How can the market for construction machinery increase by 500 billion in five years?

Although there is no authoritative statistics yet, it is predicted that in 2010 China's construction machinery industry's total revenue may reach 400 billion yuan. According to the forecast of industry professionals, the sales revenue of construction machinery in China is expected to reach 900 billion yuan by 2015.

In five years, another 500 billion yuan will be added to the market. This is not only the effect of China's economic take-off, but also related to the rise of a large number of powerful state-owned and private enterprises. In terms of turnover, two major companies in China have squeezed into the top ten of the 2009 world engineering machinery company.

However, behind the outbreak of the market, all parties have also seen that a series of difficulties still limits the speed and space for the development of enterprises. The most important point is innovation.

How to do innovation?

According to the data from China Construction Machinery Industry Association, in 2009, XCMG and Zoomlion were among the top 10 machinery companies with the largest turnover in the world. However, the gap between the sales of Chinese companies and the top few is still not small.

The first to third are Caterpillar, Komatsu (Japan), and Hitachi Construction Machinery (Japan) from the United States, with sales of 18.1 billion U.S. dollars, 13.7 billion U.S. dollars, and 6 billion U.S. dollars. XCMG and Zoomlion were ranked ninth and tenth respectively, with revenues of US$3.5 billion and US$3 billion, respectively.

On the other hand, China's total sales of construction machinery in 2009 was 310 billion yuan. In other words, the global sales of the Caterpillar family accounted for 39% of China's current sales.

“The Chinese industry needs to produce world-class large-scale enterprises. There are opportunities, but it still faces many challenges. For example, the management mode and technology of the company all need innovation.” Zhan Chunxin, chairman of Zoomlion, told the reporter of “First Financial Daily” Indicated.

To achieve the best results in research and development, we must participate in large-scale research projects, stand in a higher perspective to see the market, so as to master the world's most advanced technology. For example, in the past 10 years, of the 70 studies completed by the company, 22 were R&D projects of the Chinese government.

The company's innovative philosophy is to not only introduce new products, but also to focus on the development of standards for the major components of the product line, and to minimize product complexity to optimize the efficiency of product manufacturing and assembly processes.

Sany Heavy Industry President Xiang Wenbo emphasized that the method promoted by Sany Heavy Industry is to regard innovation as “engineering”. "Reliance on several projects and several independent technologies cannot sustain the long-term development of the company. The company has established a 'engineering innovation platform for engineering machinery'. The management behavior of this innovative organization is to systematically plan technological innovation from a strategic perspective."

He said that Sany Heavy Industry will use at least 5% of its sales revenue for R&D each year. The construction of innovation platforms is mainly a combination of introduction and cultivation. In total, there are 1,800 PhDs and 50 senior experts who are leaders in the company's innovation team. By.

How to develop new products?

In addition to innovations in strategy and ideas, how should new products be developed?

First of all, the core components and core technologies have always been in the hands of individual overseas companies, and they have always been one of the problems that cannot be ignored by corporate executives.

At present, most hydraulic components and transmission systems in the Chinese machinery industry are imported from abroad. With the rapid expansion of domestic production capacity, overseas parts companies often delay delivery periods and supply shortages.

The reporter learned from the relevant person in charge of a foreign company that works as a hydraulic part that the delivery period of some products can even reach 18 months.

For Zoomlion, if we expect to hold the right to speak in key technologies without being constrained, we must occupy the high ground in the formulation of standards.

Guangxi Liugong Group Co., Ltd. and Liu Xiaohua, chairman of Liugong Machinery Co., Ltd., also pointed out to reporters that the current gap between Chinese companies and overseas companies is mainly the gap in international technical standards. “We hope to make up for (standard gap) through acquisition, introduction and independent research and development of products, of which independent research and development will account for more than 60%. Many of the engineering machinery software is purchased from Japan, we also visited Japanese companies, professionalism is also worth to learn from."

In Wang Xiaohua's opinion, the number of construction machinery manufacturers is already large, and it also goes to the international market, but it does not represent strong growth. "(The company's) specific work is to focus on the basic components of research and development to do vigorous research and development; through production, research, and improve the intellectual property of the gold content; In addition, also prepared to increase the research and development capabilities and technology in castings, rough parts."