Fog of construction machinery industry has become overly aggressive

"In the market, there are only a few hundred cement pump trucks in less than six months. This is no way to do it." On June 26, Mr. Li, the owner of the pump truck in Liaocheng City, Shandong Province, launched a complaint to reporters of the “China Sankei Shimbun”. “Last year last year, there were more than 100 pump trucks in Liaocheng City, and more than 400 vehicles emerged in the first half of this year. The distributors completed the sales tasks for the whole year, but the construction sites are so numerous, and there are too many porridges. ?"

Mr. Li began to miss the good times of the past: At the beginning of last year, he saw more and more high-rise buildings on the construction site. When the supply of cement trucks to high-rise buildings was in short supply, the barber shop in his hand was transferred out and mortgaged again. The loan, together with a down payment of more than 300,000 yuan, a loan to buy a cement pump truck produced by Sany Heavy Industries, transformed from a hairdresser to a boss of a pump pump worth millions.

In the beginning, he lived a lot and the price was reasonable. After operating for a period of time, Mr. Li wanted to purchase a pump truck again, and then he borrowed some money from his relatives, plus the 100,000 yuan to buy a car ticket sent by the first car manufacturer. Purchased a larger pump truck.

However, it was not long afterwards. In the second half of 2011, there were more and more pump trucks on the market in Liaocheng, and the owners of cars started to push down each other's prices. From the earliest cost of pouring more than 30 yuan per cubic meter of concrete to the current 10 yuan, they were able to work hard. Money is hard to be."

After entering 2012, under such fierce competition, the distributors of pump manufacturers did not slow down the pace of sales. Sany Heavy Industry and Zoomlion’s two major manufacturers of pump trucks have stepped up their promotional efforts. The past down payment of 30% and 20% can be used to drive the car away. The so-called collateral is just a symbolic walk.

The low threshold has attracted many people to join quickly. Mr. Li told reporters that some people had more than 100 pump trucks under their name. Less than half a year, they had conservatively estimated that there were more than 400 pump trucks in Liaocheng City. The distributors completed the sales tasks for the whole year.

Behind the hot sales is the owner's operating pressure and loan repayment risk. Mr. Li calculated for the reporter that a pump truck needs to repay about 200,000 yuan a month for repayments, fuel money, driver salaries, maintenance, etc. Now that the pump truck has done more than 100,000 yuan a month, Most people are basically making and drinking at a loss.

At the same time, the malignant expansion also began to have many problems. It is understood that many dealers are only responsible for selling cars and do not pay attention to training. Many pump truck drivers do not have operation permits. Safety accidents occur from time to time. At the end of last year, two drivers died of coal gas poisoning due to detention on the site. Some people have been sued for alleged contract fraud because of poor management due to poor management. They are still detained in detention centers.

In the fierce competition environment, some people started to pump trucks out. In the spring of this year, Mr. Li also sent a pump truck to Baotou, Inner Mongolia to rent out to relieve the pressure, but the high shipping costs are not small. Expenses.

At the same time as the owner complained, some pump truck dealers have had a hard time. With the intensified competition in the industry and the shrinking market, it is difficult for the construction machinery industry to recover overdue debts to become the most troublesome issue for most agents. Overdue claims are also called "bad debts." Bad debts that are not returned may not only affect the business, but also cause companies to collapse.

A local agent said: “Our industry is rather special. Many customers purchase pump trucks in phases. An ordinary pump can cost more than RMB 1 million and as much as several million RMB, so a car will not come back. Our loss is hundreds of thousands, and in the long run, my business simply can't stand it.

It is understood that overdue claims have become a problem in the construction machinery industry and will even push the company to the brink of collapse. Many large-scale construction machinery sellers have set up a special "law department" to solve the debt problem.

In this regard, a salesman of a large engineering machinery company pointed out that a dilemma currently encountered by construction machinery is that companies can only continue to implement the mode of financial leasing, that is, low down payment sales. If this is not adopted, market share will soon be Stolen by competitors, but the implementation of financial leasing model, but also worried that if the economic situation continues to be bad, some accounts will not come back.

In fact, the dilemma of Shandong Liaocheng pump market is only a microcosm of the construction machinery market. From the beginning of 2011, the construction machinery market has gradually declined. In this year's peak season, the construction machinery market is still weak, and new infrastructure investment has started. Those who are optimistic about the construction machinery market still do not see the market revitalization. However, companies are constantly expanding. There are signs that the construction machinery industry has gradually given birth to a bubble under the situation of large-scale expansion.

According to Zhang Zhongjie, senior industry analyst at Essence Securities, due to the increase in sales promotion in the industry in recent years, the receivables of various manufacturers in the construction machinery industry have been much higher than the growth rate of operating revenue since last year, resulting in a decline in the quality of profitability within the industry and sales of goods should be The collection period of receivables has been extended, and the proportion of operating cash flow to net profit has decreased significantly. It is also a net cash outflow from operations. From the data point of view, it appears to be more severe than the situation in 2008.

Affected by the country's macro-control policies, the growth rate of real estate and infrastructure investment continued to fall, and the downstream demand for various types of construction machinery products saw a year-on-year decline. Zhang Zhongjie believed that the industry's economic prosperity began to enter the “winter season” in the second half of last year and is still in a trough. Hey.

According to Liu Zhipeng, an expert in engineering machinery and a managerial partner of Shilue Management, although the decline in China's construction machinery industry is not very severe, it is expected that revenue and cash flow will not be very good, and industry competition will intensify.

According to an engineering machinery analyst, the development of China's construction machinery industry is in the history of the world’s engineering machinery. It is now a terrible time. Although the current development situation is still very good, Sany Heavy Industry and Zoomlion have taken a cool view. The competition is too intense.

The analyst said that the construction machinery industry is a phased industry, and the current competitive landscape is very good, but some companies use capital support to expand market share and over-market marketing, which may cause future market overdrafts.

"Some companies exchange orders and sales by reducing down payment. Some customers are buying for a short period of time. Over time, many machines are idle and unused, resulting in greater waste. Now, the second and third tier cities have not yet fully penetrated. But space will not be too big. Equipment in some places has been idle. This must be taken seriously." The analyst told reporters.

According to the “Twelfth Five-Year” development plan of the Chinese construction machinery industry, it is predicted that by 2015, the industry’s sales scale will reach 900 billion yuan, with an average annual growth rate of 17%. The steady growth of investment in fixed assets is still an important driving force for the growth of the construction machinery industry, including the development of water conservancy construction, affordable housing, highways, and airport construction. However, whoever insists on sharing this piece of cake still needs market testing.