With the exception of a few companies, Changsha construction machinery companies are generally not large scale, but regardless of the size of the company, the ability to compete with the mainframe products, the production of accessories is not interested. Due to the lack of suitable supporting manufacturers in the province, some companies have to implement global procurement in order to resolve the contradiction of insufficient local matching capacity. This will inevitably increase production costs, dilute corporate profits, and weaken their competitiveness. Currently, 70% of the purchased parts and outsourcing parts of the host companies such as China United and Sany are not in Hunan. Among them, diesel engines, transmissions, automotive air conditioners, special-purpose automobile chassis, high-strength steels, special welding electrodes, motors, wear-resistant materials, etc. Almost all rely on supply from outside the province and even abroad, only the amount of outsourcing auto chassis purchased by Sany and China United each year exceeds 1 billion yuan. Even some products with low technological content, such as some castings and structural parts, have to get Tianjin and Shanxi to do it. An executive from Zoomlion told reporters that this situation not only increased the company’s procurement costs, but also that some key components and parts, the better the market situation, because the supporting companies must give priority to ensuring the supply of local host companies, often Delayed delivery to these foreign companies has severely affected our production and operations.
However, the Changsha local government did not consider too much about the construction of the supporting service system for the specialized parks for construction machinery, bonded areas, and transportation lines in the construction of the park, and did not form a pattern of systematic service for one game.
In addition, the products of the backbone enterprises of Changsha Construction Machinery are highly similar and the resources are wasted. For example, the leading products of Sany and China United have concrete transfer pumps, pump trucks, and asphalt pavement pavers, and their technical levels are comparable. In addition to the two outside Changsha, there are at least three companies that produce concrete pumps. This will inevitably make the competition among Changsha construction machinery enterprises more fierce, and has already started the smoke-filled price war and even led to unscrupulous vicious competition.
There are 18 categories of construction machinery in China. In terms of concrete machinery alone, Changsha's products have already accounted for more than 70% of the domestic market. Followed by truck cranes, Zhonglian Puqi is the second domestic brand, accounting for about 30% of the market. At present, the rising space of leading products in Changsha is not large, and hydraulic static pile driving machines like Shanhe Intelligent have little market capacity despite advanced technology. The products with a wide range of products are excavating machinery and shovel transportation machinery. SANY and Zhonglian all want to expand in this area. However, the progress is not satisfactory. Shanhe's intelligent digging products have opened up a world.
The reporter finally thought of the "Marshall dilemma." The competition produces competitive benefits and concentrates on economies of scale. It is difficult for both to have both. Although Changsha Engineering Machinery has not achieved relative concentration and lost its due scale benefits, it may be that this competitive situation has maintained its vigor and vitality.