Micro excavator is a mini excavator, also known as mini excavator. Excavators with a total weight of less than 6 tons are usually defined as micro excavators. The biggest feature of micro excavation is its slender body, strong passability, sensitive construction, and suitability for narrow working conditions.
With the continuous exploration of the excavator product segmentation market and the increasing demand for micro excavator products, domestic micro excavators have started to participate in the micro excavator market, which used to be dominated by foreign brands. The previously neglected micro excavators have become the focus of competition among major brands. Domestic excavator accessories
Mechanical substitution for manual labor accelerates the process
Since the arrival of the industrial age, whether humans or machines are the main force of labor has always been an inconclusive topic. With the gradual aging of the domestic population, "population profitability" is gradually weakening, and labor costs are increasing, which accelerates the process of mechanical acceleration replacing manual labor.
In recent years, with the continuous progress of China's economic and urbanization levels, labor costs have also gradually increased with the development of the economy. The process of "replacing labor with machinery" has accelerated significantly, and mechanized construction has become an inevitable choice.
China is currently in the stage of accelerating rural development, with strong support from the government for the development of small and medium-sized cities and characteristic small towns. In addition, planting and breeding industries are constantly growing, which means that there will be more and more small-scale earthwork projects such as township construction, road protection, and agricultural water conservancy.
Micro mining mall enters a period of rapid expansion
In addition, the construction methods of small-scale earthworks are becoming increasingly refined, and the construction machinery is gradually changing from "large-scale demolition and construction" to "meticulous carving". People's requirements for municipal protection, landscaping and other protection are becoming higher and higher, and manual labor cannot complete these operations. This provides a broad stage for micro excavation to demonstrate its abilities.
Nowadays, the labor cost in China is getting higher and higher, and young and middle-aged workers are increasingly unwilling to engage in physical labor for basic construction. In this situation, micro excavation is a very good choice to replace manual labor. A micro excavator operates for 8 hours per day, and can recover its costs in a year. Compared to manual labor, machinery is simpler to handle and operate, and micro excavators can be selected to replace manual labor.
In recent years, the government has strongly supported the development of small and medium-sized cities and characteristic small towns. Planting and breeding industries are constantly growing, and there are more and more small-scale earthwork projects such as township construction, road protection, municipal pipeline construction, and agricultural water conservancy. Therefore, the demand for these working conditions is increasing. At this point, the demand for micro excavators has significantly increased. As a good helper for replacing manual labor with machinery, micro digging is not only delicate and exquisite, but also sensitive in navigating narrow tunnels. It can be equipped with various tools and can replace human work, such as digging trenches, flat ground, planting trees, ground crushing, opening doors and digging holes, etc.
Domestic excavator parts editor finds that domestic micro excavator sales are steadily rising
Micro excavation, with its common advantages of delicacy, sensitivity, multifunctionality, and efficiency, is increasingly becoming an ideal equipment for earthwork engineering. Moreover, with the development and promotion of leading excavator enterprises such as Sany Heavy Machinery, it will inevitably have a positive impact on the widespread use of micro excavator products. But as a representative of ethnic micro mining, we will definitely work hard in terms of product performance and service, constantly improve product quality, and contribute our own strength to the rise of ethnic micro mining. Together, we firmly believe that ethnic micro mining will shine in the market of our country!
In 2017, 25 host manufacturing companies included in the branch's calculation sold 130559 units in the domestic mining machinery market (excluding Hong Kong, Macao, and Taiwan in the computing field), a year-on-year increase of 107.5%. From the perspective of product structure, the sales of large excavators, medium excavators, and small excavators are 19247, 32005, and 79307 units, respectively. The market share is 14.7%, 24.5%, and 60.7%, respectively. Among them, the sales of micro excavators and the market share are 24254 and 18.6%, respectively.
On August 15, 2018, the Excavation Machinery Branch of China Construction Machinery Industry Association released an analysis report on the sales volume of excavation machinery malls in China from January to July of this year. Data shows that from January to July, the 25 host manufacturing companies included in the association's calculation sold a total of about 131200 excavators, with a year-on-year increase of over 50%. The data shows that from January to July, the sales volume of domestic large excavators, medium excavators, and small excavators were about 18000, 32200, and 70200 units respectively, and the market share of shopping malls was 15%, 26.8%, and 58.2% respectively. Among them, micro excavators weighing less than 6 tons and small excavators weighing 6-13 tons account for about half of the domestic market share. Micro excavators have sold a total of 21788 units, with a market share of 18.1%. Analysis of the current sales situation of domestically produced excavator accessories shows that excavator sales will reach a new high this year, and micro excavator sales will also rise to a high level.
