Changes in demand brought by the new infrastructure will reshape the product layout of construction machinery companies. In the long run, the market demand for construction machinery will face comprehensive upgrades and changes, which will bring challenges to the current product layout of related companies and traditional growth models.
According to statistical data, the overall construction machinery after-market size is about 1.5 trillion yuan, including construction machinery leasing scale of about 580 billion yuan, the second mobile phone transaction volume is about 400 billion yuan per year, the supply of accessories is about 300 billion per year, of which excavator The proportion of accessories amounts to 40%.
China is different from overseas. The leasing market is extremely fragmented and there are many gray areas. The transaction of the second mobile phone is vulnerable to the impact of the new machine. On the other hand, the field of accessories continues to grow with the increase in the market of engineering machine stocks. There is enough space to have the opportunity to transform and upgrade through the Internet and grow a great company in the field of circulation.
This article is an excerpt from "Research on Construction Machinery Parts Industry" by Yu Fengtian, a junior partner of the Wutong Tree Capital VC team.
01 Development situation of construction machinery industry
(1) Overall scale of construction machinery
According to the statistics of the Construction Machinery Association, the sales revenue of China's construction machinery industry in 2017 was about 530 billion, which is one of the largest machinery subdivisions in China. In 2018, the sales revenue was nearly 600 billion, and the overall growth rate of the industry was 13%. Construction machinery is widely used in real estate construction, infrastructure construction, mining, national defense engineering construction and other fields, among which infrastructure construction, real estate construction, and mine construction have the greatest impact on construction machinery, accounting for 45%, 20%, and 20%, respectively. China currently accounts for about 20% of global construction machinery sales.
(2) Periodic characteristics of construction machinery industry
Summary: The construction machinery industry has obvious Jugola cycle characteristics, the time is generally 8-10 years.
When the entire economy is at the peak of equipment replacement, more fixed asset investment will be generated, which will drive the economy into prosperity; when the equipment investment is basically completed, the investment will fall into a trough, and the economic cycle will fall into a downturn. The replacement of equipment has been repeated over and over again, resulting in cyclical changes in capital expenditures, which eventually led to the Jugula economic cycle. According to the empirical data of western developed countries, the Chugra cycle is generally 8-10 years.
Over the past four decades, the construction machinery industry in the United States has kept pace with fixed asset investment. According to the division of NBER's economic cycle, there were 4 cycles from 1970 to 1982, all of which were relatively short, which did not match the Jugra cycle. Since 1982, the United States has experienced four economic cycles: 1982 to 1991, 1991 to 2001, 2001 to 2009, and 2009 to present, the duration of experience is 8.3 years, 10.6 years, 7.6 years, 9.9 years, From the perspective of fixed asset investment and the growth rate of construction machinery industry sales, it basically conforms to the judgment of the Jugra cycle.
(3) Laws of overseas development
Features: With rapid urbanization rate growth
In the 1990s, the demand for construction machinery in Japan, the United States and Europe accounted for almost 80% of the world's total demand. Around 1990, when Japan ’s bubble economy peaked, Japan alone accounted for 40% of the world ’s construction machinery demand, while Japan ’s population accounted for only 2% of the world ’s population.
In the 1990s, the reason why Japan, the United States and Europe had such high demand for projects was that the urbanization rate in Japan, the United States and Europe increased rapidly at that time. With the increase in the urbanization rate, infrastructure and real estate are booming, which has created a demand for construction machinery. By 1990, the urbanization rate in Japan had reached 63%, while the United States, Britain, and Germany all exceeded 70%.
(4) China's construction machinery industry is in the growth period
The development of China's construction machinery is related to China's industrialization and urbanization. After 2010, it is also related to factors such as mechanization, export promotion, and industrial transfer. Affected by the national five-year plan and the four trillion investment plan, the plan is relatively strong, and China's construction machinery industry cycle shows a certain degree of volatility.
At present, the overall industry is in a period of healthy competition after deleveraging. Supply-side reform to reduce production capacity, the industry has undergone deleveraging, and construction machinery is now becoming rational for both mainframe companies and distributors. Hosting companies no longer excessively pursue market share, and distributors have strict payment terms to avoid towing and legal disputes. Taking Sany as an example, the high point in 2011 was that the competition between Sany and Zoomlion deteriorated, payment terms were eased, the quality of operations deteriorated, and even mutual reports were reported, setting off a media battle. The competitiveness with concrete machinery has been established, and there is no longer any vicious competition in the industry.
