domestic market share in the future, the power to go abroad will be equally strong, and it is expected to become a global construction machinery giant.
According to 2018 global construction machinery sales data, China's construction machinery sales reached 279,900 units, accounting for 26.38% of the world's total; China's construction machinery sales were 25.33 billion US dollars, accounting for 23.01% of the world's total. According to the calculation of the price of a single machine, the average price of Chinese construction machinery is US $ 85 million per unit, which is only 50% of the North American market. On the one hand, for benchmarking overseas mature markets, China's construction machinery has room for product structure upgrades and price increases, which is conducive to further expanding the market scale; on the other hand, overseas markets provide a broad market space for Chinese construction machinery enterprises to export.
The internationalization path of construction machinery enterprises can be divided into sales globalization, production globalization, capital globalization and management localization. Export sales are the first step towards globalization. The first purpose is to sell products to hedge against the slump in domestic market demand. The second is to seize the market and use the first-mover advantage to form competitive barriers. The third is to establish a global sales agency system and build channel barriers.
Globalization of production is the beginning of scale expansion. Following the principle of cost-effectiveness, cross-purchasing forms an upstream synergy, investing in factories to reduce costs and increase efficiency in midstream companies, local product development, and proximity to downstream customers. Globalization of capital runs through the development of the enterprise, and fixed cost amortization produces a synergistic effect; the global localization of talent management develops with the localization of products.
Overseas construction of factories follows the principle of cost-effectiveness. Factors to be considered include downstream demand, cross-purchase of procurement, raw material costs, product competitiveness, etc. Therefore, expansion of production needs to consider upstream synergy, midstream companies ’own cost reduction and efficiency enhancement, and downstream Differentiated needs of customers.
Developing countries are in a critical period of urbanization, and the corresponding infrastructure and real estate development and construction investment is vigorous, thereby driving the continuous high growth of demand for construction machinery and equipment. In contrast, the mature market in North America, excluding the impact of the 2008 financial and economic crisis, infrastructure and real estate investment double innovation low impact, its construction machinery sales basically maintained at 25 billion U.S. dollars, accounting for about 30% of global sales. The volatility is relatively small compared to the emerging domestic growth markets.
From the perspective of 10 years, the development of the excavator industry is inseparable from the drive of the big cycle. In the financial crisis of 2008, the government's investment of 4 trillion yuan led to a substantial increase in infrastructure investment, as well as sales of construction machinery such as excavators and cranes. According to the scrap period of construction machinery is 8-10 years, it is expected that construction machinery will usher in a peak scrap period in 2019-2021.
Excavator is one of the most growing product categories in construction machinery. By changing different attachments, excavators can replace some functions of bulldozers, loaders and cranes; and with the continuous increase in labor costs, the penetration rate of construction machinery is expected to increase steadily in the long term. Its sales account for more than 30% of the total sales of the entire industry.
The downstream applications of the excavator and construction machinery industries have a high degree of overlap (real estate and infrastructure account for about 70% of the application fields). The downstream industries mainly include real estate, infrastructure, mining, other and export markets. The excavator's data is more comprehensive and easily available, and its sales changes can better reflect the pace of sales changes in the entire industry.
From the perspective of the relationship between the excavator industry and the sales of the entire construction machinery industry, the boom in the excavator market is sensitive to the development of the construction machinery industry.
Unlike the sales of construction machinery and equipment, the construction machinery and equipment leasing market is a stock service market for holdings. The market demand is directly related to downstream fixed asset investment. Therefore, the equipment leasing industry naturally has a weak periodicity, which is The changes in demand in recent years are not as drastic as equipment. From the perspective of the growth rate of the construction machinery rental market, the construction machinery equipment rental market has basically maintained a stable and high-speed growth that matches the growth rate of China's fixed asset investment. It is one of the few construction machinery. A sub-industry that continues to grow healthily.
In recent years, China's construction machinery rental industry has continued to grow and grow, with total output value increasing from 150 billion in 2010 to 620 billion in 2018, with a compound growth rate of 19.4%.
In terms of environmental protection, the emission standards of China's construction machinery have gone through three stages: National One, National Second, and National Three, and will soon usher in National Four. On February 20, 2019, the General Office of the Ministry of Ecology and Environment issued a modification sheet for the solicitation of "<Limits and Measurement Methods for Exhaust Pollutants from Diesel Engines for Non-road Mobile Machinery (China Third and Fourth Stage) (GB 20891-2014) ( "Consultation Draft"), clearly pointed out that the National IV standard will be implemented from December 1, 2020. At the same time, as the implementation of non-road mobile machinery mapping investigation and code registration is tightened, a new wave of replacements will come.
The high technology and durability of construction machinery equipment determine the stock nature of the industry and the strong after-sales market characteristics. Therefore, the globalized balanced layout is an ideal model for construction machinery enterprises to seek to smooth out fluctuations through the cycle. The ability of global layout requires enterprises Possesses global production and purchasing capabilities, global sales network capabilities and global management capabilities.
The periodicity and tradeability of construction machinery products determine that each market has a saturation threshold and commodity prices are determined by the supply and demand relationship in the global market. Its production, distribution, and prices are affected by international competition. The leading construction machinery companies all achieve global layout to expand scale and reduce risks. As a result, international management has become the choice of more and more construction machinery companies.
In mid-to-late March, infrastructure resumption accelerated, and it is expected that April will usher in an accelerated period of resumption of real estate and municipal engineering. Concrete machinery and cranes in the later period of the cycle are expected to usher in higher growth rates. On the other hand, domestic and foreign parts production capacity is limited, and domestic substitution is accelerating. In recent years, driven by product upgrades, environmental protection requirements, and the “Belt and Road” policy, the overall upward trend of the construction machinery industry will continue.
