From the perspective of the panoramic deconstruction of the industrial chain of the construction machinery manufacturing industry
Construction machinery is an important part of the equipment industry. In a nutshell, all mechanical equipment necessary for comprehensive mechanized construction projects required for earth and stone construction projects, road construction and maintenance, mobile crane loading and unloading operations, and various construction projects are called engineering machinery. With the stimulus of increasing infrastructure investment, the demand for construction machinery has increased significantly, and it has also promoted the continuous development of my country's excellent engineering equipment manufacturing enterprises in the direction of internationalization, scale and integration. my country has become a world construction machinery manufacturing country.
From the perspective of product categories, my country has a wide variety of construction machinery and is one of the countries with the most complete product categories and product varieties in the world. It has 20 categories, 109 groups, 450 models, 1090 series, and tens of thousands of models. equipment. It is precisely because of my country's complete categories of construction machinery and outstanding advantages of serialization and complete sets, it provides construction machinery equipment guarantee for the country's economic construction.
From the perspective of the industrial chain, the upstream of the construction machinery industry mainly provides raw materials and parts for the manufacture of construction machinery products, the electrical machinery industry and the parts manufacturing industry, such as steel for construction machinery, internal combustion engines, hydraulic systems, bearings, tires, etc. . The midstream includes different types of construction machinery manufacturing companies such as excavators, cranes, road rollers, and bulldozers;
The downstream are mainly industries that have a demand for wires and cables, such as infrastructure construction, real estate, mine excavation, cement, and rural construction.
The construction machinery industry has the characteristics of diverse equipment products, discrete production processes, and complex supply chains. It faces industry pain points such as low equipment value appreciation, low supply chain resource allocation efficiency, and imperfect financial ecology. It urgently needs to accelerate digitalization based on industrial Internet platforms. The pace of transformation is to comprehensively improve the digital level of R&D and design, manufacturing, supply chain management, remote operation and maintenance, and customer service.
Domestic companies such as Xugong Group, Sany Heavy Industry, Zoomlion Heavy Industry and foreign companies such as uptake use remote operation and maintenance as the entry point, and Komatsu of Japan uses smart construction as the entry point to accelerate the promotion of the construction machinery industry to intelligent and integrated solutions for equipment maintenance The "turnkey" direction accelerates the transformation.
After the vigorous development of China's construction machinery manufacturing industry, the market will enter a stock era of fierce competition
The transformation trend of the construction machinery industry with the digital wave has derived more abundant platform application scenarios and more detailed business landing solutions. This is related to the current status of the stock market and is also affected by the overall industry situation.
According to the forecast of Off-Highway Research, China's construction machinery market will experience a cyclical decline in 2021-2023, but it is not expected to be as severe as the decline in 2012-2016. Therefore, based on historical data, forward-looking forecasts that the operating income of China's construction machinery manufacturing industry will reach about 737.9 billion yuan in 2025. Although great efforts will be made to maintain growth, the fact that domestic companies have grown vigorously in the past few years cannot be ignored.
Global level
China's construction machinery manufacturing sales accounted for increasing year by year
Starting from the end of 2019, the global construction machinery market has entered a downward phase from the highest point of this cycle, and demand in mature markets in Europe, America and Japan fluctuates; at the same time, China's construction machinery industry continues to maintain rapid development. With the continuous upgrading and transformation of the industry, the continuous expansion of the high-end market, the strengthening of innovation capabilities, and the in-depth popularization and application of intelligent, digital, and information technology, Chinese construction machinery manufacturers have maintained a strong growth momentum and further improved their operational quality.
From 2018 to 2019, there was a peak in the construction machinery industry, each exceeding 1.1 million units. According to a report by OffHighway Research, due to the impact of the new crown pneumonia epidemic in 2020, it will drop to 891,000 units in 2020, a year-on-year decrease of 19%.
According to the 2020 ranking of the top 50 global construction machinery manufacturers published by the British KHL Group's "International Construction" magazine, global construction equipment sales reached 202.7 billion U.S. dollars in 2019, exceeding 200 billion U.S. dollars for the first time; and 2018 An increase of 10% compared to the year.
Although global construction equipment sales hit a record high in 2019, the growth rate is slowing. According to data from YellowTable, 2017 has increased by 25.5% compared to 2016, and the growth rate in 2018 was 13.5%. Affected by the new crown pneumonia epidemic, global sales will drop sharply in 2020. Judging from the changes in the top ten, Chinese companies have become the focus. XCMG, Sany and Zoomlion all rose. As Zoomlion squeezed into the top 10, Chinese companies occupied 3 seats in the top 10.
