On April 11, 2023, the 21st High Level Forum on the Development of Construction Machinery, hosted by the China Construction Machinery Industry Association (referred to as the "Association"), was grandly held in Jiaxing, Zhejiang.
The theme of this forum is "new opportunities, new advantages, and new achievements", aiming to deeply explore the development trends and innovative paths of the construction machinery industry in the new era, and promote high-quality development of the industry. More than 400 representatives from associations and branches, member units, upstream and downstream enterprises in the industry chain, experts and scholars, and mainstream media in the industry participated in this forum.
This forum has set up two high-level dialogues, with 14 senior executives from backbone enterprises in the construction machinery industry focusing on the theme of the forum. Combining with the actual situation and development strategy of the enterprises, they actively explore the ways and methods for the development of new quality productivity in construction machinery enterprises, and share their experiences and achievements in transformation, upgrading, and innovative development.
The second high-level dialogue of the forum was chaired by Gong Jianfei, Vice President of the Association and Secretary of the Party Committee and Chairman of Beijing Construction Mechanization Research Institute Co., Ltd. Wu Jianhua, Deputy General Manager of Taiyuan Heavy Machinery Group Co., Ltd., Li Yuansong, Deputy Chief Engineer of Hangcha Group Co., Ltd., Liu Yanfang, Party Committee Member and Deputy General Manager of Tianjin Engineering Machinery Research Institute Co., Ltd., Fu Yaosheng, Chairman of Lixingxing Machinery Group, Wu Qingfeng, Deputy Director of the Science and Technology Committee, former Party Committee Secretary and General Manager of Inner Mongolia North Heavy Truck Co., Ltd., Li Yong, Deputy General Manager of Hitachi Construction Machinery (China) Co., Ltd., and Huang Yi, Assistant General Manager of the Supply Chain Management Department of China Communications Construction Group Co., Ltd., as guests participated in the dialogue.
The following is a transcript of the conversation:
Wu Jianhua: Taizhong Group was founded in 1950 and was the first heavy-duty machinery manufacturing enterprise designed and built by the Party Central Committee with an investment of 750 million kilograms of Xiaomi (equivalent to RMB 60.75 million). At present, an industrial development pattern of "one headquarters, multiple parks" has been formed, and a collaborative innovation system of "one key (national key laboratory), one center, and multiple bases" has been created; We have established a product research and development layout of "3+5+3" (traditional products+new products+batch products). At present, Taizhong Group is transforming and developing in the direction of strengthening traditional products, optimizing new products, and refining batch products.
Li Yuansong: Hangcha Group is a high-end equipment manufacturing enterprise in Hangzhou, and also a leading enterprise in the domestic industrial vehicle industry, with 50 years of industrial vehicle technology accumulation. In recent years, Hangcha has always adhered to the innovation driven strategy, continuously increased research and development investment, and continuously improved its comprehensive competitiveness. In the process of development, actively cultivating and strengthening new quality productivity, vigorously promoting the new energy strategy, Hangcha's new energy products cover a full range of 0.75 to 48 tons, making it one of the most comprehensive and competitive enterprises in the industry. At the same time, the company has opened up a new track in the field of smart logistics, and its forklift type AGV has a significant leading share in the domestic market. In addition, we have also created a modern industrial vehicle industry system with significant influence. In 2023, the net profit attributable to the parent company was 1.6-18 billion yuan, a year-on-year increase of 61% to 82%, achieving relatively good operating performance. Taking advantage of this opportunity, I am also very grateful to all the leaders and friends present here for their long-term care, support, and assistance to Hangcha. Thank you all.
Wu Qingfeng: Northern Group is a professional manufacturer of a series of mining vehicles. Mining vehicles are a sub field and an important equipment for open-pit mining. The company has been established for 35 years and has entered the top 50 world construction machinery companies for 11 consecutive years with a single product. Under the background of military civilian transition during the reform and opening up, the project was introduced by China Ordnance Group. After 35 years of efforts, its sales accounted for more than 80% of the domestic market share. All domestic energy enterprises have become important strategic customers. On a global scale, there is still some gap compared to Carter and Komatsu. Last year, the sales of mining trucks reached the second highest point in history, with the highest point in 2012, with a global sales volume of 6500 mining trucks. The development of intelligent and green mining has brought historic development opportunities for mining loading. As a professional manufacturer of mining vehicles, Northern Group is a wholly-owned enterprise of China Ordnance Industry Corporation. Welcome all new and old friends to visit and guide Northern Stock.
