Excavator sales, which are regarded as the weather vane of the construction machinery industry and even one of the economic barometers, are rapidly heating up. The global supply chain of construction machinery is tight. Many component manufacturers have announced shutdowns or production cuts. The import resources of core components such as pump chassis and engines are very scarce. The rise in procurement costs of construction machinery companies and the recovery of domestic demand have led to a shortage of many products. For reasons, construction machinery manufacturers have to increase the prices of related products.
On April 17, the Politburo meeting proposed that the macro-control policy should be changed from "increasing" to "greater", emphasizing traditional infrastructure. The Politburo meeting proposed that "the impact of the greater macro-policy should be used to hedge against the epidemic", which clarified that the investment of special national debt may include public health infrastructure.
According to incomplete statistics, there are currently 8 companies that have issued price increase notices, of which the types of price increase mainly include excavators, loaders, earth pumps, truck cranes, and hydraulic static pile drivers. At present, 7 companies involved in excavator price increase, 2 companies for concrete pump trucks and loader, respectively, 1 company for truck cranes, 1 company for hydraulic static pile driver.
Recently, almost all major manufacturers such as Zoomlion, Sany Heavy Industry, XCMG, Liugong, Lingong, Shantui and other major manufacturers have joined the price increase. Pumps, excavators, cranes, bulldozers and many other products have also raised prices. What are the reasons behind it? Relevant persons in charge of the six companies Sany Heavy Machinery, XCMG, Shandong Lingong, Shanhe Intelligent, Yuchai Heavy Industry, and Shantui Excavator responded to this and listened to their voices together.
How do major excavator manufacturing companies think about price increases?
Yuan Yue, general manager of Sany Heavy Machinery Marketing Co., said: "Firstly, the industry chain was severely affected by the epidemic, and the shortage of overseas core components also caused the production cost of Sany excavators to continue to increase. Secondly, the market entered the peak season as the industry Leading enterprises, the consideration of Sany's price increase mainly includes the following aspects:
(1) When the industry's production and sales are booming, stick to the price system and lead the industry from price competition to value competition;
(2) The price increase is not only to avoid price wars, but also to allow manufacturers and agents to have reasonable profits in order to do more valuable things;
(3) Enterprises need to continuously improve in product research and development, performance improvement, reliability, etc. Especially Sany recently recruited a large number of scientific and technological R & D personnel, including high-level talents with Ph.D. degrees, to strengthen the research on technological advancement, and continue to To improve the service level, these require a lot of investment;
(4) In terms of after-sales service, Sany will continue to improve the service level, increase the number of people and vehicles, and increase it every year, which also requires continuous investment by enterprises and agents. Therefore, considering the comprehensive consideration, we decided to adjust the price increase of excavators. "
In addition, Yuan Yue said: "Recently, from the feedback of Sany's customers, the overall situation is still relatively positive and positive. This is because Sany's excavator stock is large and there are many old customers. Of course they don't want to see the equipment. Lowering the price and depreciating the equipment in your own hands. In addition, users also hope that manufacturers can develop higher quality products, provide better services, and maintain the previous service level. "
Zhang Fengting, general manager of Xugong Excavating Machinery Division Marketing Company, said: "At present, the global epidemic prevention and control is still at a critical stage, the negative impact on the excavator industry chain is becoming increasingly prominent, the supply of supporting parts is tight, and the production cost is increasing significantly. In addition, the market The price of small digging sales is generally low, and there is basically no profit. China's ambition for high-quality development will not be relaxed at all due to the delay of the epidemic. We are committed to advocating healthy and sustainable development, sharing high-quality development results with customers, and sharing national economic construction. Heavy duty, carefully decided to increase the price of the excavator. "
Long Jucai, deputy general manager of Shanhe Smart, said: "Shanhe Smart is also forced to increase the price of excavators. First, the previous price war has left companies and agents with little profit margins, especially small and micro-digging. If the price is not raised again, it is related to To the survival problems of many excavator companies and agents, I think this is the core reason for this price increase; secondly, it is also a well-known reason. Due to the global epidemic, the supply of core components for excavators is very tight, and manufacturers are facing out of stock The situation, especially the tight supply of goods by May, will be more prominent, which is also a very important factor in this round of price increases. "
Shan Baoyu, deputy general manager of Shandong Lingong Marketing Co., said: "At present, foreign epidemics are becoming increasingly serious, which has a major impact on the global construction machinery industry chain, the supply of core supporting parts is tight, and the production costs of enterprises continue to increase. Follow the concept of healthy and sustainable development After careful consideration in many aspects, Shandong Lingong decided to adjust the price of excavator and loader products. Shan Zong continued to analyze "In the last round of price war, the agents had no profit. It said that it will be actively implemented. In the long run, the price increase is the general trend, and the price increase has a positive role in promoting the entire construction machinery industry ecological chain. "
The person in charge of Shantui Excavator said: "The negative impact of the global epidemic on the supply chain of excavator support is profound. Our production costs are increasing day by day. To ensure that we can provide customers with high-quality products and high satisfaction services as always, After careful consideration in many aspects, it was decided to increase the product price.
