China Construction Machinery landing overseas emerging markets are facing opportunities and challenges-Jiangyin Shuangma Heavy Industry Equipment Co.,ltd

China Construction Machinery landing overseas emerging markets are facing opportunities and challenges

In the past, China Construction machinery industry has been a strong impetus to the economic stimulus plan, the industry has experienced a leap forward development, by 2011, regardless of brand or production capacity has reached the highest peak in history. However, with the end of the stimulus plan, the market demand for space began to shrink, overcapacity and excessive overdraft market, resulting in the industry's rapid stagnation and regression.

Now although the mainstream of the world economy is still in recession, but we can still see infrastructure investment in some countries in the region to continue to increase, such as Brazil, India, Turkey and other countries and Africa, the Middle East and other regions. This provides opportunities for the major host manufacturers to expand overseas emerging markets.

Overseas equipment purchases and demand growth in emerging countries

Turkey due to special geographical position and between the Eurasian continent, with exchanges increasingly close, it has become connecting the Eurasian continent is an important transportation hub. Therefore, in order to meet the needs of the new, the Turkish government announced a world-class engineering projects will be launched in the next few years, for example, Istanbul will be built the world's largest airport (all after the completion of the expected passenger capacity will reach 1.5 million passengers). Recently the government of Turkey also announced that it will invest $6 billion to start the Black Sea and the Black Sea and the Aegean Sea canal engineering projects, etc..

India plans to increase infrastructure investment in the country within 2012-2017 years, and is expected to spend $1 trillion. Because in recent years, India's economic index has been in a high level of development, and the supporting construction and engineering related to the manufacturing industry development is relatively slow, so the current local Indian only about 28% of the machine can adapt to the domestic market, the construction in India needs more overseas equipment involved. China as India and neighbouring construction machinery power, not only can provide cost-effective products and geographical location advantage, take advantage of this, China to supply India equipment can than in Europe and the United States relationship more than doubled the time (from order to the site put into use).

Brazil as one of the four BRIC countries, over the past 30 years the government each year on infrastructure investment accounted for the proportion of GDP from 3.6% down to 1% in Brazil from power, port and transportation to construction of people's livelihood are seriously lagging behind in the speed of its development, on the one hand, limits the sustainable development of economy, on the other hand also to Brazil, the local people's life inconvenience. In order to change this situation, Brazil set off a frenzy of "infrastructure". 2012 for all types of infrastructure projects with a total investment reached $480 million, including a total investment of $232 billion energy projects, $140 billion housing projects and $52 billion transportation projects, and urban transformation and water quality improvement and other areas of key projects. Also Brazil as one of the most development potential of the countries in the world, the future market scale of no limit (currently construction machinery market in Brazil all kinds of product sales in the global share of ratio of 3.5%, in the Latin American region accounted for is as high as 40%).

At present, although emerging countries demand for engineering machinery is still relatively limited, but because of the shortage of the domestic infrastructure construction, the future demand for related products will steadily rising, and its manufacturing and it is difficult in a short period of time meet their needs, so this to hurry to go out of the predicament of Chinese construction machinery enterprises will be a rare opportunity.

Advantages of Chinese construction machinery in overseas market

China Construction Machinery in overseas emerging markets have certain inherent advantages.

First of all, China's manufacturing after years of development and spread in the emerging countries has a special significance, so the construction machinery made in China will be more easily understood and accepted by the local people.

Secondly, China engineering machinery brand value and technical level while still have a large gap with the developed countries, but China machinery has to meet the actual needs of the emerging countries and because both are developing countries between have a lot in common, so the equipment is more conducive to the use of local.

Finally, China Construction machinery after a leap in the past two years, cultivate the large number of practical talents with professional skills, improve the enterprise operation system, improving and strengthening the performance of all kinds of products. And along with the recent years to upgrade China's soft power promotion, the made in China brand image and China's overseas investment and enthusiasm continues to heat up, for Chinese enterprises can successfully landing in emerging markets overseas and to lay a solid foundation.

Challenges facing China Construction Machinery in overseas market

With the worldwide engineering machinery market demand plummeted, developed countries to emerging market development efforts also in strengthening, such as China Construction machinery with South Korean and Japanese companies overseas competition has intensified, while they are in the process of overseas market competition in China has relatively strong competitiveness.

First of all, the two countries have a wealth of enterprises in the global plant, R & D, production, sales and management experience. Second, the price of the product also has a certain competitiveness, especially the recent yen by the Japanese government to intervene in a substantial devaluation, to create a favorable condition for its exports.

And from the point of view of China's domestic situation, the export of Chinese engineering machinery enterprises also faces a lot of pressure, for example, the renminbi "or outside demoted", in recent years by the global financial crisis influence monetary under the lead of the dollar devalued and the yuan continued to be strong and at the forepart reached the highest point in history (1 dollar 6.13 yuan) and according to authoritative assessment of the RMB appreciation trend will continue, and this impact on the mechanical engineering is huge, on the one hand, resulting in products cost growth (including labor, material and so on) and other exchange rate rise let the profitability of enterprises decreased. It is understood that a $100 thousand overseas list, the RMB rose 100 basis points, the enterprise will lose 1 thousand yuan. In addition, the lack of a strong core components of the R & D, production manufacturers, of the core components of the hosts of domestic manufacturers rely heavily on imported from overseas manufacturers, which not only increases the burden on the operator console manufacturers, but also made the Chinese engineering machinery industry development controlled by others.

Therefore, Chinese construction machinery enterprises to overseas development is one of the directions of the future development of the industry, although faced with many opportunities and challenges. But throughout Carter, Hitachi, Doosan enterprise development process, in order to seek overseas market will be China's engineering machinery enterprises "compulsory" one of the.

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