The prospect of concrete machinery market is tempting to avoid price war

In 2010, it was a year that China's construction machinery industry broke out. Concrete machinery also took this opportunity to continuously introduce new technologies, new products, new technologies, and new services to attract a wider range of customers and continue to explore new markets; The expansion and product line are extremely rich, making the concrete machinery industry gradually stepping into a prosperous period. According to statistics, the output of domestic concrete machinery in 2010 has exceeded 50% of the expected output. It is expected that the demand for this year will continue to maintain a sustained growth trend. The market for concrete mixer trucks, bulk cement trucks and concrete pump trucks is particularly promising.

Strong demand growth will exceed 50%

In recent years, China's concrete machinery market continues to be hot. According to reports, a leading company concrete pump truck has set a new record of over 800 units in monthly sales, and this trend has been extended to third and fourth tier cities. The change in construction methods and the increase in the use of commercial concrete have increased the demand for the pump truck market. It is reported that in Erdos, Inner Mongolia, a small city with a population of less than 500,000, more than 400 concrete pump trucks have been sold since the second half of 2009; 260 mixing stations have been completed and put into operation, plus the mixing under construction and preparation for construction. Station is expected to exceed 400. Among them, most are double-stirring unit mixing stations with a production capacity of 2×120 m3/h or more. The urbanization of our country is building a platform for the cultivation of local enterprises into world-class concrete machinery enterprises.

According to a survey conducted by the Shenyin Wanguo Securities Research Institute, by the end of 2010, the national bulk cement rate was around 48%, which did not complete the 2006 target. However, from the distribution point of view, first-tier cities have basically reached a bulk rate of more than 90%. With the first-line real estate developers gradually entering the third- and fourth-tier cities, the construction methods have gradually shifted from on-site mixing to precast concrete, which has led to the rise of concrete machinery market in the third and fourth tier cities. Demand in the underdeveloped regions is growing faster than in developed regions, and bulk cement rates are increasing rapidly.

It is understood that large-scale cement companies are currently entering the ready-mixed concrete market. Their means is to invest in concrete mixing plants and directly designate concrete mixing plants to use the cement produced by the company to achieve the purpose of cement sales and improve the industrial chain. Due to the large scale of these enterprises, the demand for concrete equipment is formed. In 2011 alone, the concrete production capacity of Jidong, Ta-Pak, Yatai, China Resources, and Huaxin Cement reached 180 million cubic meters, an increase of nearly 100% year-on-year.

According to experts, the theoretical service life of the concrete pump truck is 8 years. In practical applications, after the concrete pump truck has been working continuously for 5 years, the vehicle is old, the number of maintenance increases, and the maintenance cost is high, so it can basically not be used as a main application. Repurchase a new car. Therefore, the actual service life of a pump truck is about 5 years. Pump trucks that use more than 5 years basically enter the phase of elimination and replacement. Due to the rapid increase in demand for concrete machinery in 2006, experts predict that pump trucks will begin to enter the peak period of replacement this year, and their update demand is expected to exceed 3,000 units, accounting for about 20% of total sales. Given that the real estate new construction area has maintained positive growth and infrastructure investment has remained high, the declining demand in the third and fourth tier cities and the strong expansion of cement manufacturers have increased the demand for upgrading. These factors will drive the concrete machinery industry to maintain growth of over 50% this year. The average annual demand for pump trucks during the 12th Five-Year Plan period is about 16,000 units, which is about twice of 2010 production.

The rapid expansion of leading enterprises' involvement in production capacity is similar to that of the excavators two years ago. The investment in concrete machinery in China witnessed an explosive growth in late 2010 and the first half of this year. It is understood that the scale of new investment has reached more than 10 billion yuan. Among them, the investment of leading companies in the industry is particularly eye-catching.

On September 29, 2010, Liugong Group controlled Shanghai Hongdeli and entered the concrete machinery industry in an all-round way. Its sales target for 2012 was set at 2 billion yuan. In 2015, it strived to exceed 8 billion yuan in sales revenue and enter the top 3 in the industry.

