2019-08-30 16:06:23

Ecological Balance of Construction Machinery Industry in China

Abstract: Over the past 10 years, excavator manufacturers have been offering innovative marketing strategies such as "zero down payment, replacement of old for new, three-and-a-half-price recovery, lifelong free warranty" and so on, but few people have carefully assessed the risks and harms these radical practices have brought to agents. Irrational, with the current marketing climate unchanged, the future of the industry will also become bleak. Therefore, rebuilding the ecological environment and development rules of construction machinery industry is the top priority of the industry.

 

Talking about Yellow Croaker in Zhoushan

 

Over the years, Chinese people have been very fond of eating yellow croaker, especially wild yellow croaker, which is the most delicious seafood on our childhood table. In order to catch more wild yellow croakers and earn more money, Chinese fishermen have adopted a barbaric "knocking operation", that is, dozens of boats knocking bamboo board together, so that two otoliths in the skull of yellow croaker resonance, big fish and small fish fainted together, a net was exhausted. This extinct fishing method brought the catch of yellow croaker to a record high of 1974 of 1977,000 tons, but also devastated the wild yellow croaker. In 1994, the catch of yellow croaker dropped sharply to 20,000 tons. After entering the 21st century, there are almost no fish in China's coastal waters, and all the top ten fishing grounds in China are extinct. Wild Pseudosciaena crocea has basically disappeared.

 

Not only fishery resources, but also China's forest resources are experiencing devastating deforestation. When traveling in Sweden and Norway, I often ask myself a question: Why did their ancestors leave green mountains covered with forests, while our ancestors left bare mountains? Later, I learned that these countries have strict legislation that requires the same amount of small trees to be planted after cutting down. Trees to keep the forest alive.

 

Therefore, the question is not what our ancestors left us, but whether we have enough wisdom to maintain a good ecological balance so that these resources can become wealth in our hands, benefit mankind, and protect these resources, and leave sustainable development capital for future generations.

 

"Industry Ecology" is in jeopardy

 

The same is true of the development of China's construction machinery industry. Taking excavators as an example, from 2001 to 2011, the development of excavators in the Chinese market has gone through a golden decade, with a compound growth rate of more than 30%. However, due to the industry's eagerness for quick success and instant benefit, the crazy expansion of production capacity, resulting in a serious imbalance between supply and demand. According to Off-Highway Research in the United Kingdom, China currently has 538,000 excavators, far exceeding the global market demand. Manufacturers can only lower the threshold by lowering prices, lowering down payments and aggressive credit sales in order to sell more equipment.

 

However, the real demand of the market does not depend on the manufacturer's capacity. The short-term prosperity brought about by the 4 trillion yuan economic stimulus only realizes the future demand ahead of time. The artificial bull market created by various kinds of promotional means cannot last long. Breaking the balance between supply and demand will only give manufacturers, agents and banks. And users bring serious financial risks. When the market holdings far exceed the market demand, the return on investment of equipment will also be reduced, directly affecting the repayment ability of customers, resulting in an increase in the creditor's rights of agents, and a sharp increase in the risk of credit sales.

 

The pursuit of high profits destroys the ecological environment of the industry, and the ultimate result is to hurt everyone in the industry: manufacturers, agents and users. Over the past 10 years, excavator manufacturers have been offering innovative marketing strategies such as "zero down payment, replacement of old and new, three-and-a-half-price recovery, lifelong free warranty" and so on. However, few people have carefully assessed the risks and harm these radical practices have brought to agents.

 

Rule rebuilding: it's not too late to make up for lost sheep?

 

China's construction machinery market has declined rapidly for four consecutive years, and it may take several years for the crisis to pass. Faced with the severe market situation, have we ever thought: what caused the Great Depression of the construction machinery market? It's not too late to make up for it. If we don't learn the lessons, even if we survive the crisis, we will still make the same mistakes in the next crisis, which is also doomed!

 

China's economic growth rate has just dropped to 7%, and the construction machinery industry has felt the cold winter, but this growth rate is a luxury for western developed countries. In fact, in 2014, China's sales still exceeded North America's in the world's largest construction machinery market. Why can foreign construction machinery enterprises survive and develop under the economic growth environment of less than 2%, while we can not survive under the economic growth environment of 7%? The reason for the current crisis is not the slowdown of development, but the breakdown of the ecological balance of the construction machinery market, just like the fisheries and fisheries that we destroyed. Forest resources are the same. Not only did we irrationally invest a lot of excess capacity, choose a radical credit sales model, even sell a large number of components at a low price to the spare parts market when the market declined, but also foolishly shouted the slogan of "lifelong free warranty", strangling the post-market of construction machinery!

 

Foreign mature construction machinery market will also adopt credit sales mode, but those countries have perfect credit control system, and loans are purely commercial behavior between banks and customers. Banks have professional personnel to assess and audit the qualifications and assets of customers. If the repayment is overdue, banks will collect or leave. Legal procedure. China's business environment is different from mature foreign markets. In a country lacking a perfect credit system, it will inevitably pay a painful price to choose a radical credit sales model and make excessive use of financial leverage. If we do not sum up our experience and lessons, analyze the root causes of this crisis, and give up the wrong practices, we may repeat the mistakes of history.

 

When fishermen in Zhoushan Fishing Ground "mumble fishing", if they don't do so, yellow croaker will be caught up by others! When some people in the construction machinery industry put forward such crazy marketing measures as zero down payment, there will always be other enterprises following the trend, not that they don't know the risks, but that they are afraid that business will be stolen by others! Rationality, with the current marketing climate unchanged, the future of the industry will also become bleak. Therefore, rebuilding the ecological environment and development rules of construction machinery industry is the top priority of the industry.

 

In The Story of Purposes, Joey Lehman points out that the best companies in the world are those with lofty goals, hoping that what they do will make the world a better place. At the present stage, the biggest problem of the industry enterprises is to regard profit as the only pursuit of the enterprise, to transform the development of the industry into a competition of quick success and instant benefit, unscrupulous means and profit-seeking expansion, lack of social responsibility, no one fully considers the ecological balance and healthy development of the industry, which is exactly the development of China's construction machinery industry. The crux of the problem.

 

Huangzuan Machinery established in 2008, is a specialized manufacturer of bucket teeth, bucket adaptor and side cutter which is used Caterpillar, Komatsu, Hyundai, Daewoo, Kobelco, Hensley, Liugong, Hitachi, XCMG, XGMA, Volvo, Esco, JCB .etc.

 With production facilities covering an area of 18136 square meters and staff of 100, our annual processing capability equals approximately 12,000 metric tons. we currently have the technology of lost wax casting, precoated sand casting, resin sand casting, have the advanced instrument such as spectromaxx, Brinell hardness tester, universal testing machine, metalloscope.