Key competitive factors that affect construction & mining equipment manufacturers include service, distribution networks, quality, features and price. In addition, unprecedented growth in the rental industry transformed the landscape for customers, manufacturers and distributors of construction equipment. Further, key end markets for construction equipment such as mining and forestry exert a significant impact on the industry.
The construction and mining machinery/equipment market is in the midst of a consolidation phase, as acquisitions and strategic partnerships are still continuing after a spurt in the consolidation wave of the nineties. The highly competitive industry is going through price levels in the rage with serious fluctuations on iron ore, coal, gold etc. at present. With this situation, it turns into competitions of product quality and service gradually.
If the equipment manufacturing industry upgrades, research-and-development-oriented enterprises will benefit. We think that the comparative advantage of the labor cost in China machinery industry is disappearing, so the upgrade of equipment manufacturing industry is the only way to success. At present the r&d investment is only that of about 2 percent for the 204 listed enterprises in our country machinery industry. But according to the fact that In America the R&D fees reach 6 percent for the 245 listed mechanical enterprises, the research and development investment of China machinery industry is insufficient. Looking from the American development experience, if an enterprise increases its r&d investment dramatically, its business performance and the profit level will improve greatly in the next 5 to 10 years, and excess returns of these listed companies is also much higher than that companies with less investment.
Therefore, if an enterprise wants to grasp clients and make profits in the unstable market, it's necessary and efficient to improve product quality and intensify all aspects of services. Obviously, many companies are in the innovation and have manufactured many new types of machines, such as PE series jaw crusher, movable crushing station, haydraulic cone crusher, permanent magnetic separator and so on.As a professional and the best mining machinery manufacturer in China, Hongxing Machinery is always ready to provide the superior aggregate mixer, ore screening equipment, and these machines have the most competitive price and the most reliable quality so that they are the top choices for the high performance crushing equipment.