Expansion by mixing plant enterprises has led to numerous existing problems in the industry

The construction machinery industry is one of the important pillar industries for the development of China's economy. Over the past two decades, China's construction machinery industry has achieved significant results in transforming its development mode and adjusting its economic structure, with both production and sales jumping to the forefront of the world 1、 The comprehensive strength has rapidly increased, and the international competitiveness and industrial status have greatly improved.

However, after ten years of high-speed growth, companies have begun to shift towards a medium growth period. In the process of adapting to industry changes, companies need to strengthen industry self-discipline, regulate market competition, and abandon bad habits that are not conducive to industry development. Only in this way can the industry be healthy and sustainable, "said Lv Ying, Deputy Secretary General and important engineer of the China Construction Machinery Industry Association, in an interview with reporters on April 17th.

Enhance brand and technological strength

The market is a double-edged sword, often presenting both opportunities and challenges.

Under the current development situation, enterprises need to first adjust their mentality. High speed growth is no longer the goal they are pursuing. The important issue for enterprises now is to continuously improve their brand and technological strength. "Lv Ying analyzed that from the current situation, although the industry is in a transitional stage, the market demand for construction machinery is still strong, and the global market demand is still considerable. In the era of rapid growth in the past, enterprises blindly attacked cities and territories, pursuing scale expansion and market share, resulting in many unresolved problems in the industry. Now that the industry has entered a period of moderate growth, there is time and conditions to solve some problems that have not been digested in the past.

This is a necessary stage that the industry must go through when it reaches a certain level of development. Enterprises need to change and adjust their understanding to adapt to the current state of industry development. From passive adjustment in the past to active adjustment now, focus attention on the deep-seated problems that the enterprise urgently needs to solve, such as improving management level, research and development capabilities, and so on.

Currently, there is still a certain gap in the recognition of domestic brands compared to foreign brands in the minds of users. Some foreign companies' products and brands have stable market positions and loyal users both domestically and internationally. Users have their own standards for measuring product quality. Brands with long-term stable quality, reliability, and high cost-effectiveness have a high degree of recognition in the market. Although foreign products are priced higher, sales remain relatively stable regardless of market development. However, domestic enterprises have obvious shortcomings in this regard and need to double their efforts. "Lv Ying said that in the future, it will be difficult for the industry to experience rapid growth and expansion, but there is still potential for industry development, which requires users to put more effort into improving product quality, performance, and brand awareness.

The duck knows first when the river becomes warm in spring

In this regard, some companies with strategic vision have already realized this issue during the period of rapid industry development. These enterprises not only have strategic vision in their development, but also have a deep understanding of their own and industry development, "said Lv Ying. He suggested that in the current unstable market development environment, every enterprise should quickly find its market positioning and formulate development strategies in a timely manner under the new situation, especially in improving product quality and cost-effectiveness.

Standardize market competition

At present, price wars have become an unavoidable issue. In the process of competing for the market, enterprises have adopted models such as zero down payment and low down payment incentive sales, which have led to a significant increase in accounts receivable and increased business risks. Here, Lv Ying calls on enterprises to maintain rationality and healthy competition, and calmly face market competition.

Fortunately, the construction machinery industry and related upstream industries are making unprecedented efforts, and the research and development, trial production of some high-end supporting products have achieved phased results. The government department also provided it With great attention and support, the collaborative work platform for the industrialization of high-end hydraulic components and systems in construction machinery, led by the Ministry of Industry and Information Technology, has begun to operate. I believe that in the near future, key components of construction machinery will not only meet the demand of the domestic market, but also provide high-performance and high value-added products to foreign enterprises. At that time, the dream of building a strong country in the construction machinery industry will no longer be a dream.