The relevant person in charge of Yuchai Heavy Industry said: "Yuchai Heavy Industry has always insisted on product value-oriented, and the original intention of continuously providing high-quality products for users cannot be changed. Therefore, when the industry price wars are rising, we are still constantly Adhere to the price system. For this excavator industry price increase, I think the essence is a rational return of the excavator industry price (the price has basically returned to the level of the first half of 2019 after the price adjustment). "
Talking about the reasons for the price increase of Yuchai Heavy Industries, the person in charge explained several factors:
(1) Affected by the global epidemic situation, the shortage of key parts and components and uncertain delivery times have led to an increase in production and operating costs;
(2) The price adjustment decision made by the enterprise from the perspective of peace of mind. Starting from March to April this year, a series of policies and projects under the "new infrastructure" have been implemented. The excavator market has seen a "retaliation" rebound. Excavator supply is in short supply, but how long can this strong stimulus last? There are still many uncertain factors in the market in the future, and we should accumulate energy at this time to maintain the healthy and sustainable development of the enterprise;
(3) From the perspective of agents, the previous price war has overwhelmed many agents. To ensure their survival and development, price increases are also imperative;
(4) From the customer's perspective, the previous price war has greatly depreciated the residual value of many equipment in their hands; especially for users who have purchased equipment in the past year, the continued price war has caused the profits brought by their investment in equipment to be consumed Therefore, many customers are still willing to accept and support the price increase!
When domestic excavator prices increase, will foreign-brand excavator prices also increase? Based on the information currently available to us, Caterpillar, Japanese and other excavator brands have no intention of increasing prices for the time being. A Japanese brand agent said that in the past few years, their brand has not participated in the price war, and the price has been very stable, so the current price increase is unlikely, and it will continue to follow the previous sales price.
How does the agent react to the price increase?
As labor costs and operating costs increase, how do agents react to price increases?
Zhou Chijun, chairman of Hefei Xiangyuan, said that Xiangyuan solemnly declared to the industry: "The price increase of the full range of excavators launched by Sany this time has been carefully considered. As an agent, we firmly support the price increase of manufacturers. Xiangyuan will strictly implement the new price like other agents of Sany Excavator, and also hope that colleagues in the industry will supervise!
In an interview with Sany Jiangxi first-line excavator sales staff, the strong execution of Sany agents' implementation of the price increase policy was confirmed. "If we now sell a 10-ton excavator, it will be at least 10,000 or 20,000 more expensive than the price sold recently. The company has not allowed to sell at the previous price." The salesperson said that although the price has Soaring, but he believes that Sany Digger still has a strong competitiveness in the market.
The head of an agent of XCMG Excavator Northwest said that we are very happy to hear the news of the price increase of the excavator. After all, the agent is in a difficult situation. We will pay attention to observe and pay attention to the actual prices of products sold by other brand agents, if everyone's prices are indeed rising. Then we will also resolutely implement this price increase notice. As the main brand of the industry, we have the responsibility to take the lead in raising the entire price of the excavator industry and return the market competition to a sustainable development state.
Relevant leaders of Shandong Lingong Jiangsu agent said: "Lingong excavation opportunities seriously implement the policy of price increase of excavators. Everyone knows that high prices are damaging to consumers, but people do not understand that low prices can also cause harm. The price increase of the excavator is not simply to pursue profits, but to return the price of the excavator to the normal state, so that the customers who buy the excavator are guaranteed, and the customers who use the excavator enjoy the best service!
The relevant person in charge of Wuhan Maxima said in an interview that Doosan headquarters does not have a clear price increase plan. However, as an agent, Maxima now sells little digs with little profit, even the more it sells, the more it loses! After careful consideration, the company decided to increase the prices of products and services of its co-branded products. This move is to build a community of shared future for the industry and maintain the healthy development of the industry.
How to choose when the price rises?
So, for the price-sensitive domestic excavator market, what is the user's attitude towards excavator price increases? To this end, China Road Machinery Network also interviewed users in some major areas to listen to their voices.
