Domestic Concrete Machinery: The Road to Change

Recently, at the Central Water Conservancy Work Conference, President Hu Jintao emphasized the need to regard water conservancy as a national infrastructure priority area, and strive to fundamentally reverse water conservancy construction by lagging behind for five to 10 years. Combining the four years invested by the Central No. 1 Document at the beginning of the year to invest RMB 4 trillion in the construction of water conservancy infrastructure, the construction of affordable housing, and the construction of subways, many companies have already smelled new business opportunities. Fujian Xinda Machinery is one of them.

Wang Jianxiong, deputy general manager of Fujian Xinda Machinery, told reporters that there are 10 concrete equipment manufacturers in Quanzhou, Xinda was established at the latest, but by 2010 the overall strength has been second only to the southern road machine. In the domestic industry, Cinda's popularity has gradually expanded; currently, Cinda Machinery has an average monthly production capacity of 20 sets, with an average annual output value of more than 700,000 yuan, far exceeding the industry average of more than 500,000 yuan per person.

During the interview, the reporter found that “To be a generation, to reserve a generation, and to develop a generation” is a long-term business philosophy of Cinda Machinery. "Eating in a bowl, but also watching the pot, but also think of the ground," This is the attitude of technology research and development Cinda Machinery has always been adhering to, that is, the so-called technical forward-looking, always one step ahead of the competition, Adhere to the needs of the market, do not seek large, but fast, fine; to do the leader in specialty areas and even subdivided products, is Cinda Machinery's unique cheats.

The lack of original technology, restricting the development of the industry In the 1980s, most of the concrete mixing equipment for domestic large projects was imported from Germany, Italy, and Japan. Subsequently, some state-owned factories began to make simple mixing equipment. In the 1990s, several domestic Ministry of Water Resources, several subordinates of the Ministry of Communications, and private southern roads, and several large-scale engineering and equipment mixing companies emerged in the country. The technical level of the industry has further improved. After 2000, domestic equipment has basically been able to meet domestic engineering needs.

Wang Jianxiong told reporters that since the "Eleventh Five-Year Plan", the central government has taken railway construction as an important point in expanding domestic demand and maintaining growth, increased investment, expanded the scale of construction, and set off a new upsurge in railway construction, also bringing concrete machinery and equipment manufacturers An unprecedented development opportunity has come. In the past two years, the development of the entire industry was at its peak, and there was a time when the market was in short supply, and "who has a product, he bought it."

“Looks like a surprise, really sad!” Wang Jianxiong frankly stated frankly that at present, more than 80% of the domestic concrete manufacturers are market-driven, externally-pulled, where there is demand and where they are drilled; this is a typical opportunity. Type companies, eager for instant success, and speculation, in order to obtain rapid returns, serious plagiarism of products, serious homogeneity, unsatisfactory quality, vicious price competition, lack of investment in technology research and development, lack of service dislocation, small scale, weak internal strength, and little “original” The products laid a hidden danger for the healthy development of the entire industry; later, only a small number of powerful companies transformed the equipment manufacturing process and appearance into partial or detailed transformations. The phenomenon of counterfeiting and imitation in the industry was serious, and the competition for product homogenization became increasingly fierce. . Almost all industries are in the Great Leap Forward!

Wang Jianxiong stated that the large investment in research and development of new products, slow recovery time, risks, and weak technical research and development are the main reasons why most domestic concrete equipment manufacturers are reluctant to take the “original” route. From the perspective of high-end technology and product reliability and precision, there is still a big gap between China-made concrete equipment and top companies such as German BHS, Liebherr, and Japanese products. This is determined comprehensively by factors such as basic materials, processes, design concepts, design methods, and manufacturing processes, as well as the supporting maturity of the industry chain. It is difficult to catch up in the short term. “Today, we will not adjust ourselves and we will be adjusted tomorrow.” Wang Jianxiong emphasized that if companies do not take the initiative to innovate to guide market consumption, they will passively innovate. On the one hand, they will restrict the development of the entire industry. On the other hand, when the seller’s market shifts to the buyer’s market, In the future, many companies will be eliminated. At present, this situation will soon come. It may be said that "the rain is coming and the wind is full of buildings." Cinda Machinery realized early on that it was aware of the current situation, and foresighted the Prophet, always seeking a breakthrough! Michael Porter, an expert in segmentation field and a leader in innovation route management, once said that starting a business in a narrow market (ie, a small target market) becomes a leader in market segments. This is a focused strategy. It is also a competitive strategy that SMEs should adopt first. Many European and American companies, for example, are not very large in scale, but they have long insisted on taking the route of technological development and taking the best route to achieve the first in the world in many subdivided product areas. This is the so-called “invisible champion”, which is very worth learning. .