Liu Yanfang: Established in 1961, Tiangong Institute is the earliest technology centralized unit in the Chinese construction machinery industry. Since its inception, it has been developing together with Chinese construction machinery, witnessing nearly 60 years of industry growth. At present, Tiangong Institute's main business includes two sections: construction machinery and high-end equipment. The construction machinery section includes design consulting, standards, testing, journals, and research and development of testing equipment; The high-end equipment sector mainly provides digital, intelligent, and information-based product solutions, technical support for production and manufacturing processes, as well as AGV intelligent logistics and other products.
Over the course of more than 60 years of development, Tiangong Institute has undertaken the relevant work of the Secretariat of the National Earthmoving Machinery Standards Committee, the National Testing Center, as well as the Excavation Machinery Branch, Earthmoving Transport Machinery Branch, Engineering Machinery Supporting Parts Branch, and the Academic Work Committee of the Construction Machinery Association. It has close contacts with most enterprises in the industry and hopes to work together with industry enterprises to promote industry development and continue to make our due contributions in the future.
Fu Yaosheng: Lixingxing Machinery Group is Caterpillar's agent in North China, Northeast China, East China, and Taiwan Province. Next year marks the 30th anniversary of the establishment of Lixingxing Machinery, but we are still the youngest agent of Caterpillar. In the more than 20 years of development, we have also extended our business to the logistics and financing leasing sectors due to the diversification of our customers. In 2017, we entered the new energy sector, which includes photovoltaic power generation, energy storage integration, and energy management and control.
Li Yong: Hitachi Construction Machinery Group is a global engineering machinery research and development, manufacturing, sales and operation company, with a full chain of business, including product design, production and manufacturing, sales and services. Hitachi Construction Machinery China is the largest overseas company in the group's global layout. In 1995, it began operating in its manufacturing base in China and is one of the earliest foreign-funded enterprises to enter the Chinese market. I also joined Hitachi Construction Machinery (China) in 1995.
Huang Yi: China Communications Group is a leading global comprehensive service provider for large-scale infrastructure, mainly engaged in investment, construction and operation of transportation infrastructure, equipment manufacturing, urban comprehensive development, and other businesses. So far, it is the world's largest port design and construction company, the world's largest container crane manufacturing company, the largest offshore oil drilling platform design company, the largest international engineering contractor in Asia, and the largest highway investor in China. I would like to emphasize that we are both a user unit and a peer of many enterprises present here, as our affiliated enterprises include Zhenhua Heavy Industry, CCCC Xizhu, CCCC Tianhe, China Highway Vehicles Corporation, and a series of other equipment manufacturing enterprises. In recent years, the annual procurement volume of engineering equipment by China Communications Group has been around 10 billion yuan. We currently have 65430 engineering equipment with a net value of around 42.7 billion yuan. We also have rich experience in the use and management of engineering equipment. We hope to take this opportunity to exchange ideas with everyone.
Gong Jianfei: The current industrial structure is undergoing adjustment. As a traditional heavy machinery manufacturer, how will Taichung respond and achieve transformation and upgrading?
Wu Jianhua: Taizhong is a typical traditional heavy machinery manufacturer. Since its establishment in 1950, it has been engaged in traditional single piece small batch product manufacturing and is also one of the eight major heavy machinery factories in New China. Starting from 2020, Taizhong has been continuously reforming and repositioning.
Firstly, research and development continue to innovate, extending from the original large-scale construction cranes to a wider range of construction machinery products.
Secondly, as the only "dual chain master" enterprise in Shanxi Province, Taizhong actively undertakes the mission of revitalizing the manufacturing industry in Shanxi Province. Based on traditional advantageous products, through sufficient market research, it enters the field of batch products such as construction machinery.
At present, China's construction machinery industry is in a period of oscillation, and both technology and market are undergoing drastic changes. However, from the overall development of the industry and future market trends, with the support of relevant national policies, the industry is still improving overall and will maintain stable growth.
Overall, Taizhong is full of confidence in future development and will continuously optimize and upgrade traditional products, continuously transform towards a full range and multiple varieties, and strengthen and refine batch products.
Gong Jianfei: The forklift industry has already taken the lead in the new energy transformation of industrial machinery. May I ask Mr. Li, how did Hangcha adjust and transform in this trend?
