China Forklift Industry Development Trend

Before discussing the development trend of China’s forklift industry, let’s take a look at the overall situation of the Chinese forklift industry in 2013. In 2013, it is estimated that the growth rate will increase by 12% to 320,000 units. The results are good. 2013 is a crucial year for the connection between the forklift industry and the year 2012. The sales fell 7% to 12% in 2013 compared to 2012, and it is a turning point from past performance.

First, the "EHS" environment, health and safety are the unchanged theme "EHS" to protect the environment, improve the health and safety of our workplaces, improve working conditions, and safeguard the legitimate interests of employees. Its implementation and implementation will greatly enhance the cohesion of the factory, improve the internal management of the factory, enhance the factory image, and create better economic and social benefits. The China Meteorological Administration Bureau of Forecasting and Networking has revised the standard for early warning signals and used PM2.5 as one of the important indicators for issuing early warning. With the implementation of mandatory standards for non-road vehicles in China, health, environmental protection, safety, and energy saving Forklifts must be the trend of future development.

Second, the forklift market after the booming forklift market has always been accompanied by the birth of the first forklift has existed, but only from the last few years we talked about the "forklift aftermarket." As of the end of 2013, the 1.68 million domestic forklift trucks included Japanese, European, American, and domestic forklifts. The forklift's spare parts and maintenance costs were calculated at 8,000 yuan per unit, with sales of 13.4 billion yuan. This 13.4 billion yuan is only final consumption. A value, such as the actual size of the trade, can't be estimated after the trade volume is calculated, and it is estimated that it will increase by more than 10% every year. Sales of Heli and Hangcha in 2012 were approximately 12 billion yuan, accounting for 50% of China's forklift sales. The cost of accessories and maintenance for the 1.68 million forklifts has exceeded 50% of China's forklift sales in 2012. It can be foreseen that there is much room for development in the forklift market. How many accessories and maintenance service providers are engaged in the forklift industry. Sales of parts such as Frances, Hengtong, and Hengli have exceeded 100 million yuan.

Of course, the forklift market is not just accessories and maintenance services, but also forklift rental, second-hand forklifts, forklift financing and other businesses. Forklift leasing is currently mainly concentrated in the Yangtze River Delta, Bohai Rim region, and a part of the Pearl River Delta region, the country's forklift rental is about 40,000, the forklift rental industry accounted for less than 3% of forklift sales, while the international forklift rental industry has Development has become an important mature industry. For example, 80% of companies or users in most European countries such as the United Kingdom, France, and Germany use forklifts for rental purposes. In Japan and South Korea, the forklift rental industry accounts for about 50% of forklift sales. The traditional forklift leasing model continues to innovate, emerging market demand for forklift leasing, coupled with the injection of external capital, the market for forklift rental is expected to continue to expand. Second-hand forklifts, forklift financing and other businesses will gradually form a professional market with the increase in the number of forklift trucks. At present, it is only imported second-hand electric forklifts. Shanghai Shanglu has almost one thousand sales in 2013. The income and profit sources of the domestic forklift industry are biased towards the upper reaches of the value chain, and the investment is mainly concentrated in the manufacture of forklifts and the wholesale of parts. However, with the rapid growth of the quantity of forklift trucks and the diversified consumer demand, the value of the forklift industry has gradually shifted to the downstream, providing the possibility for the rapid development of the forklift market.

In the forklift market, "Chinese-style TVH" will surely appear in the near future. This is the second trend.

Third, the number of Chinese forklift trucks is growing rapidly, while the price war of homogenous products will intensify.

First of all, in terms of the overall forklift market in China, as of the end of 2013, there was a net increase of approximately 200,000 units in 2013. It is conservatively estimated that the number of forklifts in China will be around 1.68 million, at least until the next few years until 2018. As China’s gross domestic product (GDP) is expected to continue growing at an average rate of around 8%, the market’s demand for forklifts will also increase, coupled with the fact that China’s future population will increase into an ageing and industrial automation industry. Demand for material handling tools will continue to grow. According to the Chinese forklift truck's bold prediction, it will be possible to achieve an average growth rate of 10% per year. By 2018, China's domestic forklift fleet will have an installed capacity of about 3 million units. In 2009, China replaced the United States as the world’s largest manufacturer and consumer of industrial vehicles. Coupled with the future growth rate, the Chinese forklift market will have a direct impact on a number of complete machine manufacturers, parts suppliers and even the entire forklift market around the world. . The price of new cars will continue to drop. Machine manufacturers cannot reduce their costs by about 8% per year. The increase in sales volume will not offset the impact of price reduction. On the other hand, from the point of view of products on the actual market, the rapid diffusion of technology will lead to Products are increasingly homogenized, forcing forklift manufacturers to actively seek new breakthroughs, create new models, open up new market segments, occupy new market heights, and gain new leading advantages as soon as possible.

