Secondary Construction Machinery Market Challenges and Opportunities

At present, the market for domestic construction machinery has exceeded 5 million units. The China Advisory Group predicts that by 2015, the annual sales of construction machinery will reach more than 1 million units. According to the life cycle of mechanical equipment, it is estimated that by 2020, the annual number of scrapped construction machinery will be as high as 1.2 million units. With the rapid growth of the buying and selling transactions of used construction machinery in China, the healthy and orderly development of the second mobile phone market has become the key to the development of the Chinese construction machinery industry.

However, the current domestic market for second-hand construction machinery is faced with chaotic rules, a single business model, the backwardness of the management mechanism of the second mobile phone operation company, gray transactions becoming the mainstream of the market, and the shortage of professional and technical talents, resulting in the lack of technical support for the transformation and upgrading of enterprises and the lack of awareness. Great challenge. The majority of users of second-hand equipment do not have professional identification capabilities. Subsequent phenomenon often occurs. After the customer buys the hand, they find that the mechanical performance is greatly reduced, and the after-sales service is not perfect. In the event of a failure, maintenance costs and parts purchases The costs are high.

At the same time, challenges and opportunities coexist, and there are also six major opportunities for the development of used equipment. The taxation policies that have helped the development of the used equipment industry have been introduced; the legislative work of a scientific and systematic asset assessment law has been launched; used equipment Assessment of the establishment of a technical standard system, the promulgation and implementation of standards for the practice of second-hand equipment appraisers and appraisers, and the provision of favorable technical support for the standardized development of the used equipment industry; the capital market has begun a large-scale intervention; the company’s understanding of the second mobile phone business The degree continues to increase; the research on the business model of the post market continues to deepen.

Multi-pronged approach to standardization Based on the current confusion in the trading of products in the used equipment market, and the fact that imported equipment is also mixed, the relevant state departments have issued a series of regulations in recent years to regulate them. For example, the "General Rules for Circulation of Used Equipment" was formally implemented on March 1, 2010. The "General Rules" set forth the requirements for the terms, definitions, classifications, quality, appraisal, assessment, evaluation process, and transactions of used equipment circulation.

Up to now, four domestic trade industry standards such as "Second-hand Excavator Circulation Requirements", "Second-hand Loader Circulation Requirements", "Secondary Concrete Pump Circulation Requirements" and "Second-hand Mobile Crane Circulation Requirements" have been formed. Review the manuscript and submit it to the relevant national department for review.

According to the 2013 Ministry of Commerce's No. 1 standard announcement, 51 domestic trade industry standards such as the “Regulations for the Construction and Management of Regional Large-scale Recycling Resources Recycling Bases” have passed the examination and approval by the Ministry of Commerce, including the technical requirements for second-hand forklifts and the technical requirements for second-hand asphalt mixing equipment. The rules for the preparation of technical specifications for used asphalt mixing equipment were formally implemented on July 1, 2013.

Such frequent introduction of industry standards and regulations is evident in the importance attached to the secondary market for construction machinery. However, based on the various problems exposed in the current secondary market, it is not enough to focus on the healthy and orderly development of the market. For a well-advanced market, there are only laws and regulations that do not work. There should also be relatively perfect quality appraisal agencies and professional practitioners, who should materialize the standards written on paper and regulate the development of the industry with actions. At the same time, as a third-party evaluation agency, its authority, impartiality, and credibility are also the focus of further standardization; for assessing the industry's market access standards, the accreditation qualification assessment is also the key to improvement.

For the future development of the used construction machinery market, how to regulate the import of used construction machinery abroad is also a problem to be solved. At present, second-hand products of well-known construction machinery manufacturers represented by countries such as Japan and the United States are flooding into the country, and brands such as Caterpillar, Komatsu, and Kubota are the darlings of second-hand construction machinery auctions. This has caused a series of problems in China's second-hand construction machinery market to flourish. However, with the gradual improvement of the second-hand market trading system and the continuous strengthening of the state's supervision of the secondary market, we will surely usher in a more healthy and orderly development of the secondary market for construction machinery.