Li Yuansong: In the direction of new energy, Hangcha has made a lot of reserves, and greening is also an important product development direction for Hangcha. The company has been laying out the research and development of lithium-ion forklifts for over a decade, especially in core technologies such as lithium-ion batteries, electronic control, and motors. It has also achieved some positive results and has successively launched a series of industry-leading new energy products. Next, we will continue to increase research and development investment in the field of lithium-ion battery forklifts, continuously innovate around high-end and cutting-edge technologies of new energy forklifts, continuously improve product energy efficiency, enhance product performance, and increase customer stickiness. At the same time, we are also expanding into another sector of new energy battery forklifts - hydrogen fuel cell forklifts. We have encountered some pain points, such as incomplete regulations and standards, high costs. For this sector, we will continue to do a demonstration operation project, collect more valuable data during the operation process, continuously iterate products, and prepare for future market expansion.
Gong Jianfei: What are the new ideas and achievements of Northern Group in intelligent mining equipment?
Wu Qingfeng: Mining cars are a niche product in high-end equipment manufacturing. Carter and Komatsu hold nearly 80% of the global market share. As a joint venture, Northern Group also has genetic and technological sources for foreign products.
How to face the development of future mining scenarios? After 35 years of experience and understanding in the industry, I believe that there are two directions for the future: the construction of smart mines. Open pit mining is a continuous industrial operation, and the working conditions are relatively harsh. Hot environments can reach temperatures as low as 60 or 70 degrees Celsius, while cold areas can reach temperatures as low as minus 60 or 70 degrees Celsius. Moreover, they are far away from cities and require continuous operation, which places higher demands on equipment reliability and durability. The carbon emissions are very huge, and the high fuel consumption is also a characteristic of mining vehicles. Each mining vehicle is equipped with a large displacement engine. A company with 200 mining trucks consumes up to 1.2 billion RMB in fuel per year, and a 100 ton mining truck emits up to 1200 tons of carbon emissions during continuous operation for one year. The future development of mining vehicles will definitely be green and intelligent. We now have 200 mining vehicles put into unmanned operation, which are fully integrated with the mining scene. Greenization and intelligence have created new opportunities for us.
In terms of greening, Northern Group has taken the lead in achieving mass operation of pure electric mining vehicles, with nearly 200 pure electric mining vehicles operating in large open-pit mines so far. Energy saving has reached over 90%, achieving very good results. This is closely related to the strong supply chain capability of China's three electric systems.
The future business model will definitely be the operation of customized services by maintenance companies for open-pit mines, with a stronger sense of technology. Whoever can achieve commercial implementation in green and smart aspects, ensure long durability and high reliability, and ensure 20 hours of vehicle operation every day, will definitely win new opportunities on the new track. This is a consensus in global mining.
Gong Jianfei: As one of the earliest established engineering machinery research institutes in China, in the rapid development stage of the industry, especially with the significant improvement of technology research and development capabilities of leading enterprises, how does Tiangong Institute transform and develop in response to the new industry situation? How can there be new innovations in industry, academia, research and application?
Liu Yanfang: After nearly 60 years of development, the technology research and development capabilities of China's construction machinery industry, especially leading enterprises, have been greatly improved. As the earliest industry research institute, Tiangong Academy is also a promoter and participant in the accumulation and improvement of industry technology. While we feel proud, we also feel pressure.
Since its establishment, Tiangong Institute has always been committed to promoting technological progress in the industry. We have always maintained close cooperation with industry enterprises in the research and development of common key technologies, standard formulation, testing and testing, and technical exchange, providing technology and product services. I believe that for the sustained development of an industry, especially in achieving the goal of high-quality development, the demand for these aspects will not only increase but also demand higher standards and a wider range, such as the adaptability research of new technologies such as artificial intelligence in the construction machinery industry; Standard specifications, testing equipment, testing methods, etc. for new energy and intelligent products. Therefore, as a scientific research institute, Tiangong Institute will play its role, prioritize technological innovation, continue to provide services to the industry, strengthen the mission and responsibility of state-owned and central enterprises, and play a role in the development of new quality productivity, based on industry common technology research and engineering transformation. It will enhance the overall technical service capabilities of research and development+standards+testing in the fields of hydraulic and electrification, enhance the practicality and applicability of "new intelligence", and accelerate the formation of advanced productivity. On the other hand, we will continue to work with relevant universities and enterprises to establish efficient industry university research cooperation and explore new operating models. For example, for enterprises of different scales, we will adopt different forms of industry university research cooperation, such as one-to-one or establishing technology sharing clusters, to accelerate the transformation of achievements, reduce enterprise research and development costs, and enhance overall technological progress in the industry.
