Research About International Competitiveness Of China’ Construction Machinery Industry

Construction machinery industry is the basis of the national economy, and playsan important role in the national economy. In the current domestic and internationalsituation, China’s construction machinery industry faces more intense internationalcompetition. It’s a critical period for China’s construction machinery industry. Thispaper selects the construction machinery industry internationally competitivenessresearch about its development status, future trends and the competitiveness ofenterprises. In order to find the way to face of more intense international competitionof China’s construction machinery industry, this paper try to provide theoretical basisfor China’s construction machinery industry policy and construction machinerybusiness decisions.Chapter1is the introduction of this paper, which includes a comprehensiveexposition of global economic integration, the shift of economic growth, descriptionof the purpose and significance of this paper. Chapter1introduces the researchmethod, and summarizes the innovation and inadequate.Chapter2is a synthesis of research at home and abroad, on the aspects of therelationship between the definition of industrial competitiveness, nationalcompetitiveness and industrial competitiveness among the factors affecting industrialcompetitiveness, industrial competitiveness evaluation methods.On the basis of literature competitiveness of enterprises and industrialcompetitiveness, chapter3divided the industry internationally competitive factorsinto three levels: basic factors, the decisive factor, and system factors, and as a structural study of China’s construction machinery industry internationalcompetitiveness.Chapter4analyzes the systemic factors of China’s construction machineryindustry internationally competitive and some basic factors. The results show thatalthough in the past dozen years China’s construction machinery industry hasundergone considerable development, the domestic and the international situation isnot optimistic. China’s economic growth slowed down by the global economicdownturn and the impact of effective demand for construction machinery industry isdecreasing. China is moving from a high-speed consecutive years of double-digitgrowth to continue in the rapid growth of fixed asset investment growth slowed. Andthis trend is likely to be long-term in nature. The construction machinery industry andeconomic growth in fixed asset investment growth rate and greater relevance, futureconstruction machinery industry market competition will become more intense.Chapter5examines the technological level of China’s construction machineryindustry, which is one of the decisive internationally competitive factors. The resultsshow that multinational demonstration FDI investment effect is much obvious,mainly according to market competition and technology spillovers, and technologyspillover effect brought about by the flow of human capital is relatively small. Overall,FDI investment is an important way. According to technology spillover effect, China’sconstruction machinery industry catches up the technology gap. But it has becomevery difficult to continue through multinational technology to improve learning skills.Therefore, local enterprises should strengthen the cultivation of independent researchand development capabilities.According to panel data models found, this paperstudies R&D investment for China’s construction machinery industry output. Theresult shows elasticity of about0.19, so to improve productivity havs a significanteffect, but the effect is still lower than the capital and labor. And China’s construction machinery industry is still in the stage of increasing returns to scale, an increase ofproduction factors can increase the construction machinery industry output. China’srapid growth of economic development and the construction of fixed asset investmenthave brought a lot of demand for construction machinery, the most direct way toexpand production is to increase input, and boost sales through debt sales and othermeans. But when China’s economic growth is slowing down and lead to reduceddemand, companies must strengthen technology to gain a competitiveness. China’senterprises technique is more obvious weaknesses, and needs to catch up with thefuture through increased R&D investment, improving R&D efficiency and othermeans.In Chapter6, a comparative analysis of DEA cross-evaluation of domestic andforeign construction machinery enterprises performance, results show that China’sconstruction machinery enterprises in the input-output efficiency is not inferior toforeign companies. In the evaluation, Zoomlion ranked first, the international giantCaterpillar came in second place, XCMG and Sany followed. But the reason ofChinese companies operating efficiency high ranking is not clear, we cannot excluddif there is a low Chinese prices of production factors influence. China’s hugeadvantages in human resources can not only manifested in the low-endlabor-intensive industries, the same can be expressed in a number of high-techindustries. Skilled workers and engineers’ salary levels is far below other countries,governments are often at a lower price or even free offer land and other resources tocompanies. Thus, while Chinese companies dominant in the efficiency evaluation, butit does not determine the Chinese construction machinery enterprises is truly moreefficient than foreign companies, or because China’s production factors lead to lowerprices. Meanwhile, it is worth noting that China’s factor price is gradually rising.Chapter7studies the effects of cluster which has an important role in the development process of the construction machinery industry in China. The resultshows that the development of industrial clusters is an effective mode of formation ofindustrial competitiveness for China’s construction machinery industry internationallycompetitive. After years of development, China’s construction machinery industrycluster formed six Xuzhou, Changzhou, Changsha, Jining, Xiamen and Liuzhourepresented.Chapter8selected location factors, four scale factors, technology andinnovation factors and operational efficiency factors to measure the competitivenessof construction machinery enterprises. Scale factor which contains GDP growth rateof fixed asset investment growth rate, the world’s top20sales companies and otherindicators of the number. Scale factors include the company’s number of employees,total assets and fixed assets and other indicators, technology and innovation factorsinclude the R&D expenses as a percentage of sales to revenue targets, R&Dpersonnel accounted for, average product prices. By gray correlation analysis toidentify the importance of various indicators affecting competitiveness, ranking theimportance of each indicator is the total assets> operating efficiency> Fixed Assets>R&D personnel accounted for> R&D expenses as a percentage proportion of salesrevenue> Number of employees> Fixed asset investment growth rate> GDP growth>before the number of enterprises worldwide sales of>20, the average price of theproduct. According to the results, a reasonable allocation for each index weights.Establish competitiveness index and method using the weighted according to the levelof participating companies sorted out as Zoomlion, Caterpillar, Sany, XCMGmachinery, Komatsu, Terex, Hitachi Construction Machinery, Doosan, XiamenEngineering shares, Hill pushed shares, Liugong, Sunward. China’s constructionmachinery enterprises achieved good results. But Chinese companies score mainlydue to a higher score in the location factors and operating efficiency on both, and the reason these two are not necessarily able to score higher sustained. Need to strive toimprove the low score among the other indicators in order to compensate for thedecline in both of them.On the previous text-based study, Chapter9proposed which raise China’sconstruction machinery industry international competitiveness of strategic responses,mainly from how to speed up the formation of independent research and developmentcapabilities, the use of capital operation and actively carry out overseas acquisitions,actively planning overseas layout, advance planning It should trade friction, tosupport development of leading enterprises in order to improve the industryconcentration, accelerate the development of high-end engineering machinery, as wellas from the perspective of industrial cluster strategy to enhance the competitivenessof China’s construction machinery industry.After the construction machinery industry conducted a comprehensive analysis,we believe that the status quo construction machinery industry and future trends andpolicy recommendations put forward countermeasures.