Machinery Industry Explores Industrial Chain Extension

At the end of last month, the Fifth China CNC machine tool exhibition, which was regarded as the "vane" and "barometer" of the numerical control machine tool industry, was held in Beijing. A group of high-precision domestic high-end CNC machine tools were unveiled, attracting a lot of attention from the Quanzhou machinery industry.

This reporter has learned that Quanzhou is the largest "four round" production base in the construction machinery industry, which has a high share of the industry after the price and variety. But in recent years, the industry is facing new challenges, and the industry is exploring a way to break through the bottleneck.

The "four round" production base of industry status

The "four wheel area" is a supporting part of crawler walking construction machinery, which includes supporting wheels, driving wheels, towing wheels, guiding wheels and walking tracks.

In the 80s of last century, a series of spare parts such as automobile tyre screws, fasteners, gears, stamping parts, chassis and so on were produced in Licheng, Quanzhou. They sell well all over the country, and sales and sales are among the top of the auto parts industry in China. A large market space has enabled a large number of Quanzhou people to start the supply and marketing business in all parts of the country.

A Quanzhou machinery parts supply and marketing staff told reporters: "at that time, in all parts of the country, accidentally will encounter Quanzhou counterparts on the same bus."

With the rapid development of China's economy and the continuous development of infrastructure such as highways and railways, and a large number of mines are being exploited, many people in this supply and marketing army have seen tremendous business opportunities in the field of construction machinery parts.

Jiang Weidong, general manager of Quanzhou Quanhai Machinery Development Co., Ltd. is one of them.

In 1996, he introduced the "four round" production chain of construction machinery in Quanzhou. At present, the production of supporting wheels, supporting wheels, steering wheels and steering wheels has been sold to Southeast Asia and Europe and the United States, and the name of Quanzhou production area has been launched.

As Jiang Jinlong, general manager of Quanzhou Qixing Machinery Co., Ltd., the first batch of "four round" enterprises in Quanzhou, said: "Quanzhou's business tradition and abundant overseas human resources and its advantages such as capital, information and network have laid a good foundation for the birth of Quanzhou construction machinery industry since ancient times.

In particular, the relatively complete industrial chain of Quanzhou machinery has promoted the development of Quanzhou enterprises in a large-scale and intensive way, forming a regional block economic pattern.

After nearly 20 years of development, there are a number of powerful manufacturers in the field of construction machinery parts in Quanzhou, such as Qixing, Quanhai, Changjiang, Sheng De, Jiang Xin, Hengtong and so on. They are the main production and supply bases for chassis worn parts such as crawler cranes, crawler loaders, excavators and bulldozers in four rounds.

As a whole, the construction machinery parts field in Quanzhou has been influential at home and abroad. In October 2004, Licheng district was awarded the "China automotive engineering machinery fittings industrial base" by the China heavy duty automobile parts Federation.

Market status as a global recessive champion

After China's accession to the WTO, China's economy has integrated into the international circulation and opened up a convenient door for export.

The export of construction machinery parts is much less difficult than the export of construction machinery products. If the accessories products have certain technical level, excellent quality, reliable reliability and reasonable price, it is difficult to export large quantities of products.

Under such circumstances, Quanzhou construction machinery industry with strong productivity has sprung up.

According to a survey report of China Construction machinery information network, with the keen sense of smell and the unique resources of overseas Chinese hometown, Quanzhou has become the hidden champion of the global construction machinery market, and has gone abroad to monopolize the Southeast Asian market and exported to Europe and North America.

The concept of post market was first put forward by American Motor Corp. The original idea was that $1 of cars were sold, which would generate 8 dollars in related services, including auto parts supply, vehicle modification, repair and maintenance, boutique beauty and vehicle electrical appliances.

In short, the post market refers to the market space brought about by the various service needs of the product using process after the product is sold.

Yi Wen Tun, deputy director of the Licheng Changtai Party committee and deputy director of the office, pointed out: "in the industry, Quanzhou's" four round area "has a very high reputation in the world.

Only the Changtai Street office has 65 enterprises producing "four round and round" enterprises, forming a complete industrial chain such as casting, forging, machining, heat treatment and so on, with famous enterprises such as Qixing, Quanhai, Changjiang, Sheng Dejiang and so on.

He believes that Quanzhou is the largest "four round" production base in the construction machinery industry, which has the advantage of price and variety, including the 80%% share of the whole industry.

An expert analysis, mining machine sales has been the main profit model of China Construction machinery agents, with the sales profit of the whole machine less and less, agents open up new economic growth points become a trend.

In recent years, users' demand for maintenance services, spare parts supply, leasing and second-hand equipment has become more and more intense. Many agents have begun to focus on services and strive to pform into "service operators".

The survey shows that the total sales volume of construction machinery is relatively high in the total sales volume of agents, and 59% of the total sales volume of the agents exceeds 70%.

According to the international common saying, the profit produced by the post market place is about 7: 3 compared with the relative former market.

In the United States, the post market service industry is known as the "gold industry"; in Europe, the post market is also the main source of profit for the manufacturing industry.

Facing challenges, cost increase and product convergence

The "four round area" is a big consumer of steel consumption. As an important manufacturing base for construction machinery parts, Quanzhou's export products are famous for its high quality and low price. However, the recent sharp rise in domestic steel prices has weakened this advantage to a certain extent.

