On April 24, 2019, the 4th Meeting of Directors of the 5th China Construction Machinery Association, the Convention of Delegates and the 17th Summit on Development of Construction Machinery in China was opened in Changxing of Zhejiang, known as the Pearl on Taihu Lake.
Group photo of top executives
In the dialogue of the Summit, SDLG Chairman Wang Zhizhong made an excellent speech from two dimensions, namely, market opportunity and strategy of future development, interpreted the new thinking, changes and development in the New Normal of the industry, shared the important factors of maintaining everlasting business, and made fact-based predictions of the market.
SDLG Chairman Wang Zhizhong was speaking
Contents in the speech made by SDLG Chairman Wang Zhizhong
I. Focus on both efficiency and innovation and match the best
In its development, SDLG makes strategy by always taking the world vision; keeping abreast of the world-famous enterprises, SDLG upholds the core value of “efficiency priority and leading technology”.
SDLG has kept making leap-forward development in the past years. Chairman Wang Zhizhong believes it attributes to the strategic positioning: world vision, international standards, SDLG characteristics and high-quality development. Upholding efficiency and innovation, SDLG has made efficient development in R&D, operation, production, marketing, HR and organizing while adhering to technological and management innovations.
To secure high-quality development, SDLG has made 3+1 product line, thus realizing the development strategies. To be specific, focusing on loaders, excavators, road surface machinery and other product lines and core parts and components, etc., it realizes the SDLG product cluster development, modern technologies, efficient management and international development.
II. Consolidate product foundation and realize intelligent development
Intelligence is the major trend of current economic growth. However, Chairman Wang Zhizhong said we should realize it step by step according to our realities without following suit blindly. For instance, Germany Industry 4.0 and US Industrial Internet use large quantity of intelligent technologies because of the high labor cost. As a result, intelligent development in China should move on step by step, and lay the solid foundation in product R&D and innovation ability before fulfilling the research in intelligent development.
While consolidating the product quality, SDLG has used big data, in the past years, to implement lean R&D, precise marketing and value service while working hard to develop the new dynamics of corporate development, build the platform for data collection and analysis, realize collection of R&D data, market analysis, service support, parts and components, channel operation and visualized integrated control of logistics business.
The big-data treatment center is composed of SDLG headquarters and its 163 sub-centers across China, which monitor online the operation state of 150,000 units in the country on the real-time basis, and providing clients with construction solutions featuring whole value chain and whole process, thus realizing the philosophy of fusing IT with mechanization, pushing forward reforms in R&D, marketing and service. It is the major result of SDLG in accelerating the shift from old dynamics to new dynamics.
III. Chinese brands are transformed and upgraded to enhance anti-risk ability
Since 2016, construction machinery industry in China has stepped onto the path towards recovery, embracing the first round of high-speed growth with great potential. In the high-end market, though construction machinery manufacturers in China have made major breakthroughs in product upgrading and technical reforms, Chairman Wang Zhizhong still believes there is great gap with the markets in Europe and USA. In recent years, due to the great boom in in the industry, excavators of the Chinese brand take 50% market share in China, highlighting the great power of localization and changing the situation in which foreign brands were dominant.
Nowadays, manufacturing industry in China is undergoing pressure and serious challenges because of the US-China trade war. However, thanks to the policy bonus brought by reform and opening-up, the enterprises in China address calmly, thus getting better prepared and having more tactics against the risks brought by the trade wars. This also has facilitated the transformation and upgrading of the Chinese enterprises.
Compared with late 1980s and early 1990s when market share of the Chinese brands was nearly zero, many construction machinery manufacturers have made exceptional market performance. The suppliers and host machine manufacturers are improving their ability to prevent market risks. Globalization is an important part for China’s manufacturing industry to become a manufacturing power.
International development has become the development strategy of many construction machinery manufacturers. Steered by service in the overseas market, SDLG expands the market with quality, starts with SE Asian market and African market, and makes solid progress and gradual expansion.
Till today, the sales network of SDLG has been spread in Asia, Africa, Europe, South America, North America and Australia, establishing the overseas marketing network with more than 110 sales channels. Relying on these sales network, SDLG has grown from an enterprise which sold 2,000 loaders per year and ranked beyond the tenth place in the industry into a leading construction machinery manufacturer that sells more than 40,000 loaders, excavators and road surface machines per year.
Nowadays, the Belt & Road Initiative is moving forward actively to facilitate international development of private companies such as SDLG and accelerating the vision of global SDLG.