Domestic market
Although affected by the epidemic, the industry as a whole is thriving
In 2020, the total revenue of China's construction machinery industry will exceed 700 billion yuan. In 2019, the construction machinery industry, after five years of low development and rapid recovery and growth from 2017 to 2018, ushered in a stable development in 2019. At present, it is facing a more complex international environment and domestic economic downturn. In a situation of greater pressure, the construction machinery industry has taken advantage of stable and positive macroeconomics and sustained and stable investment in fixed assets, and the results of the industry’s transformation and upgrading have further appeared. The accelerated renewal of second-hand equipment in the market and the positive effects of air pollution prevention and environmental protection policies on the market , "One Belt One Road" construction to stimulate export growth, and the application of new technologies and methods in the construction field and other factors superimposed influence, the construction machinery market reappeared rapid growth.
According to statistics collected by the China Construction Machinery Industry Association, after deducting incomparable factors, repeated data, and non-construction machinery industry operating income, the entire industry achieved operating income of 668.1 billion yuan in 2019, an increase of 12% over 2018.
According to the data released by the China Construction Machinery Industry Association in September 2020, in the first half of 2020, 12 key construction machinery companies across the country completed sales revenue of 235.6 billion yuan, an increase of 17.3% year-on-year; the industry revenue growth rate is expected to reach 7% in 2020 To 8%. According to the association's relevant data and development status, forward-looking forecasts that the total revenue of my country's construction machinery industry will reach about 714.9 billion yuan in 2020.
According to industry statistics from China Construction Machinery Industry Association, from January to December 2020, a total of 327,605 excavators were sold, a year-on-year increase of 39%; of which, 292,864 were domestic, a year-on-year increase of 40.1%; and 34,741 were exported, a year-on-year increase of 30.5%.
From January to December 2020, a total of 131,176 loaders of various types were sold, an increase of 6.12% year-on-year. Among them: 122,969 loaders of 3 tons and above were sold, a year-on-year increase of 6.11%. The total sales volume in the domestic market was 106,572 units, a year-on-year increase of 8.63%; the export sales volume was 24,604 units, a year-on-year decrease of 3.55%.
According to the data of the company Chamao, during the twelve years from 2000 to 2012, the number of newly established enterprises in China's construction machinery manufacturing industry remained within the range of 20,000 to 100,000; since 2013, China's construction machinery manufacturing industry The newly established enterprises in the industry have shown a significant upward trend. In 2020, the number of newly established enterprises in China's construction machinery manufacturing industry is 1.196 million, an increase of 12.51% from the 1.063 million in 2019.
The concentration of competition in the domestic machinery market remains high, and the transformation of models and products is moving towards the outlet
From the perspective of market structure, the four commonly used engineering equipment of excavators, cranes, road rollers and bulldozers account for most of the shares in the construction equipment market in my country. Among them, excavators are the star products in construction machinery and occupy the absolute mainstream position in the market. , Sales in 2019 accounted for 57.84%; followed by loaders, accounting for 30.34%.
The domestic market competition pattern can be roughly divided into four echelons
Due to the economies of scale in the construction machinery industry, after more than 60 years of development, four giant companies have emerged. Sany, Liugong, Xugong Machinery and Zoomlion have revenues of more than 10 billion. Among them, Sany and Xugong Machinery revenue is more than 40 billion yuan, products are distributed in various subdivisions, the technological level is leading, many products have reached the international leading level, and all core businesses have been gradually realized online, all management processes are predictable, products are highly automated and management processes are highly advanced Informatization, open up communication channels for production materials, manufacturing equipment, and human resources (employees, agents, customers, suppliers, etc.), elevate management to a new level, and realize the interconnection and closed-loop control of the entire chain.
The second echelon is the potential force of my country's construction machinery industry. Under the background of intelligent manufacturing, the intelligentization of construction machinery is an opportunity for the development of these enterprises. The revenue scale is between 4-10 billion and has a certain degree of popularity. It has certain leading advantages in different fields, and can realize the highly flexible production of "product mixing + assembly line" in the production link, which greatly improves quality and efficiency and reduces costs.
The third tier is companies with revenues of 100 to 1 billion. Such companies are small in scale, have low product R&D investment, and have a certain reputation in a certain segment, such as Aili Precision, XGMA, etc.; The fourth echelon consists of many small and medium-sized enterprises, with high product homogeneity and low technical content, relying on price advantages to seize the middle and low-end product market.
It is difficult for each echelon to directly face the fierce competition in the stock market while maintaining the original ecology. The market demand for full-process and digital solutions has prompted four major evolution trends in the construction machinery industry:
On-demand equipment maintenance
Traditional preventive-based regular maintenance cannot effectively deal with potential or sudden abnormal failures, and will also cause many unnecessary disassembly and installation, resulting in excessive equipment maintenance and repair costs, additional running-in losses, and even new failures. Based on the industrial Internet platform, online collection of equipment performance, status parameters and other data information, after a series of statistical algorithms and analysis, can discover the health status and existing problems of the equipment in time during the operation of the equipment, and perform equipment maintenance according to demand, saving manpower and material resources. Ensure the efficiency of equipment operation.