Gong Jianfei: As an agent of construction machinery, what aspects do you think companies should adjust in order to cope with the continuous decline in sales of excavators in China?
Fu Yaosheng: In the face of the continuous decline in the excavator market in recent years, agents can make adjustments from the following six aspects.
Firstly, cost savings. As the sales of excavators decrease, the company is conducting internal personnel reductions, with a focus on matching existing costs with future development. In addition to cost reduction and efficiency improvement, many agents have also taken this opportunity to invest in digital reform, hoping to improve our overall operational efficiency and enhance our overall operational capabilities through digital operations.
Secondly, control inventory and accounts receivable well. Controlling cash flow is not only responsible for our company, but also for the brands we represent.
Thirdly, deeply cultivate the stock market. At present, the construction machinery market has entered the stock market, and everyone is continuously exploring how to deepen the existing stock. Taking Lixingxing as an example, we have operated tens of thousands of devices in the market, so we are striving to convert these stocks into profits in after-sales service through visual and digital platforms. Because Lixingxing has been working on inventory for a relatively long time, currently the average cost coverage rate of the entire group has reached around 80%.
Fourth, expand other businesses. Nowadays, most agents focus on leasing operations. As agents, how can we leverage operational leasing to serve as a bridge between the brand and customers during our transformation process? How can we empower our customers through operational leasing and also empower the sustainable development of our agents themselves? These are all things that need to be explored and practiced slowly.
Fifth, strengthen cooperation among manufacturers. When many markets are declining, the relationship between agents and manufacturers will become increasingly distant. But for Li Xingxing, I believe this is precisely a good opportunity to bring the manufacturer relationship closer and strengthen cooperation. At present, the market is entering a downturn, and our communication with Caterpillar will be deeper. Through training and cooperation in management and maintenance, Carter's support will be of great help in improving ourselves.
Sixth, adjust your mindset. After experiencing multiple cycles in the market, I believe many agents have deeply thought about how to take the future path? I think many agents will still adhere to the path of agents because we have a consensus that agency business is sustainable. So we believe that as agents, we can continuously empower manufacturers, brands we represent, and customers. As an agent, we are not an extra cost for the brand. On the contrary, we can reduce its total cost in the circulation field for the brand.
Gong Jianfei: How does Hitachi Construction Machinery determine the signal of the turning point in China's construction machinery industry? Compared with the international construction machinery market, does Hitachi Construction Machinery have sufficient confidence in the development of the Chinese market?
Li Yong: From the sales data, excavators have always been a barometer of the construction machinery industry. When sales performance is poor and continues to decline, the industry may face downward pressure. The domestic sales of excavators reached a peak of 290000 units in 2020, the previous upward cycle, and began to decline in 2021. The annual sales of 270000 units decreased to 150000 units in 2022, and then continued to decline to 89000 units in 2023. We predict that it is close to the bottom, but the real estate market is still struggling, and it is expected to continue to adjust at the bottom in 2024, which may be slightly lower than in 2023.
From the cyclical growth pattern of excavators, it can be seen that from 2001 to 2011, driven by the high-speed growth of the Chinese economy and infrastructure, the excavator industry continued a 10 year upward cycle, reaching a peak of 173000 units in 2011, and underwent a 5-year downward cycle adjustment from 2011 to 2016. From 2017, influenced by the global economic recovery and the transition to the third tier, the excavator industry ushered in a new upward cycle of about 4 years, which ended in 2020. The recent downward cycle has only been three years from 2021 to 2024. Although the volume has already hit a bottom, it is not much different from the bottom of the previous downward cycle. Although it has reached the turning point of the downward cycle in space, it has not yet reached the downward cycle in time. We believe that 2024 will still be oscillating at the turning point.
Hitachi Construction Machinery has great confidence in the Chinese market and will continue to rooted in China, deeply cultivating China, and providing products and value services to Chinese and even global customers.
Why do we have to do this?
① Although our domestic market sales are currently in a downward cycle, from a global perspective, the demand in the Chinese market is still the third largest in the world after North America and Western Europe.