More important factors to promote the larger development of micro mining market
1. Decline in population profitability and increase in labor costs
According to data disclosure, the number of young people in China is continuing to decrease, with a net reduction of 30 million in the next five years. This means that the best labor force in our country will directly reduce 30 million people in the next five years. In the past few decades, "population profitability" has been an important driving force for China's rapid economic growth, contributing about 25% to the economic growth. With the decline in birth rate, China's population structure has undergone fundamental changes. During the 13th Five Year Plan period, the contribution of "population profit" to the potential growth rate decreased, and after 2020, "population profit" will gradually become "population debt". The profitability of China's population has been declining year by year. Correspondingly, due to the decrease in the quantity of labor, the price of labor in China has been continuously rising in recent years, and the cost of labor has also been increasing. In today's villages, due to a lack of labor, machinery has to replace manual labor in some infrastructure fields.
2. Multiple regions release trillion yuan infrastructure investment projects
This year's government work statement points out that the investment in railways will be 732 billion yuan, the investment in highways and water transportation will be around 1.8 trillion yuan, and the scale of investment in water conservancy under construction will reach 1 trillion yuan. This means that the scale of railway investment will increase more than expected. In the context of a significant decline in infrastructure investment in the first half of the year, the growth rate of infrastructure investment in the second half of the year is bound to increase. The increase in railway investment scale has also to some extent released signals of accelerated infrastructure investment.
In July of this year, Guangdong Province issued a notice from the Guangdong Provincial Reform Commission on the issuance of the 2018 investment plan for the supply side structural reform to fill the gaps in serious projects. In the transportation network engineering package consisting of four parts: rail transit engineering, highway engineering, port and waterway engineering, and general highway engineering, the total investment of the project reached 1365.287 billion yuan, of which a total of 1301.172 billion yuan were included in the key project plan of Guangdong Province. The Qinghai Provincial Government has issued the responsibility policy for key construction projects funded by fixed assets throughout the province in 2018. A total of 190 key projects were organized in 2018, mainly involving water conservancy, transportation, energy, information, township infrastructure, industrial optimization and upgrading, ecological construction, and people's livelihood improvement. The total investment for the projects was 853.5 billion yuan, and the annual plan was completed with an investment of 180 billion yuan. In May of this year, the Zhejiang Provincial Government announced its construction strategy for the Greater Bay Area. According to the strategic plan, Zhejiang will promote a total of 70 key transportation projects in the next 5 years, with a total budget of about 1 trillion yuan. The completion of the 5-year plan will contribute about 750 billion yuan, of which 44 critical projects will be promoted in 2018. In May of this year, the Chongqing Transportation Key Project Investment Promotion Conference was held, with 28 projects including highways, high-speed railways, etc. participating in investment promotion, with a total investment of approximately 310 billion yuan. Jiangsu Province recently issued the "2018 Investment Plan for Serious Projects to Address Shortcomings", requiring the completion of 200 serious projects with an annual investment of over 360 billion yuan, further strengthening upward competition, accelerating the completion of preliminary work for a number of serious projects such as railways and oil and gas pipelines, and starting construction as soon as possible.
3. The approval and restart of urban rail transit projects have led to a surge in the construction of rail transit in many places
After a one-year suspension, the National Development and Reform Commission resumed the approval process for urban rail transit projects in July. Recently, the Development and Reform Commission of Jilin Province announced that the National Development and Reform Commission held a director's office meeting to review and approve the construction plan for the third phase of urban rail transit in Changchun City, Jilin Province. The third phase of urban rail transit construction plan in Changchun City includes 8 lines including Line 5, Line 6, Line 7, Airport Line, Shuangyang Line, etc., with a total length of 135.4 kilometers; The total investment is 78.732 billion yuan, with a capital share of 40%, and other funds will be processed by domestic bank loans; The planning period is from 2018 to 2023. In addition, the construction plan for the third phase of Suzhou's urban rail transit, with a total investment of approximately 95 billion yuan, has been approved. There is also news that the Hangzhou Airport Rail Express is waiting for review, striving to obtain approval by the end of August and start construction before the end of the year. The review of the third phase plan of Xi'an Metro is also underway intensively. At the same time, cities such as Hangzhou, Chongqing, Nanchang, and Shijiazhuang are accelerating subway construction, and some recently approved projects have recently started construction.
4. Equipment upgrade and replacement
Generally speaking, the service life of construction machinery equipment is about 8 years, and the last peak of sales was in 2011. Since 2018, the field of construction machinery has entered the stage of equipment screening and updating. Affected by strict environmental policies, equipment owners will further update their equipment to meet the new emission standards. The new shopping mall space will further stimulate the demand for micro mining equipment.
