Future trend of global engineering machinery industry
Despite the current downturn in the construction machinery industry and the widespread international bearish talk about China, the executives see an opportunity through solid operations in the Chinese...
Despite the current downturn in the construction machinery industry and the widespread international bearish talk about China, the executives see an opportunity through solid operations in the Chinese market.
Question 1: what is the forecast of the future trend of the global engineering machinery industry?
In the Guangxi Liugong Machinery Co.,Ltd. For the engineering machinery industry, strategic thinking needs to be adjusted. Last year, the economic growth rate of the brics countries has been declining, but in stark contrast to China, the currencies of these countries have been greatly depreciated, while the Chinese currency has been appreciating. China is an export-oriented country, which hurts us. Engineering machinery exports from China, because of currency appreciation, Chinese products are close to the price level of Europe and the United States, and South Korea, enterprises can no longer use the price as advantage, it also determines the we need to adjust to the idea.
Ronald Defoe, chairman and CEO of terex: I'm not an economist, but to borrow a common refrain from economists: the global economy is mixed. The us is on a strong trend, but the recovery is fragile. Europe is divided, Germany is doing well and Italy, Portugal and Ireland are burdened. For China, I think we have entered the worst trough, and tomorrow should be a better situation than today. As manufacturers, they should focus on the execution of business plans, rather than hoping the market will recover itself.
Zhan chunxin, chairman and CEO of zoomlion: engineering machinery is a relatively overcapacity industry globally. However, market opportunities can be increased through innovation and product restructuring. For the Chinese market, when China's GDP is below double digits, the construction machinery industry is severely overcapacity. In the past few years, China's construction machinery industry has generally grown at a rate of two times the national GDP, or 20 to 25 percent. In the future, then, the growth rate will be 7 to 8 percent. As predicted by the industry association, the development speed of the industry will be about 15 percent.
Technically speaking, the application of new materials and technologies will greatly improve the quality of products and change the way of construction. The use of carbon fiber, for example, has allowed the concrete pump arm to exceed 100 meters, something that would have been unthinkable in the past. This is the product in technology and structure, through innovation or by creating new markets, so that engineering machinery enterprises will have new market space. For example, the high-altitude operation platform, which is rarely used in China, is built on scaffolding. Even a sign on a street or shopping mall in our city will be put up in scaffolding. In fact, the high-altitude platform is a new product space.
Wang min, chairman and President of xugong group: despite the sluggish world economy, development is still the main theme and there are still many opportunities. Especially for Chinese enterprises, it has changed from an expansion model to a stage of transformation and upgrading. Therefore, Chinese enterprises have the opportunity to bring their high-quality products and excellent services to the world market. Internationalization is still the next step to be determined and taken. I have full confidence in China's engineering machinery industry and China's economy.
Whoever can do a good job in China's engineering machinery market will probably keep a good position in the world. Similarly, as a Chinese enterprise, to do a good job in the world market, it will be in the front row in the international market. Therefore, internationalization is very important for Chinese enterprises.
Takashi tsuji, executive director of Hitachi construction machinery co., said: the world economy will continue to grow for a long time. After the us subprime crisis, the world economy is indeed slowing down. Under this premise, we find that the whole construction machinery market is in fact a very large oscillation trend of plus or minus 30% every year. The future growth trend of the Chinese market should also be around 10% to 15% per year.
, of course, the first two years, the Chinese government invested four trillion yuan to stimulate the economy, each manufacturer in the industry have on the market expectation, also causes us to strengthen the market, the imbalance of supply and demand, product of excess eventually happen. The whole market is not only burning in China now, but also going to the whole overseas market, and there will be global competition.
Question 2: is it possible for breakthrough changes in research and development to occur during the industry adjustment period?
Zeng guang 'an: it is difficult for the engineering machinery industry to make a breakthrough in a short period of time. However, as a Chinese enterprise and a global enterprise, I think there are three trends that must be grasped. First, China's rising labor costs will create new demand for construction machinery. Second, Chinese customers' pursuit of safety, comfort and efficiency will lead to higher technology requirements. Third, energy conservation, environmental protection and corporate social responsibility will greatly promote the product r&d, manufacturing and marketing service processes of Chinese enterprises. If our Chinese companies can meet these needs, I believe we can succeed in China.
Demand from emerging markets, on the other hand, was not as we used to think has been developed countries such as Europe and the United States, the depth of the enterprise, they passively accept the Europe, Japan, the United States some of the enterprise standard. In the course of globalization in the past few years, we have found that there are a large number of customers in southeast Asia, Latin America, Africa and the Middle East, including Russian speaking areas, whose special needs have not been met. For example, the Thai market has been using the loaders of Japan's mainstream enterprises. As demand changes, the loaders are getting higher and higher, but the arms are not long enough. Therefore, liugong developed a lengthened arm loader to meet the Thai market. In just one year, the market share increased from about 10% to 30%. Therefore, I think Chinese enterprises should work hard to meet the real needs of customers in different countries, instead of passively accepting the standards of developed countries. China is also a developing country, so it will have a more similar experience and understanding of the needs of similar countries.
Zhan chunxin: the current situation breeds the opportunity of the advantageous enterprises. One of the opportunities is that in the past, development was too fast. Now, I have time to organize myself well, improve management and enhance product technological innovation. On the other hand, it is also an opportunity to expand relevant industries. Engineering machinery is the development of zoomlion, but now we need to enter the environment industry in strategic adjustment, agricultural machinery industry and heavy truck industry.
Why develop relevant industries? First, it's related first and foremost. Second, the average annual growth rate of engineering machinery is 10% to 15%. How can enterprises develop faster? Relevant industries must be expanded. Third, to do some mergers and acquisitions, we need to integrate more resources through this opportunity and jointly make the enterprise bigger.
Question 3: how do you view the means of capital operation such as mergers and acquisitions?
Wang min: enterprises should be big. Chinese entrepreneurs have experienced a rapid growth stage and have an expansive mentality. If in the future, China construction machinery enterprises can truly become a world-class enterprise internationalization, upgraded from dilated I'm afraid to go into the transformation, to enter the stage need in technology innovation, market innovation and management innovation breakthrough.
One is to rely on their own accumulation to seek a breakthrough, the other is the acquisition of merger demand breakthrough. For xugong, we were focused on the development of engineering machinery, because we are from the world's most outstanding enterprises have a big distance, so we should be more practical, more focus on the construction machinery industry, the gap is still in the core of the key parts. As a large group, xugong does not have its own excellent engine, I think this is a defect. Therefore, we should pay attention to the development of parts so that we can become a world-class enterprise.
Tsujimoto I: as a Japanese enterprise, Hitachi has also gone through a lot of mergers. How to find suitable business model is very important, such as in the field, we are need to specific areas, or seek other way to develop the product?
The pace of change in the industry is rapid and needs to be taken seriously. Therefore, I think the way of m&a is not to acquire an enterprise, but to acquire a time. Because through mergers and acquisitions, the industry will be able to achieve a rapid development from scratch.