Where is China's Construction Machinery Enterprises "Going Global"?

At present, the internationalization of domestic construction machinery companies is a foregone conclusion, and this trend is still accelerating. According to the statistics from the China Construction Machinery Trade Network, the export of excavators from January to August this year increased by 54.71% year-on-year, 76.62% of loaders, 62.18% of bulldozers, 12.92% of road rollers, and 48.67% of truck cranes. Not only that, the powerful domestic construction machinery companies have also truly achieved “going out” and have started investing and setting up factories abroad. However, in the context of this "international" market, we should celebrate this toast, or should we seriously think about how the future "going out" road can be?

On the surface, Chinese construction machinery companies have taken a promising step in the “going out” process. However, from the aspect of import and export flows, more than 80% of export products have flowed to underdeveloped regions or developments in West Asia, Central Asia, South Asia, and Southeast Asia. In China, more than 90% of imported products come from developed countries or regions such as Europe, the United States, and Japan. This structure of imports and exports highlights the lack of confidence in China's construction machinery companies, because there is still a certain gap between us in terms of product technology and performance. Of course, there are exceptions on some products, such as Sany's concrete equipment. In 2010, statistical data of the world's concrete machinery industry published by Yengst, a well-known construction machinery market research institution in the United States, showed that Sany Heavy Industry ranked first in the world with annual sales of concrete machinery of US$2.72 billion. This is also Sany Heavy Industry has surpassed Germany's Putzmeister in 2009 and won the second world champion in this field. At present, domestically-made pump trucks represented by Sany have completely replaced imports. Sany has become the world's largest concrete machinery manufacturer and the world's largest pump truck manufacturing base.

Of course, China's export of construction machinery products also has advantages. Analysts of China Construction Machinery Business Network believe that the advantages are mainly reflected in the following aspects: (1) labor-intensive products, such as spare parts for construction machinery; (2) mature technologies Products, such as bulldozers, concrete mixers, etc.; (3) products with competitive prices, such as forklifts, loaders, vibratory rollers below 18 T, etc.; (4) technology introduction and foreign joint venture products such as hydraulic excavators, Truck cranes and so on. For products with different advantages, different competition strategies should be studied for different foreign markets so as to target and expand exports.

Layout of Europe and the United States market is a small number of companies. The strategic development needs from the perspective of the global market. The European and American construction machinery market is the most developed, but Europe and the United States have very high requirements for safety and environmental protection. They must obtain various certifications, such as safety certification, emission certification, and so on. With high technical barriers, the cost of investing in European and American markets is high. Analysts of China Construction Machinery Business Network believe that currently domestic companies are generally small in size, their capital and technical strength are not strong, and there is a shortage of talents in transnational operations. The operating mechanism of enterprises is also far away from international standards. If you enter the markets of developed countries, you have to Is no different from the sheep into the tiger's mouth. Of course, several powerful domestic companies are advancing into the most competitive developed country markets, which are the needs of their own growth and the needs of their development strategies, such as the internationalization of Sany Heavy Industry, Zoomlion, XCMG, and Liugong. Starting on the road is relatively early, and it is still relatively far. Sany Heavy Industry is investing in the construction of industrial parks in the United States and Germany, and is directly confronting international giants in European and American markets.

Developing countries, especially emerging markets, are the focus of developing countries. Most of the developing countries are at the initial stage of development. China has more project contracting projects in these regions and the potential market needs urgent development. Asian developing countries are the key markets for China's construction machinery exports, especially the Central Asian market. Since the beginning of this year, the number of construction machinery exported from Xinjiang's ports has continuously increased, and domestically-built engineering machinery has become a popular commodity in Central Asia for a time. According to the China Construction Machinery Business Network, China's engineering machinery and equipment exported to Central Asian countries, especially Kazakhstan, includes loaders, excavators, bulldozers, cranes, graders, road rollers, concrete pumps, and concrete mixers.

The following table shows the number and amount of construction machinery exported to Kazakhstan from January to August 2011.

China Construction Machinery Business Network analysts believe that the main reasons for the large-scale growth of China's engineering construction machinery exports to Central Asia include the following: First, the scale of urban construction in Central Asian countries has expanded, and the demand for construction machinery and equipment has continued to increase; The construction machinery products are of high quality and low price, and there are a few products that are close to the international advanced technology level. The product quality is excellent, the price is competitive, the after-sales service is perfect, and it is very competitive in the Central Asian countries. The third is the economic development and funding of Central Asian countries. Shortage is a prominent symbiotic contradiction, and the affordability of procurement for construction machinery and equipment is limited. Therefore, great expectations have been placed on China’s cheap and expensive construction machinery. China’s construction machinery has great potential for exporting to Central Asia. In addition, Saudi Arabia and UAE countries in the Middle East have more projects and have sufficient funds, and have a large demand for construction machinery and equipment. The necessary construction machinery for Iran is also imported from China.