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The construction machinery industry has encountered a severe market situation that has lasted for almost four years. Data show that in April 2015, the output of major products in the construction machinery industry is still in a downward trend: from a month-on-month basis, except for the increase of 1.69% in compaction machinery, the growth rate of production in other sub-sectors has declined. The cumulative growth rate of the production of construction machinery industry products from January to April decreased year-on-year. Among them, the growth rate of the output of loaders, excavators, and shovel transportation machinery products continued to decline. With this market showing a "bear market," what are companies doing? A reporter from China Industry News recently interviewed Zhang Xiuwen, chairman of Shantui Construction Machinery Co., Ltd.
Reporter: Mr. Zhang, the severe market situation currently faced by the construction machinery industry, I don't think everyone needs to avoid it. From the data released by the industry, it can be clearly seen that the situation is not optimistic. As a leader in the bulldozer industry, how does Shantui view the current situation?
Zhang Xiuwen: This is indeed the case. At present, construction machinery has even expanded to a wider range of manufacturing industries. The market in many industries has continued to slump, and construction machinery is particularly prominent. I think there are at least two reasons for this. One is overcapacity. Construction machinery, automobiles, and cargo ships have all entered the industry, and their production capacity is tens of thousands. It is estimated that the capacity of loaders and excavators nationwide has exceeded 500,000 units respectively, which is far greater than the current market demand, and certain conditions and time are required for capacity digestion. Second, the holdings are too large. As of the end of 2013, China's main products of construction machinery have more than 6 million units. Among them, there are more than 1.4 million hydraulic excavators, about 80,000 bulldozers of more than 100 horsepower, and more than 1.7 million loaders. Graders, pavers, rollers, wheeled cranes, tower cranes, forklifts, etc. have a large amount It also far exceeds the total demand for construction in progress. Many of these equipments are aging and energy consumption is high. Experts and media have discussed the retirement of construction machinery, but in the end, no results.
Reporter: Capacity has already been formed, and it seems unlikely that a short-term reduction will occur. How long do you think this problem will be solved from the market side?
Zhang Xiuwen: The country put forward the strategic concept of the Belt and Road Initiative in 2013. This concept is very ambitious, and many specific steps have already begun to be implemented. At the same time, the domestic real estate market is showing signs of growth, and new construction is also growing. Therefore, I think the "new normal" of the construction machinery industry can already be expected.
Reporter: So where is the focus of Shantui's current work?
Zhang Xiuwen: Of course, we cannot relax in the market. In addition, we are committed to the comprehensive improvement of quality. On May 29, we held a chairman quality award and company-level key project launch meeting. A total of 22 projects were launched, all related to further improving quality. Carrying out quality tackling activities is a traditional means for Shantui to promote quality improvement and continuously improve product quality. We believe that under the condition of not full production tasks, it is the best time for us to study and solve technical problems and improve product quality. The "bear market" of the market may be the "bull market" of quality.
Reporter: I have also noticed relevant reports. At the same time, I heard that the Chairman's Quality Award has been established for the second time. It is a relatively widespread practice for enterprises to adopt methods such as labor competition and technical competition to achieve improvement. This game from Shantui seems special, is there any difference?
Zhang Xiuwen: Of the 22 projects, 12 are chairman quality awards and 10 are company-level projects. These items are carefully screened into the final competition. The purpose of setting up this chairman quality award is to hope that the company will form an atmosphere, which is to carry out solid and down-to-earth work to improve quality. In addition, we also want to screen out the very outstanding employees and teams, set a benchmark for all employees of our company, and also let our participants who have achieved outstanding results in this respect receive spiritual and material praise, so that Everyone is fighting for quality in the subconscious. I want to seek such outstanding people from three aspects. One is that in the series of activities of product design, manufacturing, and subsequent activities, there are some difficult and difficult diseases to be overcome, and people who need to find solutions to these problems must be found. The second is that he didn't invest much in improvement and improvement, but an idea and an idea finally produced great benefits. The third is to find the representatives to confirm them in the years of obscurity, resentment, and nothing earth-shattering, but there has never been a missed front-line worker, front-line technician, and front-line service staff. They are actually the "screws" of the enterprise. "" Is the cornerstone, although inconspicuous, but very critical.
Reporter: Shantui ’s recent Olympic skills competitions and customer care activities are all effective ways to improve product quality and service quality. Some people compare the market's slump to the "curve" in track and field competitions, which seem tortuous and are actually full of opportunities to surpass their opponents.
Zhang Xiuwen: Yes, so we choose to carry out activities such as the Chairman's Quality Award. We envisage that the activities should meet three goals: First, we want to make activities like this become a "vane" for the company's exogenous growth to endogenous growth. We can continue to optimize manufacturing through key management improvement and quality improvement projects The process allows Shantui's production capacity to break through the siege from quality and efficiency, to form a core competitiveness that is superior to others, and to transform the development mode of blindly pursuing income scale in the past into paying more attention to quality and efficiency and improving profitability; Publicize the "propaganda team" of Shantui's excellent corporate culture, and promote Shantui's pragmatic, tenacious, continuous improvement and innovation spirit; thirdly, become a trainer of improvement skills and process advancement, and teach everyone through the specific improvement process The basic method of promotion and the basic content of project management, and let this excellent project management improvement method be carried out at all levels of Shantui, carry forward, and make better management and quality improvement at all levels.
This year is Shantui's "reform and innovation" year. The system must be reformed, management must be reformed, and business philosophy must be reformed. Facing the severe market situation, only through reform and innovation can we go out of our way, and only by continuously improving the quality can our road be smoother. In the final analysis, both the quality of the product and the quality of the service are ultimately "creating value for customers".
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