02 Aftermarket of construction machinery
(1) The market scale of construction machinery
Conclusion: The amount of construction machinery and equipment is close to 8 million, and the after-market size is more than 1.5 trillion.
According to the statistics of the China Construction Machinery Industry Association, as of the end of 2017, the main products of China's construction machinery were about 6.9 to 7.47 million units; of which, 155.7 to 1.686 million hydraulic excavators, and 6.57 to 73.5 kw (100 horsepower) bulldozers 71,200 units, loader 149 to 1,614,000 units, grader 23,600 to 25,500 units, paver 21,2 to 23,200 units, road rollers 133,000 to 144,000 units, wheeled cranes 21.0 to 228,000 units, tower crane 39.4 to 427 thousand units, 2.464 to 2.65 million forklifts, 37 to 409,000 concrete mixing trucks, 62 to 67,600 concrete pump trucks, 55,800 to 60,500 concrete pumps, and 59,900 to 65,700 concrete mixing stations.
In 2018, the sales volume of China's construction machinery increased by 54.5% to 344,000 units; above all, the total number of construction machinery in China as of the end of 2018 was approximately 7.24-781 million units.
The aftermarket of construction machinery includes repair parts, equipment leasing, insurance, second-hand equipment trading, finance, etc., among which the market size of equipment leasing, second-hand equipment trading and parts is mainly up to 600 billion, 400 billion and 300 billion.
(2) Characteristics of the aftermarket of construction machinery
Conclusion: scattered! dispersion! dispersion! The main difference between China and overseas
1. Definition
The complete machine manufacturer, various overseas brand complete machine manufacturers and domestic complete machine manufacturers call it a lion. Lions are strong and are heavy asset investments. Take the excavator as an example. The investment of domestic lion and foreign lion is more than 30 billion yuan each. They are the source of construction machinery. Without lion, there is no construction machinery industry.
Manufacturers of so-called "sub-factory parts" of parts, small and medium-sized repair manufacturers, second-hand mobile phone refurbishment manufacturers, small household factories and other small and medium-sized enterprises call them rabbits.
1) Professional, dedicated, family-owned SMEs.
2) Have a certain amount of funds, equipment, technology and patent accumulation.
3) Flexible operation and quick response to market demand.
4) Infiltrating every demand link of sales service of construction machinery products, including penetration of Lion agents.
5) Provide and support parts, materials, information, logistics, intelligence, and funds for flying insects (loose alliance).
6) A considerable part is the OEM of the complete machine, supporting, processing and manufacturing enterprises.
7) Provide bulk parts supply for large terminal customers.
There are various names for individual management at each level in the industry, such as self-employed, traders, backpackers, selling materials, etc. They are everywhere and call them flying insects.
According to occupation classification: parts flying insects, repair flying insects, service flying insects, two mobile phone flying insects, manufacturing flying insects, etc., its characteristics:
1) Hard work and hard work; self-driven.
2) The number of people is huge, which is dozens of times that of similar staff in the post-lion market system.
3) The workplace and fixed asset input are flexible and flexible, and the input and output efficiency is extremely high.
4) A considerable portion of their professional skills are higher than those of similar agents in the Lion agency system
5) There is great flexibility in social security, tax payment, and insurance, and the indirect cost of economic behavior is extremely low
2. Status
With the rise of China's manufacturing industry, the trend of localization substitution has been continuously strengthened. The current market status of the three is as follows:
1) After the warranty period, more than 90% of on-site repairs and services are directly provided by flying insects and rabbits after the warranty period;
2) For the equipment sold by Lion, the sales volume of “original parts” for each single piece of equipment is lost by 40-90%, and the price of “original parts” drops by at least 30% -70%. Other parts completely lost sales opportunities and were completely replaced by rabbit products;
3) More than 30% of the sales parts of Lion Agents are "sub-factory parts", that is, rabbit products.
4) Many lions have to choose and accept rabbit supply.
5) All kinds of technical and service personnel cultivated by the lion have been lost in large numbers and joined the rabbit and flying insect groups.
3. Fragmented elements
1) Fragmentation of buyers
Take the excavator as an example. In the past ten years, the sales volume of new machines is about 2 million units. If it includes the sales of the whole machine 10 years ago and the second mobile phone imported in the past years, the market stock is about 3 million units, of which more than 95% are purchased by individual businesses.
