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Crusher Market Analysis

The Problems of State-owned Enterprises

Faced with an increasingly brutal competition in the market, there are a lot of problems have not be solved in state-owned construction machinery, the future development of state-owned construction machinery will be a tremendous threat, mainly in the following areas:

1.State-owned construction machinery business does not have a fundamental change in management structure
Although the initial construction machinery has created a state-owned enterprise system in line with modern corporate governance structure, but all state-owned capital structure still exists, “the investor is not in place” system defects, the deep-seated structural conflict can not be fundamentally resolved, the operating mechanism there is no effective transformation, the enthusiasm of managers and workers have not been fully mobilized and play. Labor, personnel, distribution system behind, can not meet the needs of market competition, external environmental factors interfere with the company’s operating and mechanisms.

2 State-owned construction machinery does not have significant overall competitiveness.
long past in technology, management and marketing and other aspects of losing competitive advantage of the current state-owned construction machinery overall technical strength is only about foreign companies on the level of the mid-1980s, many of the key components The core technologies are still controlled by others; international quality management system certification is still in the early stages of internationalization and globalization of professional management personnel shortage; sales revenue is largely dependent on the domestic market, exports only a small amount of low-end market in developing countries, European and American markets and high value-added large-scale worldwide output remain elusive. As international companies enter the Chinese market continues to accelerate the pace of large-scale international cooperation, business expansion and rapid project start, the industry many companies have to take this opportunity to strengthen cooperation with international giants to quickly raise capital and technical strength, the implementation of international marketing management . In this situation, if you do not think state-owned construction machinery change, stick to the conventions of its other business advantages for domestic consumption will soon be exhausted. Internationally renowned engineering and machinery manufacturing enterprises, state-owned enterprises in construction machinery product variety, grade and scale of production, product development and manufacturing technology, market development, management and the level of financial strength, and many there are considerable gaps in the face increasingly open domestic market, its overall competitiveness Capacity needs to be strengthened, both compared with the foreign, or with private enterprises, many composite indicator of financial disadvantage.

3 State-owned construction machinery have heavy historical burden which seriously affected the normal business
Due to historical and institutional reasons, the construction machinery in the state-owned enterprises in the development process of the assets left by the heavy burden and personnel burden. Business development funds, historical baggage and the consumption of valuable resources, and associated with many man-made conflict, a serious drag on the development of enterprises, and even interfere with the normal production and operation.

4 Under the current system state-owned construction machinery inevitably has disadvantage in labor costs
Represented by Caterpillar with foreign capital, brand, technology, management and other advantages, after sweeping the excavator, is eating away rollers, loaders and other markets, with three one, Longyan, represented by private enterprise with flexible management mechanism, sensitive market reflects the capacity to rapidly capture the market, access to extraordinary development, especially with the domestic construction machinery market and the rapid development of China’s accession to WTO, the domestic market continues to open up further adjustment of import and export tariffs, foreign high-quality products in the market of construction machinery continue to lower the access threshold for domestic construction machinery market, competition will further heating up. With the rapid economic development, especially in per capita GDP exceeded 1,000 U.S. dollars, the user demand for construction machinery products gave birth to great changes, more and more inclined to high-tech, high-quality, high reliability, large-tonnage product, which is precisely the weakness of state-owned enterprises. Construction Machinery
State-owned enterprises in the coming years will face unprecedented pressure to survive and market challenges.
State-owned enterprises


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