At the same time, high oil prices, tight supply of land resources, rising material prices, devaluation of the US dollar, and the expected high CPI operation have all affected the production, operation and export earning of machinery industry.

Recently, American economists predict that the growth of construction machinery industry in Europe may slow down this year due to the impact of the US recession.

Chen Hantu, general manager of Quanzhou Jiangxin Machinery Co., Ltd. also expressed his concern: "the industry is facing serious challenges of increasing costs and increasing competition, narrowing profit margins, low investment in technological pformation, convergence of products, and difficulty in improving internal quality."

According to Chen Hantu analysis, CIMS management systems have been implemented by major construction machinery manufacturers in developed countries, which plays a decisive role in improving the core competitiveness of enterprises in the world.

It is said that recently, Caterpillar, Hitachi, Komatsu and other international construction machinery manufacturers have planned to set up corresponding systems in China, improve and strengthen spare parts sales, set up excavator overhauling factories, and promote the sales of two mobile phones through equipment renovation and replacement with old ones.

Such an environment requires enterprises to surpass the realm of "cost advantage" and turn their attention to the substantial promotion of buyer's value, so as to get rid of the trap of price war and create excellent and lasting brands.

At the same time, through value innovation, enterprises can avoid high cost, high investment and high price under the conventional "differentiation" strategy, thus achieving a win-win situation between buyers and enterprises.

Expert analysis, another problem of China's construction machinery accessory industry is that the level of technological innovation is not high, which greatly restricts the development of the whole industry. Therefore, the next step is to increase the intensity of technological innovation in the whole industry, while ensuring product quality and technology level, and lowering the cost of products.

Explore and expand the industrial chain

Despite many challenges, the huge demand and rapid development of the domestic market still bring exceptional opportunities for the development of domestic construction machinery enterprises.

Experts believe that domestic market demand still has great potential for development, and there are at least 10 years of rapid development.

According to the analysis, first of all, China's infrastructure construction has not yet been completed. Hydropower, wind power, nuclear power, railways, highways, ports, oil fields and other construction investment are still on the rise. Secondly, China's urbanization is in the ascendant, and the development space of the real estate industry is still vast. Third, the new rural construction has provided broad market space for the development of the construction machinery industry; fourth, the development of the modern logistics industry has a significant pulling effect on the lifting machinery and forklift market.

According to the insiders, if the construction machinery industry is a sunrise industry, the field of construction machinery parts is one of the most dynamic parts.

At present, the field of accessories has entered a new stage of development. In this stage, enterprises should not only satisfy the needs of the domestic market, but also turn their attention to the international market, actively go abroad and participate in the international market competition.

Jiang Jinlong believes that in order to enhance the core competitiveness of the industry, the Quanzhou production area must compete in the industrial chain.

He said that we should start with expanding the upstream industry chain, start with steel products, or develop downstream production.

Two years ago, Qixing has begun to expand its upstream industry. In the past two years, it plans to develop the whole machine for excavators.

In order to find a way to break through the bottleneck, Jiang Weidong attended the China NC exhibition.

He saw a number of high quality, heavy and super heavy domestic CNC machines, such as the five axis and five linkage high-speed CNC machine tools of Shenyang machine tool group, the high-grade CNC grinder for large blade finishing, and the new type of five axis linkage machining center.

Inspired by this, he has new ideas about industrial development.

Jiang Weidong said: "machine tools have always been regarded as the mother machine of the equipment manufacturing industry, and the CNC system is the" brain "of CNC machine tools and numerical control equipment.

Over the years, due to the weak foundation of research and development of CNC hardware and software in China, the lack of technology accumulation, the weak strength of R & D team, and the insufficient investment in R & D, the gap between domestic CNC system and its performance abroad is quite large.

From this machine tool exhibition, the performance, function and reliability of the domestic CNC system have been greatly improved, and the gap with foreign countries has been shrinking.

According to Jiang Weidong analysis, the Quanzhou machinery industry has developed from the small workshop of the family. Because of its small scale, people, wealth and material resources are relatively limited, they are unable to manage a variety of products to spread risks, and can not compete with large enterprises in the large-scale production of a product. Therefore, they can choose to invest limited human, financial and material resources to those small markets neglected by big enterprises, focus on the operation of a small product, constantly improve product quality and improve production efficiency, so as to gain a firm foothold in market competition and achieve greater development.

A senior member of the Quanzhou machinery industry believes that the machinery industry in Quanzhou is heading for a new journey in the equipment manufacturing industry.

Some large overseas equipment manufacturing giants have entered Quanzhou intensively, boosting the intensive construction of industrial bases, and due to geographical advantages, Quanzhou can undertake the industrial pfer of Taiwan's machinery and equipment industry.

"From the similar successful experiences of other countries in the world, it is one of the most effective ways for many small and medium-sized enterprises to survive and develop in the fierce competition by choosing specialized market segments that enable enterprises to play their own advantages to carry out specialized management, and taking the road of growing up with special compensation, small subsidies and high professional skills."

Yang Yuangong, chairman of Quanzhou Hengtong Machinery Parts Co., Ltd., said that after being strong and practical, enterprises can learn from the experience of Caterpillar and other enterprises, expand product structure through mergers and acquisitions, industrial chain extension and other ways, vigorously explore overseas markets, implement diversification strategy, and develop and expand themselves rapidly.