2) Fragmentation of parts manufacturers
With the rise of China's manufacturing industry, about 10,000 parts manufacturers in the aftermarket of construction machinery are rabbits and flying insects. A considerable part of them have been transformed from the production of "sub-factory parts" to "original parts" manufacturers to complete equipment manufacturers, especially for domestic mainframe manufacturers.
3) Fragmentation of parts supply chain
Taking excavators as an example, there are about 20,000 rabbits and flying insects in the parts sales and supply chain, and more than 100,000 employees. About 80% of the supply of parts is supplied by non-Lion systems.
4) Fragmentation of after-sales repair and on-site service
There are about 300,000 flying insects of various types in engineering machinery repair and after-sales service nationwide. Among them, there are about 200,000 after-sale excavators, and about 90% of after-sales repairs and on-site services are completed by various repairs and services.
5) Fragmentation of mobile phone transactions
Taking the excavator as an example, there are more than 120,000 rabbits and flying insects in various types of mobile phones for excavators in the country, and more than 95% of the second-hand excavator transactions are completed by flying insects for mobile phones.
6) Fragmentation of the operator
The group of construction machinery operators is more than 10 million people, of which the excavator flying insects are about 2.5 million. Almost all of them are independent individuals without fixed workplaces, that is, the robot flying insects.
Based on the above, the total service personnel of domestic and foreign lions is about 35,000. The maximum service capacity of each of the after-market service personnel is 25 units / person. The lion's ability can provide after-sales service of about 870,000 units. More than 10% of the total market holdings, and about 90% of the remaining aftermarket services have to be provided by flying insects and rabbits.
4. Second mobile phone fragmentation and platform trading model
Conclusion: Second, mobile phone transactions lack platform elements (policies, standards, and lack of access to traffic at both ends)
The nationwide construction machinery second-handset transaction volume is above RMB 400 billion. The second mobile phone transaction involves three issues:
1) Decentralization of buyers and sellers
How to maximize transaction efficiency between decentralized equipment and decentralized buyers. 95% of the second mobile phones are in the hands of individuals, and the equipment is scattered in remote areas, so 95% of the transactions are completed through flying insects. It is difficult for the platform to form a competitive advantage in customer acquisition and service
2) Industry standards
Used equipment from the engine, hydraulic system, working equipment, wearing parts, etc., the situation is complex, difficult to judge. Relevant used equipment information, seller information, payment and other links need to be true and effective to eliminate fraud and fraud. If second-hand machinery and equipment are to become commodity transactions, a nationally recognized standard must be formed. This has not yet been completed in the field of second-hand passenger vehicles, and it is far from the time in the field of machinery and equipment.
3) The periodicity of second-hand equipment demand and price.
The buyer's motivation and acceptance of the choice of time to buy, and the seller's recognition of the price cycle of the second mobile phone, this leads to different buyers and sellers, the price of the same quality of the second mobile phone, the acceptance of the purchase and sale is very different, the range is 5 % -15%.
Second mobile phone transaction is not a commercial transaction method for standard commodities, and the need for commercial standardization for second mobile phone transaction is not a necessary and sufficient condition, and the important method of online trading platforms is to run by standardizing their transactions. Mobile phone platform trading volume is limited, and the national online second mobile phone platform trading volume is less than 5% of the actual market. The specific reasons are as follows:
1) In the trading of second mobile phones, hundreds of thousands of mobile phone bugs all over the country form hundreds of thousands of small circular business circles with WeChat, Kuaishou, Douyin, and Xiaowei platforms. The actual trading model.
2) The characteristics of the non-standardized transaction of the second mobile phone provide a large number of personal business opportunities for the middle and lower-level employees of the platform company, and legal profit-making methods, resulting in a large number of business losses and low profits of the company. The loss of offline business is a huge pain point for the Internet's second mobile phone company.
The characteristics of non-standardized transactions are precisely the advantages of flying insect trading, a high-profit profit opportunity. The fragmentation of the second mobile phone transaction provides both the flying insect and the customer with greater bargaining power, has a strong vitality, and is more suitable for the operation of the second mobile phone flying insect. Difficult to shape).
5. Fragmentation of leasing business and leasing company
At present, the national construction machinery leasing scale is close to 600 billion yuan. The vast majority of leasing companies are small, medium and micro enterprises, and more than 90% of the number are small rabbit-level companies and tens of thousands of flying insect swarms.
1) Fragmentation of ownership of leased equipment.
There are more than 7.5 million sets of engineering equipment nationwide, most of which are the property of flying insects or rabbits, especially earth-rock equipment such as excavators and loaders, and more than 95% of the property are flying insects and rabbits. Even if the initial centralized purchases of large companies, most of them will be traded into flying insects and rabbits after 3000 hours of work.