② China's large-scale infrastructure construction, equipment updates, and other economic driven policies will drive a new upward cycle of equipment demand.
③ China has a complete and globally competitive supply chain system; China has the advantage of skilled industrial workers, and its product quality is competitive globally; From a global perspective, Chinese products have strong competitiveness.
④ The demand from Chinese customers has driven manufacturers to have a sense of speed in introducing new products, which is helpful for our product iteration.
Gong Jianfei: China Communications Construction Corporation is not only a construction enterprise but also a user of engineering machinery and equipment, and also produces engineering equipment itself. There is a structural shortage in the labor market in China's construction sector now, including significant changes in our age and gender compared to five years ago. At the same time, in the context of intelligent construction, what are the new demands and requirements for industry manufacturing enterprises, from the perspective of construction units and our industry users?
Huang Yi: Currently, the labor market corresponding to our infrastructure construction industry is particularly prominent in the aging of personnel. Many of our frontline workers on projects have an average age of over 40, and even higher. Therefore, in recent years, based on the needs of safety management and in response to the changing trend of labor resources, China Communications Group has vigorously advocated for less manpower and mechanization. Through the application of a large number of engineering equipment, the first is to reduce personnel, the second is to ensure safety, and the third is to improve production efficiency. This is also a situation faced by our peer companies, which is actually a common problem. It can be said that this is also to some extent one of the factors that promote our extensive promotion of mechanized reduction of personnel and the application of intelligent devices. From another perspective, we have discovered some issues during our exploration of using automated and unmanned equipment. It is a great opportunity to discuss these issues with everyone.
We would like to propose a suggestion that when designing and manufacturing intelligent equipment, including unmanned and new energy equipment, manufacturers should pay more attention to the actual needs of engineering use, our working conditions, the current management mode and level of domestic construction enterprises, and corresponding characteristics. They cannot simply follow and imitate the development path of foreign countries. It is recommended to combine our national conditions to a certain extent and consider the applicability of the equipment more targetedly.
Give an example to illustrate that we cannot unilaterally emphasize that the cost of using new energy equipment is lower than that of traditional equipment. For example, the electric loaders used by logistics companies have long working hours and can operate continuously or almost continuously, achieving uninterrupted operation without stopping the machine. In industries with high usage intensity, the cost friendliness of electric loaders is much higher than that of intermittent construction companies. By communicating with some friends in the logistics industry, they can recover the cost of an electric loader within three years, while construction companies find it difficult to recover the cost within three years. At the same time, we also face another problem. With the current level of technology, electric loaders may need to replace batteries in about five years, and the cost of replacing batteries is currently high, facing the problem of increased secondary costs. So does electric equipment have a real cost advantage for us construction companies? It is necessary to have a more objective and comprehensive view.
At the same time, the development path of electrification and new energy of construction machinery should be different from passenger vehicles and other specialized vehicles. Because construction machinery not only has its own characteristics of operation, such as different load characteristics, but also operates in a relatively special environment. Taking the Sichuan Tibet Highway project as an example, I conducted a special research on the practical application of electric engineering equipment in the Sichuan Tibet section of China Communications Corporation in August last year. I found that several types of electric equipment we use, including loaders, excavators, dump trucks, concrete mixing and transportation vehicles, have varying degrees of working conditions and environmental adaptability problems. Because currently, the new energy equipment of various domestic equipment manufacturing enterprises is basically electrified based on the original traditional equipment, rather than newly designed according to the characteristics of electric equipment. Taking concrete mixing and transportation vehicles as an example, the factory installs battery packs at the location of the original fuel tank. There is widespread mud, water, and mud on the construction site roads. The original battery pack sealing packaging of the battery manufacturing enterprise cannot meet the requirements of the construction site. We need to re seal it on site for secondary processing, and there are often problems that cause work delays. Simply put, it is recommended that manufacturers, in the development process of new energy engineering equipment, take into account the characteristics of the new energy equipment itself, actual usage characteristics, etc., and adopt relatively new ideas in the overall design and architecture design of the product. They cannot modify or modify the overall design of existing products based on the continuation of the old ones. Perhaps adopting a path of revision and modification at this stage may still be possible to maintain for some time, but it cannot be sustainable for a long time.
Gong Jianfei: How can enterprises build their core competitiveness in response to the development requirements of new quality productivity?