In 2010, Shantui, Nippon Nikkan Co., Ltd. and Wuhan Zhongnan Company jointly invested 1.5 billion yuan to build Shantui Wuhan Industrial Park; on April 18, 2011, Shantui Concrete Machinery Wuhan Industrial Park Phase I project was developed in Donghu High-tech Development Zone in Wuhan. District completed, the first "mountain push Chutian" brand pump off the assembly line.

On May 6, 2011, the foundation laying ceremony for the concrete mixing machinery industry base of Xugong Technology Branch was held in Xuzhou Economic and Technological Development Zone, Jiangsu. The project covers an area of ​​more than 400 acres and an investment of more than 1 billion yuan. It will have the capacity to produce 1,400 sets of mixing machinery per year. On June 15th, a foundation laying ceremony was held for the Xugong Concrete Construction Machinery Industrial Base with a total investment of 2 billion yuan. The project covers an area of ​​675 acres. The total investment of the project is 2 billion yuan. After the production, 3000 concrete pump trucks and 600 concrete pumping units will be formed. The annual production capacity of 600 concrete pump trucks and 150 shotcrete vehicles.

The competition for the hegemony price will come to the end of the war. With the continuous expansion of the concrete machinery industry, the market competition will become increasingly fierce. According to industry insiders, the current China has trained a large number of professionals to provide convenience for the latter's entry into the concrete machinery industry. However, this kind of convenience may lead to enterprises adopting the competitive strategy of “re-digging talents, imitation, and improvement” and “light innovation”. Besides the new entrants, apart from the price, there are few other competitive advantages, which will negatively affect the development of the industry. influences.

It is understood that at present, China's towing concrete pump manufacturing industry is mainly concentrated in Zoomlion, Sany Heavy Industry, Fangyuan Group, Hubei Construction Machinery, Sichuan Jiajiang five companies. Concrete mixer trucks are mainly concentrated in 7 enterprises in East China Construction, Anhui Xingma, Shaoguan Xinyu, Liaoning Heinuo, Hubei Construction Machinery, Xuzhou Liebherr, and Tangshan Special Purpose Vehicle. Concrete mixer station manufacturing industry is mainly concentrated in Shandong Construction Machinery, Shaanxi Construction, Yangzhou Construction Machinery, East China Construction, Fangyuan Group, China Construction Second Bureau, Sichuan Modern 7 companies. The concrete pump manufacturing industry is mainly concentrated in Zoomlion, Sany Heavy Industry, Liaoning Heinuo, Anhui Xingma, and Shanghai Pusmeister. Among them, in addition to a few companies with absolute advantages, the prospects for the development of many new-enterprise concrete machinery are not optimistic. According to statistics from China Construction Machinery Business Network, Sany Heavy Industry occupied more than 50% of the pump truck market in 2010, and Zoomlion exceeded 30%. Judging from the type of competition structure at the product level, China's pump market can be defined as an "absolutely exclusive type." The market occupancy rate of Sany pump trucks has exceeded the target value for stability, and the distance with Zoomlion has further widened, and it is likely to become an exclusive position. In addition, as a single value-added direct sales product, customer resources become the most important factor in competition. It is no exaggeration to say that Chinese construction companies have come along with Sany and China United's products. The supply and demand sides have formed a stable cooperative relationship, and it is difficult for other companies to infiltrate.

According to experts, there is no advantage in product technology, there is a gap in customer relations, and it is impossible to cover a wide range of services. The only competitive means left for other companies is only the price. With the continuous investment of new investment projects and continuous expansion of production capacity, the pump truck market will finally usher in a bloody and gloomy price war. According to the investment plans announced by major manufacturers, new production capacity will be gradually reached by the end of 2012, and production capacity will begin to be released quickly in 2013. If other manufacturers in 2013 and 2014 were technically closer to Sany and China United, which would make the products compete on the same level in terms of quality, then in 2015, the price war will really begin.