2) Fragmentation of rental companies
Taking earthmoving equipment such as excavator loaders and bulldozers as an example, there are about 800,000 leased rabbits with registered corporate actions, and the total amount of leased flying insects exceeds 1 million.
3) Manage fragmentation
The fragmentation of the equipment owner and the fragmentation of the operator have fragmented the construction management on site, the management is complicated and the management cost is increased, and a unified operating standard cannot be formed.
The existence of the above fragmentation is a restriction for lion-level leasing companies. Obviously, a large rental company like UnitedRental
(Thousands of equipment types and more than hundreds of thousands of units) The appearance in China may take a long time, and the actual situation in China is completely different from the benchmarking conditions in the United States.
United joint leasing situation
1) Market situation
80% of construction machinery in the US is in the rental market, and 10% of construction machinery rental companies have already gone public. The coverage of leasing companies is extremely wide, and there are leasing companies in every small town. The content of the lease includes not only the machinery and equipment itself, but also parts supply and after-lease services, highlighting a series of integrated services in the value chain.
In developed countries in Europe and the United States, a large proportion of the equipment produced by aerial work platform manufacturers is sold to leasing companies, and the leasing company has become an important participant in the aerial work platform market. On the one hand, these leasing companies represent the needs of the industry and purchase equipment from manufacturers; on the other hand, these leasing companies, in their dealings with end users, represent the supply of aerial work platform products on the market to provide customers with equipment. The leasing model in the European and American markets makes the market relatively closed. The leasing company controls the main circulation channels. At the same time, its large-scale procurement characteristics make manufacturers with large production scale and high brand awareness have a competitive advantage. Most of the market share is made by large manufacturers. Owned by commercial and large leasing companies, the competitive landscape is relatively stable.
2) Company situation
Founded by Bradley Jacobs in 1997, the company has since grown mainly through acquisitions. It provides general, air and special rental services to the client base of construction and industrial companies. In addition to leasing, the company also provides new and used equipment sales, maintenance and safety training. It is currently the largest equipment leasing company in North America, accounting for 11.4% of the market share in the region.
Established in September 1997, acquired 6 equipment leasing companies and owned 12 outlets;
In December 1997, the New York Stock Exchange was listed, and the IPO raised US $ 360 million in equity capital;
In June 1998, acquired 60 companies and integrated more than 400 branches;
In December 1998, there were 103 branches and 440 branches with an annual income of 1.2 billion US dollars
As of the end of 2018, the company's operating income was 8.047 billion US dollars, net profit was 1.096 billion US dollars, and the current market value was 8.685 billion US dollars. Equipment utilization rate is close to 70%; large customers account for 70%; occupancy rate is the first major problem in the equipment leasing business. The development of key accounts (Key Accounts), especially national customers (National Accouts) is an important means to increase the occupancy rate one. Key customers have brought long-term and stable cooperative relations, with revenue accounting for about 70%, which is the basis for the average URI equipment rental rate has been maintained at about 70%. It started with high-altitude equipment leasing and currently accounts for about 30%; it gradually expands to a full range of comprehensive engineering equipment. The general logic of the asset management business is to relocate general equipment, and versatility is directly related to equipment occupancy rate and disposal value. But the other side of the coin is that special equipment has a higher premium capacity due to its scarcity and can increase customer stickiness. Special equipment has a higher return multiple, especially for the trench safety business, the return multiple is as high as 8.8 times, almost double the overall average.
The proportion of suppliers is more concentrated, reaching about 55%.
In terms of income composition, in addition to leasing revenue, the company also has sales of second-hand phones and new phones; because the overall leasing market accounts for 80%, and head companies also account for a large proportion, there is no second-hand phone platform in the United States. From the perspective of accessories, the maintenance of equipment and the purchase of accessories are all included in the company's cost, so there is no accessory circulation platform in the United States. In terms of gross profit, the gross profit from leasing is comparable to the gross profit from the sales of second-hand phones, and the gross profit from new machine sales is lower. Taking the total cost of ownership (TCO, Total Cost of Ownership) instead of purchasing discounts as the decision criterion is closer to the true return. Total cost of ownership = acquisition cost + maintenance cost (including accessories and labor)-second-hand disposal value. The optimal total cost of ownership can avoid the trap of "pursuing short-term benefits."
