The 2021 China Construction machinery marketing & Post Market Conference officially kicked off on November 29. This conference gathered highly influential people in China's construction machinery industry, built a high-level communication platform, focused on "adhering to axiom", discussed many opportunities and challenges in the process of adhering to it, and contributed valuable and knowledgeable wonderful exchanges, in-depth collisions and solutions, Together with my colleagues, I will observe the current situation and look forward to the future.
In 2021, China's construction machinery industry will develop well and it will be difficult. This era not only gives the construction machinery industry the opportunity to flourish, but also faces challenges such as uneven development of all parties in the industrial chain. The overall high-quality development of China's construction machinery needs to shape and give play to the core values of all parties. Therefore, the organizers of 2021 China Construction machinery marketing & Post Market Conference specially planned this summit dialogue with the theme of "adhering to axiom", in order to help China's construction machinery industry open an innovation Bureau in the changing situation.
The summit dialogue was presided over by Fu Yaosheng, CEO of lixingxing machinery group. The dialogue guests were Qi Jun, honorary president and special consultant of China Construction Machinery Industry Association, Wen Wu, vice president of Guangxi Liugong Machinery Co., Ltd., Zhou chijun, chairman of Hefei Xiangyuan Construction Machinery Co., Ltd., Chen Tianyu, CEO of Anhui xiansong Construction Machinery Service Co., Ltd. and Hitachi construction machinery (Shanghai) Cheng Xiaoming, managing director of the company (online).
2021 China Construction machinery marketing & Post Market Conference
"Summit dialogue" part I insight pattern
In the first theme of the summit dialogue, "insight pattern", as representatives of the association, manufacturers, agents and technical service providers, Qi Jun, Cheng Xiaoming, Wen Wu, Zhou chijun, Chen Tianyu and other dialogue guests had a full dialogue and collision on the current and future competition pattern, challenges and opportunities of the industry from their respective perspectives.
Fu Yaosheng: 2021 is the first year of the 14th five year plan, and there are still many uncertainties in the internal and external environment of the industry. At the beginning of the 14th five year plan, what new impacts do you think China's construction machinery industry will usher in? What new challenges will it face?
Qi Jun: in the first quarter of 2021, the whole product sales achieved good results. In April, we felt that the market collection was affected, and the overall situation was not expected to be so good. The reason was that the price rise of bulk materials had a great impact on the construction machinery industry. Coupled with the epidemic situation, the logistics has also been affected. Some measures taken by the state and the central government, including local power rationing in the second half of the year, have also had a certain impact on the industry. In this case, relatively good results have been achieved from January to October 2021. From the 12 products counted by the association, the overall number of products increased by 33% from January to October. Among the 12 products, the cumulative year-on-year growth of two products was negative and that of 10 products was positive. From the figures of 12 closely related enterprise groups, the growth rate is far greater than that of the industry. From January to October, the sales revenue reached more than 480 billion, an increase of 26%, and the overall profit margin is almost 8 percentage points. I personally believe that this year, with the support of the national economic policy and some measures taken by the national policy and the national government, our construction machinery industry will also usher in a relatively good growth.
Fu Yaosheng: changes in the general environment will directly affect all aspects of the industry chain. Please judge the opportunities and challenges of the industry from the perspective of your industrial role?
Cheng Xiaoming: personally, I think there are probably six key words to look at the opportunities and challenges of our industry. The first key word is intelligence. From industry 4.0, the manufacturing industry needs intelligence, and the client also needs intelligence, such as the integrated deployment management of some machines. The second key word is electrification. Electrification is imperative. There will be a great breakthrough in electrification in about three years, and electrification, in my opinion, is that some game rule changers have brought great opportunities. The third key word is leasing. From the client side, as the collection cycle is getting longer and longer, and the utilization rate of machine time is relatively low, we will inevitably move towards operating lease like the international market. The fourth is the diversification of circulation channels. In the future, we will see the rise of e-commerce, the so-called open platform at the sales end and some service platforms. The fifth point is internationalization. Domestic brands must take the road of internationalization. For foreign investment, we need to pay attention to the utilization of domestic supply chain. The last key word brought by the above changes is the acceleration of industry integration.
Civil and military affairs: 2022 must be a year of challenges and opportunities. The cyclical change of the industry is a law, and the downward trend is inevitable, which brings us challenges. When the capacity of the whole industry shifts from the incremental market to the stock market, the competition will be more and more intense. The second is the dual control of energy consumption, which has a great impact on us. The limited supply of energy and insufficient power supply, coupled with the limited capacity of steel energy consuming enterprises, as well as the high price of raw materials and the uncertainty of the epidemic situation, will have a great impact on the operating volume of downstream industries.
Of course, I think there are still great opportunities. National rural policies, accelerated urbanization and carbon neutralization will play a good role in promoting construction machinery. In the future, monetary policy, real estate regulation policy and fiscal policy will be conducive to promoting economic growth. Green emission reduction is a new direction for the transformation and upgrading of the industry. The switching of national four products will certainly trigger a new round of replacement of old equipment. The trend of digitization, electrification and intelligence will certainly bring a very strong driving force for our new round of growth.
Zhou chijun: 2021 will be an extremely helpless and even embarrassing year for agents across the country. At present, the competition of brands is the competition of the industrial chain. In the competition of the industrial chain, both upstream supporting suppliers and downstream agents are indispensable and effective links in the supply chain. The industry situation is very good, and the agents have worked hard to support it. At this stage of development, it has reached a critical moment of life and death. As far as this phenomenon itself is concerned, I think it is extremely abnormal. The problems reflected behind it are not only a focus issue, but also a difficult issue of this meeting.
For the current dilemma, I hope you can resist the darkness before dawn, fight for rights and interests, and stick to it. This sentence still exists because construction machinery is not a fast-moving product. It needs in-depth end-to-end service. Our agent has its own value and is indispensable.
Looking forward to the "14th five year plan", in the midst of the great turmoil in the industry, we also see many opportunities, and more industry enterprises may be listed. The capital market has a more supervisory role for our whole industry. If the leading enterprises in the industry become listed companies, the rules of the whole industry will be reshaped. I believe that the ultimate future of our industry is to return to the enterprise value, which can be measured in the capital market.
Chen Tianyu: I think the expansion of stock market in 2021 is the best time period for post market pure service enterprises. As a service-oriented enterprise, I appeal to integrate peers and backpackers, strengthen cooperation with agents, and even pay attention to the target needs of the main engine factory. According to our statistics, the shutdown rate of excavators with more than 70t this year is 26.4%, and 73.6% of the monthly working hours reach more than 300h. For our pure service-oriented enterprises, there are great opportunities. Opportunities are won't wait. The only thing in the world is not to break quickly. Pure service-oriented enterprises must understand customer information, equipment information, agent information and host factory information, that is, continuously cultivate within the service range.
