High-speed rail slows down, and construction machinery companies are hit

As the world's largest Chinese construction machinery market, it suddenly met the "inflection point" in the second quarter of this year. From April 2011, sales of major construction machinery products, including excavators, loaders, and bulldozers, began to drop sharply, and the excavator market experienced a rare increase in both historical growth and scale. The appearance of this kind of situation, whether it came to an abrupt halt in the Golden Age or the rational return of crazy growth, has filled the industry with feelings of confusion and overwhelming.

The decline in the construction machinery market is related to the current economic situation and the country’s macro-control. It is related to the increasingly fierce competition in the market. It is related to the construction of domestic housing, water conservancy and the slowdown of urbanization rate, and also has a deceleration with the construction of high-speed railways. close relationship.

The construction machinery industry is an industry that is sensitive to national policies. Recently, the State Council held an executive meeting to reorganize system safety assessments for railway construction projects that have been approved but have not yet started. In addition, the suspension of the approval of new railway construction projects. This news heralded the end of the "leap-forward" development model for China's high-speed trains that began in 1997. This is undoubtedly a major blow for Chinese equipment companies that have eaten for many years high-speed rail rice, especially for construction machinery companies.

The high-speed rail has greatly stimulated the construction machinery products. The total investment of the Beijing-Shanghai high-speed rail is 220 billion yuan, of which the infrastructure construction accounts for 100 billion yuan, the construction machinery procurement scale is about 20.9 billion yuan, and the average annual purchase amount is about 4.2 billion yuan.

High-speed rail has a large demand for construction machinery and presents a phased feature. According to the construction process, the types of required construction machinery and special accessories are as follows: bulldozer and planer, rotary drilling rig, concrete machine (one station and three cars), bridge support, beam box equipment, bridge erector, paver , CA mortar or track slabs. Specifically speaking, rotary drilling drills and other piling equipment have a large demand in the civil construction phase, and concrete machines and bridge building machines require a large amount of time in the bridge erection phase.

The “large pies” of the high-speed rail project drew the appetite of the construction machinery companies. They all invested heavily and invested more. This year, XCMG's concrete construction machinery industry base has a total investment of 2 billion yuan. After it is put into production, it will form an annual production capacity of 3000 concrete pump trucks, 600 concrete pump trailers, 600 concrete truck-mounted pumps and 150 shotcrete trucks.

Shantui jointly invested in the construction of a new factory in Chutian with Japan’s Nikken and Wuhan Zhongnanji last year. After reaching production capacity, it can have an annual production capacity of 3,000 sets of various types of concrete mixer trucks, 1700 sets of boom type pump trucks, 1,000 sets of holding pumps, and 200 sets of concrete mixing stations, which can realize an operating income of 10 billion yuan. Last year, Shantui Concrete Machinery achieved an explosion of 596%. In the first quarter of 2011, the growth of concrete machinery in Shantui's home-made products has continued to grow at a high level.

The growth of concrete machinery will slow down It is understood that, consistent with the entire construction machinery industry, concrete machinery developed rapidly in the first quarter of 2011, and by April, the operation was still in good condition, but performance was worse in May and even worse in June. Since the third quarter, some orders have been produced, customers have delayed picking up, and some orders have simply been cancelled by customers.

The market performance of concrete machinery is basically determined by the amount of engineering. Any changes to the national policies will have an impact on this industry. As one of the important markets for concrete machinery products, the policy shift of high-speed rail projects has had a great negative impact on the concrete machinery industry.

The overall decline in the high-speed rail segment was actually on the first Monday after the July 23 heavy railroad traffic accident on the Yonglin line, that is, on July 25, the entire high-speed rail segment fell sharply, and the share prices of high-speed rail-related companies also fell.

The share prices of major stock companies such as China South Locomotive and China North Locomotive Co., Ltd., which are mainly used to produce complete vehicles, have fallen. Another affected group is some companies that provide parts for high-speed rail. If Tianma shares were firmly sealed on the daily limit on July 25th.

As a construction machinery industry that provides equipment for high-speed rail, from the perspective of the current stock market performance, the degree of influence has not been as direct as the above two groups. However, analysts of securities industry said that the indirect effects of the shrinking customer market will also It will soon be reflected.

Construction machinery companies should actively respond to how the construction machinery industry can effectively reduce the adverse effects of changes in the high-speed rail policy and require the construction machinery industry to respond in a timely manner.

One must avoid vicious competition overdrafts. Long-term development In the increasingly fierce competition, in order to grab more shares, many companies have focused their attention on the market, and have made great contributions to marketing, especially promotion. Especially in the subdivision areas represented by cranes, excavators, etc., since 2011, price competition has become increasingly fierce, and zero-down payment and disguised price reduction have been frequently used. In the short term, this can lead to sales, but in the long run, this vicious competition will undermine the long-term development of overdraft companies and bring great risks to the company. This is something that the entire industry does not want to see and must avoid.

Second, removing impetuousness and accelerating innovation China's expanding infrastructure and rapid economic development in the country have made the construction machinery market experience an era of very popular and busy production and delivery. In this era, companies have products on the line, there is a low level of excess production capacity, management innovation, technological innovation, market innovation, personnel training, etc. are ignored.

Similarly, when the market returns to rational development, as a manufacturing company, it is necessary to remove the impetuous mentality, seize the opportunity to well study the needs of customers, the needs of the market, accelerate the pace of technological innovation and internationalization, and make the market have a healthy The competitive environment ensures the security and sustainable development of the entire industry.