Crane competitive pressures grow in China

The Chinese crane industry faces an increasingly competitive future as domestic production capacity grows and more foreign manufacturers enter the market, said Su Zi Meng, secretary general of the China Construction Machinery Association, speaking at the second International Crane Summit in Shanghai, China.

Mr Su said that China's growth, its membership of the World Trade Agreement (WTO) and the subsequent lowering of crane import duties had helped increase sales volumes from 5000 units in 2000 to almost 27500 units in 2009, increasing further to 27570 in the first nine months of 2010. He said China had become "a world leader in terms of [market] openness."

However, this growth was creating problems. "As the Chinese crane market production capacity has been increasing at a more rapid pace, and since some enterprises are fixed on ‘generic' products, market risk has increased", said Mr Su.

He said that China still represented a long-lasting market opportunity for crane manufacturers; "they face a precious opportunity for development, but the market competition will become increasingly fierce."

Mr Su identified other problems for the fast-growing Chinese crane market, including the import of used cranes in "large volume" - second only in volume to excavators. He said this was becoming an important factor in China's efforts to produce energy savings and emission reductions in the construction equipment sector.

Other issues included the relatively undeveloped component sector in China and the problems of 55 t transport limits on Chinese roads.

Mr Su concluded that "if Chinese and foreign crane industries and all their related associations, organisations and media strengthen cooperation, supply each other's needs, and create a win-win situation, mutual development can be realised."