Excavator users have mixed views on price increases
President Luo of the Hubei Jiyou Club: "I think the excavator price increase is a good thing for me, because it not only raises the industry entry threshold, but also indirectly increases the value of my existing equipment. This time the price increase is within the normal range. If the project requires additional equipment, which brand should I buy? Which brand will I buy? The price increase has little effect on my purchase. "
Mr. Yang, Shandong Machinery Friends Association: "The price increase has little effect on himself. The excavators currently owned are basically foreign-owned brands with large tonnage. I have always felt that the performance of foreign-owned brands is more reliable and more popular in the second-hand market. Second-hand residual value has also gone up, and I will consider supporting domestic brands again! "
Boss Huang of Jiangsu Jiyouhui: "If you buy a small-tonnage excavator, among the big domestic brands such as Sany, Xugong, Lingong, Liugong, I prefer some brands, but if the difference in tonnage is about 30,000, I I will choose a more affordable one, after all, the quality is good, and the gap is not big. But if it is a large-tonnage excavator, I will not pay attention to the 5% price increase. In the end, I will still mainly focus on operating efficiency, fuel consumption, and stability. , Services and other comprehensive aspects to choose. "
Boss Wang of Henan Jiyouhui: "I am very concerned about this price increase. In my opinion, after the price of the excavator is lowered, it should not be raised back. If I want to buy new equipment, I will most likely buy a joint venture that does not increase the price. Brand. "
Mr. Xu, Beijing Machine Friends Association: "I think it is acceptable to excavate a reasonable price increase. If you want me to choose between excavator brands with and without price increases, my choice will be a brand with a high residual value of used equipment, because Buying an excavator should not only consider the initial purchase cost, but also consider the circulation and disposal of second-hand equipment in the later period. "
Boss Wang, Liaoning Jiyouhui: "I support price increases. It's better to increase the price. I hope the entry threshold will be higher. If I want to sell the equipment in my hand, the price will be higher. To be honest, the excavator industry now The competition is too fierce, the money is really hard to make, and excavators are everywhere, but there are not many projects before. I hope that the price of excavators will increase and improve the current situation. "
Boss Chen of Guangdong Jiyou Club: "Zhongda Di personally prefers Japanese brands such as Hitachi, Kobelco and Sumitomo, so I may not buy domestic products after the price increase. If the price is not increased, 6 tons or 8 tons I ’m very interested in buying the domestic brands with the most excavators in the market because of the easy maintenance and the high residual value of second-hand. But now the price increase is not easy to say, if Korean brands do not follow the price increase , I should buy Korean brands. "
Boss Cui of Shanxi Jiyou Association: "Last year, the price of the excavator was reduced to that, and not many new excavators on our side sold. In this market, the excavator is still selling at a higher price. I guess it ’s even harder to sell! I have no plans to buy new equipment, so whether the price increases or not will not affect me much. "
In addition, Maxima's supply chain accessories and maintenance service fees have also been increased by 10%.
What impact will the increase in excavator prices have on domestic infrastructure construction?
1. Affect the construction progress
It is reported that most of the excavators are purchased by individuals and then followed in the construction of the project. At present, the price of small excavators has increased by about 10%, which means that an original excavator with a price of 500,000 to 600,000 yuan will be purchased by more buyers after the price increases. The price of -60,000 yuan is for purchase, or the buyer who intends to replace or newly purchase an excavator waits and sees to stop and reduce the amount of excavator on the construction site, which indirectly affects the construction process.
2. Increase the unit cost of infrastructure construction
As the price of construction machinery increases, the production costs of construction enterprises increase, and these production costs are invested for infrastructure construction, which increases the unit cost of infrastructure construction.
3. Or increase the accident rate
Due to the increase in construction machinery prices, enterprises originally replaced or newly purchased machinery to reduce or wait and see, so that the machinery that was originally planned to be eliminated or repaired was forced to continue to be used due to the construction period, or the accident rate increased.
In the context of the global spread of the epidemic, infrastructure as a pure domestic demand industry will be the focus of policy efforts. Recently, domestic fiscal and monetary policies have continued to increase, social integration has accelerated, and the trend of accelerated infrastructure has become very obvious.
The focus of the future is expected to be in investment related to poverty reduction: the construction of high-speed railways in the central and western regions; intercity transportation (railroads, highways, airports) to promote regional development strategies in recent years, such as Beijing, Tianjin and Hebei, the Greater Bay Area, Chengdu and Chongqing Circle, integration of the Yangtze River Delta, etc .; water / energy / environment related infrastructure investment; rural infrastructure investment and public health and sanitation investment, etc.
In 2019, the sales volume of the pump truck industry is close to 8,000, and the market has 55,000 concrete pump trucks, 70% of which are National 3 products sold in the first half of 2009-2013. A large number of stock pump trucks in the market are facing replacement. The growth rate of the pump truck industry will still maintain 15-20% growth.
The capital market is more enthusiastic about the sales performance in March. After the domestic stock market opened lower on February 3, with the improvement of the domestic epidemic situation, it has gradually come out of the haze. However, the stock market fluctuated as the foreign epidemic turned sharply. The brilliant data of the excavator was released in March and was sought after by many securities research institutions. After all, besides medicine, it is rare to have such a good theme.
