Targeting the International Market of Construction Machinery

Over the years, construction machinery China’s huge domestic demand to promote development and growth, many companies large and small construction machines own entertainment in the huge Chinese market, enjoying the party.
Meanwhile, foreign counterparts around the world have also rushed to join the ranks of the sub -cake. For a time, the Chinese School of Earth rejoice. Since the implementation of macroeconomic control in 2004, despite drastic changes in the construction machinery industry, an increasingly weak domestic market. The popular success at the same time, more and more Chinese enterprises to explore overseas development. 2004 and during the first 5 months of statistical data have shown a significant increase in exports of construction machinery. However, this small base in the hotel suddenly the “high growth ” seems to be ” driven to revolt, ” a taste of the great potential of foreign markets and accompanied by attention. Which is precisely at this time, a lot of very clear talent, recognized in the domestic market is being eroded by foreign powers, while foreign markets face a difficult situation. I entertain for many years, so today I had to face the construction machinery enterprises in China, reviewed ” internal and external ” situation surrounded. Exiting a construction machinery and quietly began to fight.
Two days
of construction machinery enterprises fate is typical of investment -oriented industries, and years of construction machinery enterprises in China rely heavily on the proactive fiscal policy and the construction of infrastructure for large-scale domestic survival and growth. Huge domestic market, not only have a month to feed a burgeoning population of Chinese enterprises, which still attracts Europe, America and Japan, the world’s leading gold companies.
The world of construction machinery Caterpillar ‘s largest manufacturer and in 1995 a joint venture factory in China, while the WTO commitments China’s implementation of industry giants step construction equipment have landed in China. 2001, foreign capital and 30% per year growth rate and achieve localized delivery. In recent years, basically monopolized the domestic high-end market, and even the occupation of the different sub-sectors of the market.
By 2003, foreign investment, joint ventures have occupied the market share of 47% in China. Even the very competitive, but in building prosperity in China, the construction machinery industry has maintained a rapid development of the situation, just before the macro-control, there is also the highest level of growth? The first quarter of 2004, sales rose 73.9%, April has growth of 63% in performance.

To suppress the overheating in some sectors of the economy, the Chinese government decided to implement macro-control, the State Council issued a circular in late April of that year, he decided to raise the iron and steel, electrolytic aluminum, cement and real estate development capital investment in the sector because of the fixed assets cleaning fixed assets investment projects is required, the depth to rectify the land market, strictly manage the land. Control effect becomes more apparent, the National Urban fixed asset growth rate of investment to 53 % from the previous two months, quickly fell to 4.7 % in April. Classical investment theory still applies here. Too much trust in the domestic market in the hands of Chinese machinery enterprises only basket was engineering this dump mode. Inevitable that almost all Chinese machinery enterprises have different engineering degrees of impact, one has a business started limiting production and continuing losses. Mayo, the excavator sales below the level of the same period in 2003, appeared the first year of negative growth in recent years, the growth rate of boot sales dropped sharply from February, March, 156 %, 76 5% to 37 % faster; machinery manufacturers also agreed to introduce concrete May said sales declined.

Sales revenue of the industry grew at a monthly rate of 10% down to the end of 2004 and fall in 2005, the first 4 months sales revenue remains negative. Currently, the macro-control and no end in sight, the impact of construction machinery business has fallen more than simple, capital accumulation, income increased delinquencies, brain drain, have become the problem is not resolved in the short term. If the macro-control later this year, the impact of the construction machinery industry will continue for at least the first half of 2006. Found in China, foreign investment, joint ventures, but successfully resisted the invasion.

As Caterpillar Xuzhou, Chengdu Kobelco, Daewoo and Hefei Hitachi and other companies, when in the face of macro-control showed good adaptability. They are based on a complete industrial chain network wise and mature global sales, product deployment worldwide, resold, provided the impact relatively weak China market change much. It explores the causes of this phenomenon, I’m afraid, and foreign investment, joint ventures, ” both legs ” walk. Therefore, Chinese companies have no reason to continue to bet on a market.

Explore the international market? Should look to grow the international market now is a period of strong demand in Asia, Europe, the Americas, Africa business opportunities are everywhere. What developing countries of Asia and Africa as the main export destination of China. In Malaysia, the government in order to encourage imports of machinery and advanced equipment, developed a series of preferential policies, such as priority sectors, Chinese companies to invest in machinery and equipment industry in the country, free access tariffs at 100 % income tax for 10 years, this special offer. Powered by Indian industry awareness of its poor infrastructure further limiting economic development in the development plan of the infrastructure of ten years and preferential policies, decided to spend the next five years, more than 200 billion dollars of funds for construction of the United States. In addition, like Nigeria, Vietnam, and plan long-term commitment of the national infrastructure, are a huge market for construction machinery.

Meanwhile, the Chinese economy in recent years has significantly improved, more convenient operation exporters. With the completion of the relevant WTO commitments, MFN tariffs have been reduced to the standard treatment, the number of non -tariff restrictions, including export quotas and licensing system had been abolished. Countries open the door for the export company, is nearing completion system export financing, export right of self-examination and approval authority to relax much more convenient procedures for processing exports. Meanwhile, industry associations and chambers of commerce in recent years, many domestic enterprises to participate in international organizations, construction machinery exhibition industry to help companies access to international markets, exchange of information and and trade cooperation has achieved remarkable results, erected a very good platform.

March 2004, China Construction Machinery Association of China National Pavilion for the first time the name of the collective organization of domestic manufacturing enterprises Three International Construction Machinery Exhibition Fair ( Munich, Germany, Las Vegas, Paris, France ), one bauma2004 Munich. Including Xuzhou Construction Machinery Group ( XCMG ), Guangxi Liugong Machinery Co., Ltd. ( Liugong ), Xiamen Machinery Co., Ltd., Changsha Zoomlion Heavy Industry Sany Heavy Industry Co., Ltd. Technology Development Co., Ltd. ( Sany ), etc, 42 exhibitors, exhibiting the highest standards of the national representative of 60 sets of construction machinery products, unleashed a wave of Chinese style in Munich. Moreover, the participation of a number of manufacturers of construction machinery in China also show users with business abroad and exports reached an agreement, some companies repeatedly after the show received from foreign buyers.

China visionary companies have already started the ” Lexington” of shots. China’s largest production base of construction machinery in Xuzhou Construction Machinery Group in May last year, passed the European CE certification, and successfully in France, Poland exported charger after each recently received the recognition received from Poland in the 50 Taiwan orders loader, size after early workers Xu Changlin Co., Ltd. started in 2001 established sales offices abroad, and focus on brand strategy, exports increased year after year, and now, Sany, Liugong outlets are set in India, is opening up the Indian market. The current Chinese enterprises in international market development, still in the startup phase and acceleration, continue to emphasize the dependence of the internal market. But to expand the overseas market to expand the scale of the company and the deep development of enterprises, it has become more and more enterprises in construction machinery consensus. Fortuna to rely on Chinese companies in the domestic market have been pointing vast world outside the country.

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