6. Fragmentation of parts supply and platform supply chain
Conclusion: There are pain points, but it does not constitute a substantial obstacle
The annual demand for construction machinery spare parts is about 300 billion yuan. In order to solve the fragmentation of parts supply, a platformized Internet company has appeared. Its pain points are:
1) Uncertainty about the sustainable profitable business model with the S-end (supply), that is, how the platform and the model of manufacturing rabbits and flying insects, including trading with lions, are formed.
2) Uncertainty about the solution of the last mile, 2C or 2B is still 2 (small B), that is, how the platform and the B-level bunny big flying insect still form the service method for the most end users.
3) Extremely complicated product categories: different brands, different models, different update years, different original parts / sub-factories / dismantled parts, conservatively estimated that the SKU of accessories is at least 10 million
4) The establishment of a spare parts database and spare parts warehouse requires huge sources of funds.
03 Industrial Chain of Construction Machinery Parts Market
(1) Industrial chain
Conclusion: Domestic substitution (80% domestic substitution ratio) brings opportunities; replacement of intermediate links needs to consider stocking and accounting issues, supply chain finance has opportunities; need to complete the SKU electronic catalog
Accessories manufacturer (10,000+)
-Features: many, mixed, chaotic
-1400+ equipment brands, 30,000+ equipment models, 3 million + saleable SKUs
-Supporting production and industrial clusters around OEMs
-Except for core components, there is almost no brand concept
-The pain point is the incremental market
Dealer session (13,000-15,000)
-Agents generally do distribution in a vertical category, the number of agents is relatively small, most of them are integrated dealers;
-Comprehensive distributors are generally provincial-level, and then down to retail stores; large distributors have hundreds of millions of sales a year
-Comprehensive distributors serve both retail stores, repair shops, backpackers and owners
-The opaque price of the entire distribution link is obvious, lack of service
- Pain points:
a) Low turnover rate, generally once a year, and high inventory pressure;
b) Because sales are very professional, they rely heavily on experienced employees and rely heavily on people;
c) Regional sales, generally covering 100 kilometers around, unable to operate across regions;
Accessories retail stores (tens of thousands)
-Universal income scale of millions
-Low inventory, the main spare parts are wearing parts and maintenance parts.
-The advantage is close to customers, high service efficiency
- Pain points:
a) The account period is generally up to 1 month account period, depending on the situation next month, some old customers have a long account period, which is settled 4 times a year, and generally need a month of advances
b) Difficult to expand
Maintenance plant (20,000)
-Small-scale income of 3 to 5 million per year, 70-80% of the amount; medium-sized income of about 10 million; large-scale income of more than 30 million;
-Mainly get goods from provincial distributors, mostly repair parts
-The accounting period is slightly better than the store, because it is a maintenance service, it is more urgent
- Pain points:
a) A single procurement channel makes it difficult to complete the category;
b) Inquiry and adjustment of goods in multiple places, time-consuming, low efficiency, manual confirmation error rate of 15%, difficult to match
Backpackers (200,000+)
- Freelancers;
-Service owner, professional skills, even more than the original factory system;
-Working hours income + accessories difference income
-Pain point: make more money
Equipment owner (millions)
-There are 3-5 backpackers or repair shop services, relatively fixed
-55% purchase directly by themselves, 45% will purchase through backpackers and repair plants (compared to 30-40% of the vulnerable / repair parts, about 20-30% of the purchase of repair parts will be purchased by themselves, that is, backpackers inform the office The model is required, the owner purchases it himself)
-High service efficiency for repair parts
-80% will choose sub-factory parts. Komatsu, Carter and other overseas OEMs also have factories in China. Except for a few core components that are imported overseas, most of the motors and hydraulic valves are also domestically substituted.
- Pain points:
a) Single purchase channel, price
b) Long borrowing period of the engineering party
(2) Cut-in mode selection
Very difficult
Because the upstream is dispersed, there is no way to integrate horizontally from the factory side.
2. Alternative dealers and retail stores
Heavy mode-the highest operating barrier, patience against Baturu in the automotive aftermarket, requires patience;
The consumables and maintenance parts are prepared by themselves and penetrate the terminal's repair shop or owner through the storage. Because there are so many SKUs and the inventory turnover is slow, there is no way to do it in a self-operated model in the early stage. It can only be placed in the central warehouse of the platform through the consignment model, and then the front warehouse is built around, similar to the four major American cars. The model greatly improves service efficiency.
