According to industry analysts, the construction machinery industry is undergoing a "deep adjustment period" such as severe overcapacity, sluggish market demand, and sharp decline in profits. In the long run, construction machinery is mainly driven by two factors: population and economic growth, which are reflected in indicators. The long-term potential indicator of construction machinery is the urbanization rate. China's urbanization rate has just exceeded 55%. From the experience of developed countries, a country's urbanization rate will not complete the large-scale construction process until 75% to 80%. China's current urbanization rate is increasing by about 1 percentage point per year. Based on this, it is estimated that China's construction machinery is still facing about 20 years of growth. The domestic construction machinery industry is greatly affected by the cycle, and it will take some time to destock.

So, what impact does the domestic and foreign environment have on construction machinery?

The battle of transformation: China's manufacturing will usher in the golden five years

On May 28, 2016, in the "Battle of Transformation: Made in China Starts Again", Wu Xiaobo pointed out that with Internet tools, new craftsmanship and capital operation, China's manufacturing industry will achieve transformation and upgrading, and in the next five years Will be golden five years made in China.

In this transformation class, you will often hear such stories, and it seems to be confirming the arrival of the golden five years: a foreign trade OEM company spent 5 years to make a headset, not only It has been hailed as an innovative product of the year by the "Wall Street Journal" and other media, and has also entered Apple's stores; a retail industry achieved billions of dollars in sales last year through innovation; a clothing company is building flexible production lines for companies including Jack Ma, Liu Chuanzhi and other custom clothing...

For the transformation and upgrading of Chinese manufacturing, the private sector is working hard to promote it, and it is even more strongly promoted by the top-level design of the country. On May 8, 2015, the State Council officially issued "Made in China 2025", which is the program of action for the first ten years of the Chinese government's implementation of the strategy of manufacturing a strong country. A year later, the General Office of the State Council issued the "Several Opinions on Carrying out the Special Action of "Three Products" in the Consumer Goods Industry to Create a Good Market Environment, proposing to implement the Party Central Committee and the State Council's proposal to promote the supply-side structural reform and promote the steady growth of the industry and adjust the structure. The decision-making and deployment of increasing efficiency and building a strong manufacturing country will better meet and create consumer demand, continuously strengthen the basic role of consumption in driving the economy, and promote the consumer goods industry to move towards the mid-to-high end.

Industry 4.0 will increase China's production efficiency by 25%

In the 13th Five-Year Plan formulated by the Chinese government, Industry 4.0 and the "Made in China 2025" strategy are listed as top priorities. Two recent reports from the Boston Consulting Group (BCG) show that the use of new industry 4.0 technologies will increase the production efficiency of Chinese enterprises by 25%, thereby creating an additional value of 6 trillion yuan and affecting millions of employees. work.

On May 17, BCG Global Partner and Managing Director Du Wei, Global Senior Partner and Managing Director Cai Lujie, Global Managing Director Xu Yang and Global Managing Director Christian Guse accepted the 21st Century Business Herald in Beijing. 's interview.

The BCG report points out that while it will take 20 years to fully implement Industry 4.0 technologies, the dramatic advances in technology over the next 5-10 years will keep the gap between losers and winners widening. Xu Yang believes that in this process, Germany is undoubtedly at the forefront, and the speed of other countries depends on the government's willingness and industrial foundation of each country.

"China actually has a late-mover advantage, because if the Chinese government is determined to do one thing, the resources, policies and funds that can be invested will easily attract advanced technology." However, Xu Yang also said that we should be wary of the image of Industry 4.0 engineering, but to systematically upgrade China's manufacturing and industrial chains.

The BCG report identifies nine digital industrial technologies that will be key to the success or failure of Industry 4.0, including autonomous robotics, additive manufacturing, augmented reality, simulation, horizontal and vertical system integration, industrial Internet of Things, cloud computing, cybersecurity and large-scale data analysis.

Despite the gap in autonomous robot production, Du Wei pointed out that China has clear advantages in big data analysis and cloud computing, especially in the service industry, which will also be developed in the industrial sector. "China's Internet ecosystem development should be said to be leading in the world, at least not lagging behind other developed countries."

National policy support to fully promote engineering construction

The construction of the Central Yunnan Expressway has been accelerated, and 14 projects have started construction

At the promotion meeting for the construction of the Central Yunnan Expressway project held on May 19, it was learned that 14 projects of the Central Yunnan Expressway Ring Road have been under construction, and the remaining 2 projects will be approved for construction by the end of the year. The construction of the Central Expressway Ring Road was further accelerated.

According to reports, the total scale of the expressway network in the Central Yunnan Economic Circle is about 3,784 kilometers, of which 1,820 kilometers have been completed and opened to traffic, and 764 kilometers are under construction. During the "Thirteenth Five-Year Plan" period, 1,200 kilometers of expressways will be added. Among them, the expressway ring line is 553 kilometers, of which 183 kilometers have entered the Guogao Network, and the remaining 370 kilometers are striving to enter the Guogao Network; the radiation line is 337 kilometers, which has entered the Guogao Network 119 kilometers of contact lines; the contact line is 310 kilometers, which has entered the Guogao Network. Net 100 km. The expressway network of the Central Yunnan Urban Economic Circle covers 7 counties in Kunming, Qujing, Yuxi, Chuxiong and the northern part of Honghe Prefecture, and 49 counties (districts) are connected to expressways.

