Construction machinery is still facing challenges

Build up all parties' efforts construction machinery still faces challenges this year

China Construction machinery information

in 2014, China's construction machinery industry experienced a period of continuous decline, industry demand further fell slightly, and supply growth slowed significantly. After the in-depth adjustment, the industry has different opinions on whether the development trend of the industry this year will continue the downturn of last year, but it can be predicted that 2015 will be a challenging year

limited financial benefits

the central bank recently announced that the benchmark interest rates for RMB loans and deposits of financial institutions will be lowered from March 1, 2015. The benchmark interest rate of one-year loans was reduced by 0.25 percentage points to 5.35%, and the benchmark interest rate of one-year deposits was reduced by 0.25 percentage points to 2.5%; At the same time, in combination with promoting the market-oriented reform of interest rates, the upper limit of the floating range of deposit interest rates of financial institutions was adjusted from 1.2 times the benchmark deposit interest rate to 1.3 times

industry experts said that the interest rate cut can create a relatively loose money market environment, which is expected to drive the recovery of downstream infrastructure and real estate investment, accelerate the digestion of social inventory, and help improve the downstream chain capital situation, improve the quality of accounts receivable collection, so as to drive the demand for construction machinery and accelerate the pace of industrial recovery

however, insiders also believe that the RRR reduction is beneficial to the development of the industry in the short term, but the space is limited. On the one hand, the RRR reduction mainly brings about the increase of financing demand and the reduction of debt cost, which can stimulate demand to a certain extent. Therefore, the construction machinery located in the machinery segment benefits relatively

on the other hand, although previously stimulated by the theme of "the the Belt and Road", the valuation of the construction machinery sector has been significantly repaired, with the highest peak industry average PE (private equity investment) of more than 35 times, significantly higher than the average PE of 20 times in 2013. However, at present, due to the fact that the performance of major companies in the industry is significantly lower than expected, the share price of the industry has retreated by more than 20% compared with the previous high. Therefore, the RRR reduction may promote the industry to rebound slightly in the short term, but the space is limited

in addition, due to the significant increase in market concentration, large enterprises are becoming more and more resistant to market fluctuations. At the same time, many small and medium-sized enterprises' market share has shrunk seriously, coupled with the macroeconomic downturn, the operating pressure of downstream customers in arrears and the tightening of payment capacity, the credit risk of the industry as a whole has increased

the increase of industry demand and potential credit risk, the competitiveness of products in the industry, the aggressiveness of credit sales and the ability of cash flow turnover will become the main driving factors for the differentiation of credit quality among enterprises. Among them, enterprises with relatively strong product competitiveness are more likely to obtain performance and cash flow support through normal sales, while some enterprises with insufficient product competitiveness may be eliminated under the pressure of continuous decline in market share. The credit quality of the industry also makes the benefits brought by the interest rate cut discounted

in 2015, under the favorable stimulation of the opening of the interest rate reduction channel, as well as the steady growth trend of infrastructure investment and the improvement of export recovery, the supply and demand pattern and corporate profits of the construction machinery industry are expected to accelerate the improvement, and the slow climbing trend of the industry boom is relatively certain, but it will take time to see the significant improvement of profits and asset quality

policy support for development

Wang Jianyu, director of the Machinery Department of the equipment industry department of the Ministry of industry and information technology, said a few days ago that the equipment manufacturing industry is an important part and foundation of the national economy and the main battlefield for the adjustment of economic structure and the transformation of development mode. China's equipment manufacturing industry is in a critical period of transformation and upgrading, and in a historical development stage from large to strong. To achieve the goal of building a powerful country in the equipment manufacturing industry in an all-round way, We must unswervingly promote innovative, green and intelligent development, accelerate the development of high-tech, high value-added and resource-saving advanced equipment manufacturing industry, and promote industrial transformation and development around the construction of a powerful country in the equipment manufacturing industry

at present, China's construction machinery industry is facing the following transformation tasks. First of all, the industry needs to establish and improve the industrial technology innovation system, build a development mechanism of the integration of industrialization and industrialization, and achieve a breakthrough in the technical level

