Machinery / Industrial Parts & Tools

In the field of foreign trade, excavator exports are a barometer for observing the performance of the construction machinery industry and even the manufacturing industry. Since the beginning of this year, China's excavator exports have continued to rise, becoming a shining light in the difficult recovery process of the world economy.

According to customs data, from January to March this year, major manufacturing enterprises exported 28643 excavators of various types, a year-on-year increase of 13.3%. Some leading enterprises in the industry doubled their exports of products. Customs data shows that orders are still increasing.

Why are domestic excavators so popular overseas? The reporter conducted an interview.

Main construction machinery, with China's production ranking first in the world

According to the Ministry of Industry and Information Technology, China has formed 22 major categories of engineering machinery products, making it one of the countries with the most complete product categories and varieties. Among them, the production of major products such as excavators, cranes, and loaders ranks first in the world. Behind the rapid growth of domestic excavator exports is the high-quality development of manufacturing enterprises.

High quality, reflected in the product itself——

Customs data shows that in the first quarter of this year, the export sales of Zoomlion's main excavator models increased by over 200% year-on-year. This achievement is closely related to the company's strong investment in product research and development and production processes.

In recent years, we have built the first full process intelligent manufacturing excavator production base in the industry in Changsha, achieving stronger compatibility and flexible production. Compared with traditional production lines, the average production capacity of excavators in the new base has increased by nearly 70%, and the production cycle has been shortened by 65%. With its performance in operating force, construction efficiency, fuel saving, and dealing with complex working conditions, Zoomlion's Zhongda excavator products have been highly recognized by overseas customers 。” Wu Yuanfeng told our reporter.

Wu Yuanfeng said that in expanding overseas markets, Zoomlion Heavy Industries will immediately apply new technologies to export products, targeting high-end markets in Europe and America, improving the intelligence and informatization level of products, and actively conducting research on the "adaptability to working conditions" of emerging country markets.

High quality, also reflected in supporting services——

According to customs data, the overall export of excavators by Liugong increased by 16% year-on-year in the first quarter of this year, with a year-on-year growth rate of over 80% for large excavator products weighing over 30 tons. When it comes to the promising trend of overseas sales, Lin Shencai, the International Business Director of Liugong Excavator, cannot conceal his excitement.

He told our reporter that in recent years, the European, American and Southeast Asian regions have continuously increased infrastructure investment and mineral development efforts, bringing market opportunities to Chinese excavators. "Our excavators have an average time between failures of more than 1700 hours, as well as earth rock series products such as grader, bulldozers, loaders, and after-sales service networks all over the world to provide customers with all-round support." Lin Shencai said that Liugong's investment in the service end has become an important magic weapon to gain the favor of overseas customers.

At present, Liugong Excavator has established 7 sales regions in 102 countries worldwide, each with its own sales channels and after-sales service system, providing "7 × 24-hour service. Lin Shencai gave an example that customers can provide feedback to Liu Gong as soon as they encounter various problems during construction. With sufficient spare parts reserves from dealers and branches in various regions around the world, Liugong can provide customers with maintenance and repair services in the shortest possible time.

Micro excavator exports become a new highlight

Zhou Minliang, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, stated that in the context of significant downward pressure on the global economy, economies in North America, Europe, Southeast Asia, and the Middle East have stabilized economic growth by increasing investment in infrastructure construction, mining, and other fields. This is an important reason for the growth in overseas demand for construction machinery products such as excavators. At this time, Chinese enterprises, relying on their accumulated technical strength, product reputation, and service system over the years, actively seized overseas market orders and achieved growth in the export of domestic construction machinery products such as excavators.

Since the beginning of this year, a major highlight of the "going global" of domestic excavators has been the emergence of small and medium-sized enterprises, which have gained recognition in overseas markets.

Jiang Chaoxiang, a young man from Jining, Shandong, worked in excavator trade for a long time after graduating from university. Over time, he found that the excavator industry chain around Jining was very complete and had formed a scale advantage. Why not make your own excavator specifically for overseas markets? "In 2021, Jiang Chaoxiang took a crucial step by founding the production and manufacturing workshop of Shandong Haituo Machinery Group Co., Ltd.