5. Railway investment of 800 billion yuan can continue for another ten years
Under the dual influences of increased investment in railway locomotives and vehicles and accelerated infrastructure development, the amount of fixed asset investment in railways is expected to return to over 800 billion yuan in 2018. However, since the first half of 2018, the total passenger and freight volume of China Railway has significantly increased, and investment plans for locomotives and vehicles have been continuously added; In terms of construction, the recent executive meeting of the State Council and the meeting of the Central Political Bureau have reiterated the investment in infrastructure, and railway infrastructure projects are expected to accelerate. The expected completion of 800 billion yuan investment in railways in 2018 is very high.
The 13th Five Year Plan for Railways issued by the National Development and Reform Commission states that by 2020, the total operating distance of railways in China will reach 150000 kilometers, including 30000 kilometers of high-speed railways. The double track rate and electrification rate will reach about 60% and 70% respectively, forming a railway network with reasonable layout, wide coverage, clear hierarchy, safety and efficiency. China's railway investment of 800 billion yuan can continue for another ten years.
6. 20 million acres of farmland water conservancy construction added
The Ministry of Water Resources issued a notice on the "Key Operations of Village Water Conservancy in 2018", emphasizing the implementation of funds for the construction of central farmland water conservancy, increasing local investment, vigorously carrying out the construction of supporting field canal systems, "Five Small Water Conservancy" projects, village water system improvement, and river pond dredging projects. Revise and improve the county-level agricultural water conservancy construction plan, discuss and formulate construction and handling standards, and carry out standard and quality improvement of small-scale agricultural water conservancy equipment. Ensure the completion of the mission of building an additional 20 million acres of high-efficiency water-saving irrigation area. Further refine the overall plan for the 13th Five Year Plan at the provincial level, divide and execute the annual construction mission, solidly carry out the pre construction work of the project, raise construction funds from multiple sources, formulate a chronological schedule plan, carry out map operations and node control, and complete the construction mission of 20 million mu of high-efficiency water-saving irrigation area on schedule and with quality. In areas where conditions permit, overall design and investment will be gathered to construct a batch of serious and efficient water-saving irrigation projects.
7. New rural construction
As of the end of 2017, China's urbanization rate was 58.52%. Compared to developed countries, it can be found that their urbanization rate is around 80%. For example, as of the end of 2016, Germany was 75.5%, France was 79.8%, the United States was 81.8%, Canada was 82%, the United Kingdom was 82.8%, and Japan was 93.9%. The urbanization rate in our country is far behind that of developed countries, and our country's rural urbanization lags behind Western developed countries by 20 years! The distance of these 20 years requires us to continuously improve the urbanization rate. The National Development and Reform Commission issued a notice on the key mission of promoting the construction of new-type townships in 2018, which pointed out that the comprehensive implementation of urban agglomeration planning, the formulation and implementation of the Guangdong Hong Kong Macao Greater Bay Area development plan, the issuance and implementation of inter provincial urban agglomeration plans such as the Guanzhong Plain, Lanzhou Xining, and Hohhot Eyu, and the acceleration of the implementation of urban agglomeration plans such as the Yangtze River Delta, the middle reaches of the Yangtze River, Chengdu Chongqing, Huaxia, Harbin Changsha, and Beibu Gulf. Steadily carry out the construction of urban agglomerations, accelerate the cultivation and rebirth of small and medium-sized cities, and guide the healthy development of characteristic towns.
8. Implementing the strategy of village revitalization
The 19th National Congress of the Communist Party of China proposed the implementation of the strategy of village revitalization, which is a serious strategic deployment made by the Party center to comprehensively build a moderately prosperous society and a socialist modernized country. From the perspective of infrastructure construction, the most obvious sign of village revitalization is the improvement of the living environment and the improvement of the appearance of the village. Reducing the distance between urban and rural infrastructure and providing farmers with a convenient, tidy, and beautiful modern living environment is an important livelihood and popular project, as well as an important guarantee for attracting outstanding talents to return to the village. The construction and protection of village roads, drinking water safety, cultural and sports equipment, power and telecommunications, garbage removal, toilet renovation and other projects require a large amount of construction machinery, especially small and micro excavations, and the demand will increase.
In addition, the integration of Beijing Tianjin Hebei to create a "1-hour transportation circle", the construction of the Guangdong Hong Kong Macao Greater Bay Area, the Yangtze River Economic Belt strategy, and the construction of the "millennium plan" Xiong'an New Area have all become drivers for the rapid development of the micro excavator market. Domestic excavator parts will also become an important tool for improving people's living standards and building a beautiful China.
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Contact: Mr. Chen
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