Current status and economic indicators of crane exports.


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2015-11-29

Shuffling, adjusting, transforming, upgrading, whether in the excavator industry or the crane industry, the unchanging theme of 2013 is always these few words. On December 6, the 2013 Annual Meeting of the Engineering Crane Branch of the China Construction Machinery Industry Association, which leads the new direction of the industry with transformation and upgrading, was held in Shaoguan, Guangdong. More than a hundred representatives from the engineering machinery crane industry, including complete machine and component enterprises and leaders of related associations, attended the meeting.

At the meeting, Qi Jun, president of the China Construction Machinery Industry Association, delivered a speech titled "Analysis of the Development Situation of China's Construction Machinery Industry in 2013." Qi Jun pointed out that from 2003 to 2012, the number of tire cranes in China reached about 230,000 units. Excluding the export sales data of tire cranes and adding the import sales data, while also considering the equipment that has reached the end of its service life but has not been decommissioned, the number of tire cranes in China has already exceeded the ownership. According to the editor of China Construction Machinery Business Network, the annual sales volume was less than 10,000 units in 2002, and it broke through 40,000 units in 2011. The crane industry in China is facing a huge crisis of overcapacity. Overcapacity, product homogeneity, low prices, and low-end tendencies have become thorny issues that the entire industry must face. Although the entire industry has begun to warm up, to fundamentally break through the market, enterprises must enhance their risk resistance capabilities, optimize product structure, optimize production models, and innovate towards resource-saving development. As Qi Jun said: Entrepreneurs should be based on integrity, engage in healthy competition, treat the market well, and treat our enterprises well.

Current status of the export market:

The sluggish domestic market has led many enterprises to embark on an international journey. The export of the engineering crane industry has gradually become an important economic growth point for the entire industry. Before 2005, the annual export volume of the entire industry was less than 500 units, and it broke through 1,000 units in 2006. In 2008, it reached a peak of nearly 5,000 units. In 2009, due to the impact of the global economy, it dropped to less than 2,000 units. By 2012, the annual export volume exceeded 4,000 units, approaching the peak value of 2008, reflecting that Chinese engineering crane enterprises have fully expanded their overseas layout, and their products' competitiveness in the international market is continuously increasing. Su Jie, president of the Engineering Crane Branch, believes that the Chinese crane market has entered a stage of stable development, and industry growth will remain in a low growth range. Regardless of whether fluctuations and adjustments occur, the Chinese crane industry will inevitably enter a deep water zone of development.

Main economic indicators of engineering cranes:

Since 2003, China's engineering crane (referring to mobile cranes, including truck cranes, all-terrain cranes, crawler cranes, truck-mounted cranes, off-road tire cranes, and tire cranes) industry has experienced ten years of rapid development. From 2003 to 2006, the annual sales of engineering cranes exceeded 10,000 units; from 2007 to 2008, the annual sales exceeded 20,000 units; in 2009, the annual sales exceeded 30,000 units; and from 2010 to 2011, the annual sales exceeded 40,000 units. However, by 2011, although China's engineering crane industry still achieved slight growth, the overall industry growth rate slowed down due to national macro-control, the global financial crisis, and the European debt crisis. Entering 2012, the production and sales situation of the industry significantly declined, with total sales of mobile cranes dropping to over 35,000 units, a year-on-year decrease of 25.6%. This is the first comprehensive negative growth for the entire industry in nearly a decade. From 2011 to 2012, complete machine enterprises increased their sales efforts for inventory products, and various irrational excessive marketing methods not only seized the market but also increased the accounts receivable amount, severely impacting the cash flow of enterprises and causing difficulties in capital turnover.

Qi Jun stated: In April 2011, the engineering machinery industry began to decline, and after 28 consecutive months of decline, by August of this year, overall sales volume rebounded, and the industry began to shift from negative growth to positive growth. The 12th Five-Year Plan for the engineering machinery industry predicts that the sales target for wheeled cranes in 2015 can reach 60,000 units, including 16,000 units for export; the target for crawler cranes in 2015 is 2,800 units, including 1,500 units for export. In light of the current situation, the engineering crane industry should shift from extensive to intensive growth, from resource-consuming to resource-saving, and from external demand-driven to internal demand-led. It is essential to enhance crisis awareness, rationally consider the future development strategy of enterprises, strengthen internal capabilities, and improve the competitiveness of enterprises through transformation and upgrading. As Su Jie said: We should seek market order through norms, dignity through self-discipline, benefits through pricing, health through mutual integrity, and development through industrial upgrading.