Wu Jianhua: Taizhong emphasizes the development of new quality productivity and proposes to strengthen the concepts of innovation and quality improvement, that is, new technologies bring new products, new formats create new markets, and new services bring new value.
Firstly, we need to strengthen product innovation and focus on areas such as new energy power and green design models, building differentiated products and development based on our past strength accumulation.
Secondly, in terms of product quality, Taizhong has always been a single piece and small batch development model, creating a brand with quality. In the future, Taizhong still hopes to win through quality.
The continuous and breakthrough in innovation and quality have ensured the development of Taiyuan in new business formats and services, thereby meeting the requirements of developing new quality productivity.
Li Yuansong: New quality productivity has different understandings and implementation methods for each enterprise. In my opinion, the following three aspects of work need to be done well:
The first is technological innovation. Technological innovation is the key to promoting the development of new productive forces and also the guarantee for forming core competitiveness. Solving market pain points through technological innovation, improving product performance and quality, forming differentiated competitive advantages with competitors, and enhancing core competitiveness is an important characteristic of cultivating new quality productivity.
The second is intelligent manufacturing. Using intelligent manufacturing to make product lines more intelligent and flexible, especially for multi variety and variable batch products similar to the forklift industry, how to deliver products to users quickly and effectively through intelligent manufacturing is also one of the key factors in improving enterprise competitiveness.
The third is green development. The production and operation activities of enterprises must be low-carbon, and attention should be paid to energy utilization and environmental protection in the production and operation process, creating an environmentally friendly enterprise and achieving sustainable development.
Wu Qingfeng: North Group Mining Automobile insists on:
The first is high-end, and we will never compete for the market by lowering prices. Our development philosophy is to have the lowest operating cost throughout the entire lifecycle. New quality productivity, we need to implement it at the point of increasing core competitiveness, supported by technology, quality, and service. To ensure product reliability through high-end design.
Secondly, greenification aims to leverage China's strong industrial advantages in the field of new energy, and seize new opportunities in areas such as hydrogen energy, batteries, hybrid systems, and range extenders.
The third customization, providing customized products to ensure maximum customer value and efficient and low consumption operation, requires us to provide new solutions in product development and customization.
Another thing is internationalization, with a large number of mining cars in the foreign market. China must pay attention to mineral resources, which are industrial grains, in order to become a major manufacturing country. Nowadays, the country has introduced many policies to develop the mining industry. As an enterprise in the mining equipment manufacturing industry, we should gradually increase our competitiveness in internationalization in accordance with international standards and game rules. Last year, the proportion of international market in North China's sales revenue increased significantly, reaching a new high in the first quarter of this year, indicating that the international market has greater potential and development prospects. Our international perspective and localized management measures are what we need to do to increase new quality productivity.
The effect of Li Yong's new productivity in innovation driven development is not only at the technical level, but also in terms of operational models. Recently, the government released the Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Exchange, which is of great significance for improving resource utilization and promoting the high-end, green, and intelligent development of enterprises and products. In the process of development, we also need to continuously explore the further implementation of new quality productivity.
Gong Jianfei: Please predict the development trend of the industry market in 2024 and 2025.
Li Yong: From a data perspective, it is expected that there will be around 5% oscillation in the industry in 2024; In 2025, it will gradually recover.
Liu Yanfang: Through a series of policies recently introduced by the country and an analysis of the industry situation by President Su Zimeng, we believe that through everyone's concerted efforts, the future industry market and industry chain will accumulate energy while developing safely and steadily, and there will be a trend of stable growth.
Li Yuansong: The domestic market is gradually improving, while the foreign market is generally stable.
Wu Jianhua: It is expected that there will be a slight increase in the third quarter of 2024, and a slight decline to market bottom in the fourth quarter. Stable growth will be achieved in 2025.
Wu Qingfeng: Based on global statistical data, judging from the industry, open-pit mining equipment is a stable growth trend both domestically and internationally. There will be a stable growth trend for at least the next 20 years.
Fu Yaosheng: I think there will be a slight decline in 2024 and a slight increase in 2025.
Huang Yi: With the implementation of various policies this year, the decline in the construction machinery industry should slow down and gradually stabilize. The country will not sit idly by and see a unilateral decline, and a long-term decline should not occur. On the one hand, market demand will not undergo a V-shaped reversal in the short term, which may not be as simple; On the other hand, there will definitely be no market confidence loss as some people claim. I believe that for businesses, patience itself may be a form of resilience and a manifestation of quality.