secondly, we should focus on strengthening the manufacturing of basic parts. Basic technology and basic materials, to a large extent, determine the quality of products. We should aim to improve the reliability of product quality and basic supporting capacity, encourage the host and supporting enterprises to jointly conduct public relations, accelerate the R & D and industrialization of key basic parts, key components and sensors, and support the collaborative innovation of upstream and downstream enterprises

secondly, to comprehensively promote the construction of quality brands, we should strengthen the main body of enterprise quality, promote advanced quality technology and management methods, promote enterprises to establish a comprehensive and life-cycle quality management system for all employees, and speed up the cultivation of enterprise clusters with global competitiveness, so as to improve their competitiveness on a global scale

finally, actively promote green manufacturing. We should establish and improve relevant standards and regulations, strictly regulate and manage them, and strive to reduce energy and resource consumption, improve resource utilization, and reduce the discharge level of wastewater, exhaust gas, and solid waste in accordance with the principles of reduction, reuse, and recycling

it is understood that at present, the Ministry of industry and information technology and other ministries and commissions have formulated special plans to carry out work according to the characteristics of the construction machinery industry

the Ministry of industry and information technology has begun to establish a new industrial organization model of industry university research and application integration with close cooperation between upstream and downstream, clear division of labor, and benefit sharing with the new product model of "main distribution and hand in hand", actively build more cross industry and cross regional production and demand docking platforms, strengthen information sharing and exchange, and promote the collaborative interaction between upstream and downstream enterprises in the industrial chain. With capital as the link, strengthen the "main allocation hand in hand", encourage host enterprises and spare parts enterprises to jointly establish companies, form a community of interests in the form of joint shares, share innovative achievements, and strengthen supporting promotion; Continue to promote the cooperation between automobile and bearing, automobile and machine tool industries

promote the first set of application of domestic major equipment and key basic parts, and focus on supporting the pilot demonstration and promotion of new products of domestic major equipment and key basic parts. The state will provide support in taxation, import and export, and try to establish the first set of major technical equipment insurance compensation mechanism

attention should be paid to the second-hand market

it is understood that the current domestic ownership of second-hand construction machinery has exceeded 5million units, and the annual sales of construction machinery will reach more than 1million units in 2015. According to the life cycle of mechanical equipment, it is estimated that by 2020, the number of construction machinery scrapped each year will be as high as 1.2 million. Although the number is huge, the legitimacy of second-hand products in the market still needs to be solved

the sales methods of second-hand construction machinery are generally divided into three types: the first is to be digested by the dealers themselves, the second is to be processed through the secondary distribution markets such as Tianjin and Shenzhen, and the third is to auction with the help of third-party platforms such as Yiji and Li brothers. The imperfection of second-hand equipment sales channels is one of the key issues affecting the orderly development of the industry. At present, more than 80% of domestic second-hand equipment transactions are private transactions

in addition, how to identify the qualifications of dealers engaged in second-hand products, how to solve the transaction value-added tax rate of second-hand products, and how to identify the shelf life of second-hand products for recycling and reuse have also become the main obstacles to the scale development of second-hand products of construction machinery

what is more worrying is that the current national evaluation standard for the second machinery is still blank, which is generally judged by enterprises and users privately according to the service life, service time, service conditions and other information of machinery and equipment, which is prone to black box operation and affects the sustainable and healthy development of the industry

at present, the country has been actively promoting green manufacturing. In accordance with the principle of reduction, reuse and recycling, the fixed assets of the paper industry increased by 5.1% year-on-year in 2018, the country has made efforts to reduce energy and resource consumption, improve the mode of capital development cooperation and the utilization rate of specific product sources, and reduce the emission level of wastewater, waste gas and solid waste. Solving the problem of the secondary market not only solves the situation that the second-hand market is mixed and disrupts the normal development of the market, but also effectively realizes the environmental protection concept of waste utilization. In addition, it can also provide good raw material support for the downstream remanufacture industry and solve the embarrassing situation of the engineering machinery remanufacture industry. Attaching importance to the guidance of the secondary market and the formulation of standards will be a key to the green development of construction machinery