**Abstract**
Recently, the Global Construction Machinery Industry Conference and the Top 50 Summit were held in Beijing. Industry leaders from around the world, including top executives from China’s leading companies, gathered to discuss economic trends in China and globally, as well as long-term industry developments. Despite the challenges, the event highlighted the resilience and transformation taking place within the sector.
Profit levels have dropped significantly. “The construction machinery industry is still largely traditional manufacturing. There's overcapacity worldwide, and in China, when economic growth slows below double digits, overcapacity becomes a major issue,†said Zhan Chunxin, CEO of Zoomlion, during the conference.
In 2013, global political and economic conditions were volatile, and the construction machinery industry, closely tied to infrastructure development, faced unprecedented difficulties. In the first half of the year, profits for major manufacturers fell by 42%. Companies responded by accelerating inventory reduction and cost-cutting, which only deepened the downturn.
China, now the world's largest construction machinery market with annual sales exceeding 500 billion yuan (about 80 billion USD), has also experienced similar struggles since 2012. However, with the concept of "new urbanization" gaining traction, the global community sees a strong signal that a new wave of investment is on the horizon. More attention is being directed toward China, and many are optimistic about its potential.
As traditional advantages like demographic dividends and foreign trade change, China is pushing for innovation across industries, aiming to move up the global value chain. Since the 2008 financial crisis, Chinese construction machinery firms have been working to upgrade their technologies and integrate into the global market. Notable examples include Xugong’s acquisition of German company Sany, Zoomlion’s purchase of CIFA, and Sany Heavy Industry’s acquisition of an elephant company — all reflecting efforts to leverage technology and global resources.
At the conference, Su Zimeng, Secretary General of the China Construction Machinery Industry Association, emphasized that China will remain a key driver of global economic recovery and growth. As the global economy adjusts, improvements in China’s industrial ecosystem and evolving market dynamics will help the construction machinery sector achieve higher-quality and more sustainable development.
Parallel forums, such as the "Global Excavator Summit," provided platforms for upstream and downstream stakeholders to address industry challenges and promote sustainable growth. The "China Top 100 Summits" brought together top executives from the country’s most influential hoisting companies, fostering collaboration and exploring win-win strategies.
Industry leaders believe that slower growth doesn’t mean a shrinking market, but rather an opportunity for companies to strengthen internal capabilities. A dealer in North China noted that equipment usage has stabilized after two years of decline, showing signs of improvement.
Zhan Chunxin added that the industry contraction period is critical for reorganization. Since late 2012, Zoomlion adjusted its strategy, focusing on quality management rather than just scale. By mid-2013, the company saw positive results: sales rebounded, operating income and net profit rose by 138% and 290%, respectively, while cash flow increased by 97.47%.
During the conference, the list of the top 50 global construction machinery manufacturers was announced. Total sales reached $199.765 billion, though growth slowed compared to previous years. Caterpillar remained at the top, while Xugong, Zoomlion, and Sany ranked fifth, sixth, and tenth, respectively.
Among the top 50, 26 companies reported sales growth, mostly from Europe and the U.S., while 24 saw declines, mainly from Asian firms. Despite this, Western companies showed resilience, leveraging experience and strength to recover.
However, total profits for the top 50 companies dropped by 5.46% to $21.075 billion, with only 15 companies seeing profit increases. Chinese enterprises, once dominant, now face a significant gap in both growth and rankings. Only a few, like Xugong and Zoomlion, continued to grow, while others saw declining sales.
Market fluctuations in China have played a role. Since 2011, the industry moved from double-digit growth to medium-speed growth, leading to increased competition and a post-competitive phase.
Xu Min, Chairman of Xugong Group, emphasized the need for technological breakthroughs. “We’ve mastered 90% of the technology, but the remaining 10% is where the most advanced innovations lie,†he said. Xugong has accelerated globalization, opening factories in Brazil, Poland, and Other countries, and expanding its European R&D center.
Despite overall industry stagnation, leading companies continue to grow. Anhui Heli, for example, expects a 20% growth rate in the third quarter, driven by demand in the logistics and road construction sectors. Road machinery and truck-mounted cranes are also benefiting from rural infrastructure projects and urbanization trends.
With mechanization on the rise, engineering machinery companies must focus on segment-specific needs. Analysts suggest that the industry should adapt to changing demands and seize emerging opportunities.
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