Development and Reform Commission approved fixed investment projects of 138.8 billion in April

On May 12, the National Development and Reform Commission released the macroeconomic operation and responded to hot issues, saying that in April, the National Development and Reform Commission approved 13 fixed asset investment projects with a total investment of 138.8 billion yuan. Including 3 water conservancy projects with a total investment of 800 million yuan; 4 transportation infrastructure projects with a total investment of 128.8 billion yuan; 2 energy projects with a total investment of 6.7 billion yuan; 2 high-tech and informatization projects with a total investment of 400 million yuan ; 2 other projects with a total investment of 2.1 billion yuan. It is reported that these projects are mainly concentrated in the fields of water conservancy, transportation and energy.

The two ministries advocated that the government buy domestic products to promote the transformation and upgrading of the manufacturing industry

On May 18, the National Development and Reform Commission and the Ministry of Industry and Information Technology issued the "Notice on Implementing Major Engineering Packages for Manufacturing Upgrading and Transformation" (hereinafter referred to as the "Notice"), clearly implementing major engineering packages for manufacturing upgrading and transformation, insisting on innovation-driven coordinated development, and coordinating the promotion of traditional Industrial upgrading and the development of emerging industries have promoted the manufacturing industry to be high-end, intelligent, green and service-oriented, and identified 10 key projects including intelligent transformation, basic capability improvement, and green manufacturing promotion.

10 major projects to promote the transformation and upgrading of the manufacturing industry

Teng Tai, Dean of the China Academy of Economic Research, analyzed that "hard wealth" like manufacturing should also increase soft value, which requires the transformation and upgrading of our manufacturing industry.

The "Notice" pointed out that through three years of efforts, the added value of manufacturing above designated size will increase by more than 7% annually, and the investment in technological transformation of enterprises will increase by about 15% annually. Establish the concept of "the government buys domestic products", and support domestic innovative products through the government's first purchase, ordering and purchasing services.

"In times of difficulty in the manufacturing industry, the government should play a leading role." Lian Ping, chief economist at Bank of Communications, said that "the government buys domestic products" is also an international practice.

However, Wang Jun, deputy director of the Information Department of the China Center for International Economic Exchanges and a researcher, especially reminded that such a policy must be carefully measured and must not become a long-term and mandatory policy, so as to avoid the occurrence of "enterprises lying in the arms of the government".

Ministry of Commerce: Investment in countries related to the "Belt and Road" has grown rapidly

According to statistics, from January to April, my country's foreign non-financial direct investment was 391.45 billion yuan (equivalent to 60.08 billion U.S. dollars), a year-on-year increase of 71.8%; the new contract value of foreign contracted projects was 384.02 billion yuan (58.94 billion U.S. dollars), a year-on-year increase. An increase of 3.8%; at the end of April, there were 983,000 laborers of various types abroad.

The person in charge of the Cooperation Department of the Ministry of Commerce pointed out that from January to April, my country's foreign investment business showed the following characteristics:

First, the number of infrastructure projects undertaken by our company has increased. From January to April, our company contracted 2,133 overseas infrastructure construction projects, an increase of 40% over the same period of the previous year, with a newly signed contract value of US$43.25 billion, accounting for 73.4% of the newly signed contract value of my country's foreign contracted projects during the same period. Among them, there are 105 projects with a contract value of more than 100 million US dollars, involving 39 transportation construction projects such as ports, railways, highways, airports, etc., with a cumulative contract value of 12 billion US dollars. The main projects are China Harbour Engineering Co., Ltd. contracted for 933 million US dollars The Abidjan port project in Côte d’Ivoire, the new terminal building project of the Algeria airport contracted by China State Construction Corporation for 823 million US dollars, etc.; 16 power engineering projects, involving a contract value of 6.81 billion US dollars, the main projects are Shanghai Electric Power Transmission and Distribution Engineering Co., Ltd. Congo (Kinshasa) power transmission and distribution package contracted for US$1.617 billion, etc.; 21 communication construction projects with a contract value of US$5.28 billion.

The second is the rapid growth of investment and cooperation with countries related to the “Belt and Road” initiative. From January to April, Chinese enterprises have made direct investments in 49 countries related to the "Belt and Road", with a total investment of 4.91 billion US dollars, a year-on-year increase of 32%; our enterprises have contracted foreign engineering projects in 60 countries related to the "Belt and Road". There were 1,401 projects, with a newly signed contract value of US$31.12 billion, a year-on-year increase of 58.9%, accounting for 53% of the newly signed contract value of my country's foreign contracting projects during the same period. The Egyptian Hannawi coal-fired power station project contracted by Shanghai Electric Group for US$2.636 billion is the largest contracted project won by our company in the countries related to the “Belt and Road” in the first four months.

The third is the rapid growth of investment in the service industry. From January to April, China's outbound investment in the tertiary industry amounted to US$43.84 billion, a year-on-year increase of 73.2%, accounting for 73% of the total outbound investment during the same period. Among them, the investment in scientific research and technical services, accommodation and catering, culture and sports entertainment, and education has achieved a rapid growth of more than two times.