Advantage:
The maintenance parts are self-operated, the cash flow turnover is relatively fast, and there is an opportunity to establish a channel brand; the maintenance parts transaction is highly certain, there is no need to find parts, and there is no need to back up inventory; there is an opportunity to do supply chain finance; insurance channel income;
Disadvantages:
The investment is large, not only to build a warehouse, but also in the early stage of the process of putting SKU online, it also requires a certain investment;
Whether the mode of consignment sale still needs to be verified (Baturu can work, consignment goods only account for 5-10% of dealers ’inventory, the good news is that capital also recognizes, the latest round of this year, CICC, Xiamen Jianfa, etc.); BD is difficult, it is more difficult to find the owner and the repair plant, and rely on word-of-mouth communication;
3. Alternative retail stores
Medium-heavy model-Kangzhong benchmarking the automotive aftermarket
Alternative service stores also require warehousing depth to enhance service efficiency. At the same time, opening a store to shorten the distance with customers, the model has its own store opening and joining.
Advantage:
Fast cash flow turnover, opportunity to establish channel brand; insurance channel revenue; high operating barriers
Disadvantages:
Large investment; low gross profit; slow shop opening by yourself, difficult to control the franchise model
4. Enabling upstream and downstream modes
Light mode-benchmarking the aftermarket car through the cloud, from light to heavy
Grind the commodity information database in the early stage to turn the SKU into a commodity that can be traded online; in the mid-term matching transaction, the upstream and downstream are not opened, the upstream is shipped to the platform, and the platform is shipped to the downstream; the later is the self-operated transaction
Advantage:
The earlier period is relatively light, and the survival risk is low; the early transaction is not cut, and it will not cause industry resistance
Disadvantages:
It's not easy to do something light; the early operation barriers are not high
5. Integrated repair shop model
Emphasis mode-benchmarking automobile aftermarket Huasheng
Some excellent maintenance factories in the region began to refine and chain-operate, forming a regional chain, analogous to Huasheng in the automotive aftermarket, with 240 national chains.
Advantage:
High barriers; high gross profit
Disadvantages:
The development speed is too slow, Huasheng has been doing it for nearly 20 years
to sum up:
Relatively speaking, the second type is more optimistic, namely the development of warehouse allocation mode.
First, in terms of the proportion of SKUs, repair parts account for about 70%, which is a more important category (50-60% of passenger car vehicles year-on-year);
Second, the maintenance parts of construction machinery are more urgent (in the case of medium-sized excavators, for example, the daily loss is as high as 4,000 yuan), so the demand for warehouse allocation will also be higher, and transaction efficiency is very important;
Third, from a capital point of view, the passenger car Kangzhong is relatively large, and the large flow platform has the need to integrate resources to C, but there is no possibility of to C in the field of construction machinery;
Fourth, the integrated repair plant lacks the most scale effect, requires a very long development cycle, and is not suitable for VC investment.
In summary, it is recommended to focus on the development of the "Baturu" model of warehousing to enhance the efficiency of industry transactions.
(3) Cutting direction-excavator accessories
Conclusion: Excavator, the jewel in the crown of construction machinery
Because the supply chain of construction machinery accessories is very professional, dealers and stores generally only deal with one category of construction machinery accessories. Among many types of construction machinery, excavator accessories are undoubtedly the category with the largest market share.
By replacing different attachments or fixtures, the excavator can perform earthwork excavation and loading, as well as land leveling, slope repair, hoisting, crushing, demolition, trenching and other operations. Excavators have the functions of bulldozers, loaders, cranes, etc., and have a certain alternative to other construction machinery, especially loaders. In 2004, the sales ratio of excavators and loaders in China was 0.28: 1. By 2016, the proportion had risen to 1.05: 1, considering the unit price difference, the corresponding excavator to loader sales ratio is around 2: 1.
However, the low unit price of the loader is better and the loading performance is better. The replacement of the excavator with the loader is limited. After a certain period, the ratio of the excavator to the loader will tend to stabilize. Taking the mature market of Japan as an example, the excavator and the loader The domestic sales ratio remained basically around 3: 1. In 2017, domestic excavator sales accounted for about 35%.
In 2018, the average operating rate of excavators was 67%, which is equivalent to 2 million of the 3 million stocks. The average annual spare parts and maintenance expenditure of an excavator is 60,000 yuan. The total volume of the excavator market is 1,250 100 million yuan, accounting for 41.6% of the overall construction machinery.
In summary, it is recommended to focus on cutting in with excavator parts and focus on developing supply chain platform companies with warehouses.