Lean spare parts management
The traditional warehousing model can alleviate a certain amount of pressure on spare parts demand, but correspondingly, high warehousing costs including storage space, logistics allocation, and circulating funds are generated. Spare parts management is also required, which consumes manpower and material resources. The use of new-generation information technologies such as the Internet of Things, cloud computing, and big data to strengthen supply chain management can improve the efficiency of spare parts circulation, quickly respond to production and maintenance needs, real-time deployment, on-demand deployment, and intelligent deployment, thereby improving production and maintenance efficiency , Save cash flow.
Online integration of industry and finance
Due to the high unit price of construction machinery and equipment and the imperfect financial system of the industry, downstream small and medium-sized enterprises often have the problem of shortage of funds, which seriously restricts the development of the industry's ecology. Relying on the industrial Internet platform for equipment connection, data collection, and statistical analysis capabilities can realize transparency in the operation of manufacturing equipment, which is conducive to real-time assessment of financial institutions, control of financial risks, and online provision of fast financing and loan services.
Serving solutions
The technology, production capacity, and efficiency of my country's construction machinery industry have developed rapidly in recent years. In order to cope with the increasingly tight market environment and to respond to the upgrading and changes of user-side demand, the construction machinery industry is showing a trend of servicing the manufacturing industry, that is, to use products. Manufacturers are transforming into solution providers, extending from pure production and processing to providing equipment operation and maintenance, supporting business management decision-making, meeting personalized customization needs and other service links, increasing the added value of products and shaping the comprehensive advantages of the enterprise.
Smart factory architecture combined with SAP applications
Industry mainstream countermeasures and prospects for model update
In response to the fierce competition and the current situation of oversupply in the market, the revenue and profits of construction machinery giants that have experienced rapid growth for more than 10 years have declined. Simple design and production of products obviously can no longer meet the current competitive needs. Enterprises need to respond quickly according to the market and customer personalization. The new industry characteristics mainly include the following:
Industry characteristics
1) Construction machinery product levels are becoming more and more complex, the structure is huge, and the products are serialized, which belong to multiple varieties, small batches, and typical discrete manufacturing.
2) Production often requires predictive production and design and production in accordance with customer orders, and emergency orders often occur.
3) The procurement cycle is lengthened, and the assembly time and delivery cycle of the whole machine are difficult to guarantee.
4) The engineering design is iterated quickly, the product design/process version is many, and the program modification pressure is high.
5) The quality requirements are getting higher and higher, and it is urgent to realize comprehensive quality traceability management.
More construction machinery began to adopt a comprehensive system including product life cycle management (PLM), computer-aided design (CAD), application life cycle management (ALM), supply chain management (SCM), and service life cycle management (SLM). The plan lays out the market environment of the new era, so as to realize the collection, analysis and deployment of product information, so as to promote the strategy and dynamic decision-making process on which the success of the enterprise depends, and then realize the process transformation.
Xugong Group
Xugong Group has made many achievements in the field of Internet of Things construction, but the structural deficiencies of some of the traditional manufacturing industries have gradually been exposed, and they cannot meet the development needs of globalization and internationalization. Based on these shortcomings, XCMG launched a new generation of intelligent information service platform for the Internet of Things for construction machinery.
Sany Heavy Industry
Sany Heavy Industry's informatization has "three modernizations": digitalization of R&D and manufacturing, automation of business and services, and integration of finance and business. There is a huge server cluster in Changsha, which is connected to the electronic warehouses in Shenyang, Beijing, Kunming, Germany, the United States, India, and Pakistan through the WAN.
Liugong Machinery
Liugong's "Digital Liugong Innovation Project" project has completed the implementation of ERP and PLM, involving core business processes such as R&D, sales, production, procurement, and logistics. Informatization is completely integrated into the entire operation and production management process and has become the normal operation of the company. Strategic support.
Shantui Group
Through SLM, Internet of Things and other technologies to realize the collection of product information, and then use PLM to analyze and process these data, reduce design waste, shorten design cycle, further improve product design quality and efficiency, and unknowingly enable users to participate in product manufacturing process.
In the new market cycle, China's construction machinery industry faces the dual challenges of macro-market adjustment, internal development driving force and development mode switching, and the transformation of business thinking is the only way. Construction machinery manufacturing companies that can complete the transformation and face the challenges are facing opportunities such as the future One Belt One Road strategy, rural revitalization and regional development, coordinated development of Beijing-Tianjin-Hebei, and the construction of the Yangtze River Economic Belt, as well as the high-speed rail and highway infrastructure derived from it. Driven by construction, it will have a more flexible service plan, thereby gaining a broader space for development.