Fourth, high-level communication has accelerated the market positioning of the Chinese forklift industry from domestic to international. The 16th World Industrial Vehicles Alliance Conference was held in Sanya, China. It not only attracted the high-level and professional of domestic and foreign famous brand machine and component manufacturing enterprises. Participating people, including executives from the European Material Handling Association Industrial Vehicles Division, the American Industrial Vehicles Association, and the Japan Industrial Vehicles Association, were also invited to attend and deliver keynote speeches at the conference. This high-level communication strengthened the forklift industry. The exchange will help China's complete machine and component manufacturing companies understand the needs of international development and allow the world to understand China in depth, so as to promote the development of the forklift industry. The development trend of China's forklift industry will face global competition. Even if we do not go out, foreign products will come in. We will use safety and environmental regulations as an important topic in foreign countries. Enforcement of EN ISO 3691, EN 16307 and other standards is mandatory. The proportion of electric forklifts will increase, and the emission control of diesel forklifts will be more stringent. How we develop products that meet the needs of the global market is a major challenge.

5. Overcapacity in the forklift industry at the stage of “overcapacity of low-quality products and scarcity of high-quality products” is a long time for the whole machine manufacturer to invest in this fast-growing market. It is continuously investing funds to build forklifts. In this process, the factory seizes more market share through price wars, continuously shortens the product development cycle, and does not even develop new products. The homogenous development and quantity expansion of the whole machine company cause the Chinese forklift truck market to far exceed supply. The price of homogenized products will continue to decline; on the other hand, profound changes have taken place in China's economic development stage, but the industry development model has not changed along with it. Some forklift companies have not taken the initiative and have produced numerous peers. The products that can be produced will be transformed into high-tech, high-value-added equipment, and will be developed in the direction of high-end product technology, personalized product demand, and international competition in the market to obtain the company's unique core competitiveness. Therefore, in the last five years, the phenomenon of "overcapacity of low-quality products and scarcity of high-quality products" still exists.

6. Domestic and foreign enterprises continue to inject funds into the forklift industry. The rapid development of the forklift industry has led some investors who follow the industry's development to the attention of some investors. On September 3, 2011, Guangzhou Francois Machinery Group and Shenzhen Xinyu invested in equity. The company formally signed a contract and reached a strategic cooperation relationship. On July 13, 2013, Zhong Ding (Shanghai) Venture Capital Management Co., Ltd. invested in the signing ceremony of Guangzhou Flanders Machinery Group held in Guangzhou Science and Technology Exchange Center of Tianan Science and Technology Park, Panyu; 2013 8 On the 18th, the signing ceremony of Hefei Baofa Power Technology Co., Ltd. and Shenzhen Xinyu Equity Investment Enterprise was successfully completed at Holiday Inn Express Hefei Zhongchen. The introduction of venture capital in the forklift industry is not a new miracle. The development prospects of the forklift industry may attract more investment companies to inject funds.

7. The industry will more standardize the “Additional Requirements for Automatic Functions of Industrial Vehicles and Vehicles” established on June 28, 2008 and implemented on May 1, 2009 by the National Technical Committee for Standardization of Industrial Vehicles, and the General Office of the State Council on February 17, 2013. With regard to strengthening the opinions on energy saving and emission reduction of the internal combustion engine industry, the "Secondary Forklift Circulation Technical Requirements" was formally implemented on July 1, 2013, and the "Special Equipment Safety Law of the People's Republic of China" was implemented on January 1, 2014. The machinery industry in 2013 In the standard project plan, the two plans of the 2013-0430T-JB and 2013-0431T-JB submitted by the National Industrial Truck Standardization Technical Committee to the Department of Equipment Industry are all related to the forklift parts, from the above standards and With regard to the formulation of laws and regulations, we can see that the forklift industry pays more attention to the formulation of safety and environmental standards, attaches importance to formulating stability test methods, and has a relatively large proportion of parts and components standards.

The development of various standards for forklift industry will be more conducive to the sustainable development of the industry.

8. The traditional marketing model will continue to change. The road for selling forklifts and selling forklifts will be narrower and narrower. The profit from sales of forklift trucks will become thinner and thinner. Instead, some new and innovative sales models will be adopted, citing the quality of AQSIQ. According to Yin Jiangchuan, deputy director of the company, “In the era of economic globalization, the brand has become the commanding height of global market competition, which determines the country’s position in the global industrial value chain and is an important embodiment of the core competence of the company and the country.”

Ninth, the market share will be highly concentrated There are currently about 120 domestic vehicle manufacturers. There are more than 60 active in the industry, and the degree of concentration is still relatively high. The top two companies account for about 50% of the total national sales, and the top 10 About 70%, in addition to some special market segmentation of vehicle manufacturers, the existing dozens of smaller machine manufacturers will be difficult to achieve scale efficiency, and ultimately may withdraw from the market.

In short, the "forklift people" who are engaged in China's forklift industry are still happy. The future of China's forklift industry is bright, but the road is also tortuous.