On the one hand, in the European and American regions, many families often need small and flexible micro excavators that are easy to operate when taking care of gardens and farms. On the other hand, compared to medium and large excavators that require professional personnel to operate, micro excavators do not require much training and have lower door sills. "Jiang Chaoxiang told this newspaper reporter that after efforts, the export sales of micro excavators produced by Haituo Machinery with a weight of less than 3.5 tons are gradually opening up. In the first quarter of this year, the export volume increased by over 70% year-on-year. Especially in March, the production and sales of over 700 units increased by nearly double compared to the same period last year, which is a bit unexpected

What are the reasons for small businesses breaking into the big world? Jiang Chaoxiang believes that the high cost-effectiveness of domestic excavators and the opening of cross-border e-commerce sales channels are two main reasons. In the US market, Caterpillar also produces micro excavators. Although its craftsmanship is indeed better than ours, the product's price is three times higher than ours. We use live streaming e-commerce and other services provided by Alibaba International Station to achieve 'borrowing ships to go to sea', and the 'Hightop' brand micro excavators are gaining more and more recognition from customers, "said Jiang Chaoxiang.

Wang Xiaodong, a senior industry operation expert at Alibaba International Station, said that excavators have become one of the typical products representing China's manufacturing strength. Compared to large enterprises, the excavator products of small and medium-sized enterprises are mainly micro excavators and small excavators, which have the characteristics of rich products, wide application fields, and strong price competitiveness. Cross border e-commerce platforms can provide strong support for expanding exports of these products. Wang Xiaodong told our reporter that Alibaba International Station promotes different types of excavator products for overseas buyers in different countries to meet their diverse needs.

Focus on global market layout

Excavators are popular overseas and have a significant impact on the economy.

According to Tianyancha data, as of mid April, there were over 38000 registered enterprises nationwide with a business scope including "excavators". From the perspective of regional distribution, there are a large number of excavator related enterprises in Shandong, Anhui, Zhejiang, Hebei, and Jiangsu, accounting for 15.68%, 10.06%, 9.42%, 7.93%, and 6.12% respectively in China. From the distribution of establishment time, 51.6% of enterprises have been established between 1 and 5 years, indicating the rapid development speed of the industry.

Faced with opportunities in overseas markets, enterprises have made great efforts.

Wang Chuanming, Chairman of Guoji Heavy Industry Group International Equipment Co., Ltd., told our reporter that the company's excavator sales are mainly exported to markets across Argentina, Ecuador, the Philippines, Indonesia, and the Middle East. The main export product is a large tonnage excavator with a capacity of 20 tons or more, which can be used in fields such as mining, road construction, farmland and water conservancy. Customs data shows that in the first quarter of this year, the company's excavator export business achieved a "good start".

As a representative product of construction machinery, the quality and reliability of excavators have always been the top priority. In recent years, the maturity of the domestic high-end component supply system has ensured the quality of our excavators. Nowadays, every new excavator product needs to undergo more than 3000 hours of 'practical testing' before it can be launched into the market. Wang Chuanming said that the company also actively enhances localized services based on the usage habits of customers in different countries, Newly added resident engineers and gradually trained a group of local service personnel to ensure the after-sales service level of SINOMACH machines.

Xiao Zhihai, General Manager of Shanhe Intelligent International Market Development Center, said: In small excavations, we specialize in designing excavators for European and American customers based on their body shape and operating habits. In medium to large excavations, our products integrate versatility, efficiency, flexibility, and comfort, and enhance operational sensitivity through high-precision control systems. These excavators can demonstrate their expertise in municipal engineering, mining drilling, engineering infrastructure, and other fields around the world

Xiao Zhihai said that Shanhe Intelligent has always adhered to independent research and innovation. Excellent product performance combined with competitive prices has earned many loyal fans in foreign markets.

Wan Zhe, a researcher at the "the Belt and Road" College of Beijing Normal University, believes that Chinese excavators sell well overseas, which is essentially a reflection of the strength and level of China's manufacturing industry recognized by the world. Wan Zhe said that infrastructure construction is an important prerequisite for the economic and social development of a region. Over the past decade, the "the Belt and Road" initiative has aroused great resonance in countries along the Belt and Road and even in a wider range. The deepening and implementation of various collaborations have created an important external environment for domestic excavators to go to sea. In the future, relevant enterprises need to accumulate overseas experience, further enhance the digitization, electrification, automation, and intelligence level of excavator products, and gain stronger competitiveness, "she said.