According to statistics from the National Equipment Rental and Used Equipment Professional Committee, by the end of 2010, only the transaction volume of used construction machinery nationwide had exceeded 100 billion yuan, and the trading volume exceeded 5 million units. In the past 2011, this figure is still increasing.

Industry insiders estimate that Shanxi Province currently has about 5,000 used construction machinery and equipment, and the transaction volume is nearly 1 billion yuan. Now that various types of projects are starting to take off, the excitement of second-hand transactions has made the Shanxi construction machinery market different.

On March 17, at the inaugural Shanxi Used Machinery Construction Development Forum, the concept of building a secondary market for construction machinery in Shanxi, which featured “trading, leasing, and auctioning”, was proposed and it was responded to by numerous agents and second-hand dealers. On the second day after the forum ended, the "easy-to-buy" website just created by a privately-owned second-hand machinery trade service provider also began to open beta...

Because of the higher transaction unit price and retention, second-hand construction machinery transactions are gradually considered as a new investment space by Shanxi industry players. Yu Xiaomei, secretary general of the National Equipment Rental and Used Equipment Professional Committee, said that the construction machinery industry has entered the “post-market” era of equipment replacement and will form recycling, processing (repair, refurbishment, remanufacturing), distribution and after-sales services in the future. A series of industrial chains, such as leasing and credit services, have been developed in the direction of large-scale operations.

1 “Post-market” era For most agents in Shanxi Province, sales of construction machinery industry experienced a roller coaster-like trend in 2011. As the new machine market has become transparent and tends to be saturated, the construction machinery market is entering an era of “aftermarket” rapid growth.

“Shanxi's construction machinery market is very unique across the country. Not only does its sales rank high, but it also accounts for a large proportion of large-scale machinery.” Zhan Yukuan, head of business operations at Shanxi Zhengkuo Engineering Machinery Sales Co., Ltd., said in the foundation Driven by the continued growth in investment in facilities, Shanxi Province has become a major trading province for construction machinery such as excavators, loaders and cranes.

However, with the rapid decline in the sales of excavators in 2011, second-hand construction machinery transactions have been increasing. Industry insiders predict that the construction machinery market will remain in a depressed state in 2012, and more used machinery and equipment will enter the trading market.

Zhan Yukuan told reporters that after April 2011, due to the project's stagnation and settlement, many car owners could not do anything, resulting in a large number of machinery entering the secondary trading market. At the same time, due to fierce market competition, agents in order to drive the sales of new aircraft, have to increase the "old for new" efforts.

“In the past, when agents sold two or three hundred new machines, they only had seven or eight second-hand machines to replace, and they could easily be disposed of. But now, for every 100 new machines sold, there are one or two replacement used machinery. Ten units. As a result, sellers, car owners, and brokers have accumulated more and more used machinery and equipment, and they hope to have a centralized channel to dispose of the equipment so that funds can be recovered as soon as possible."

At the same time, when the owners purchased the construction machinery, most of them used mortgage loans and financing leases for repurchase guarantees. However, due to the contraction of the project, a large number of equipment were idle, and the owners had to repay the loans if they had problems repaying the loans. If you can't deal with these devices in time, manufacturers will suffer huge losses.

Overall, second-hand construction machinery and equipment in the market mainly include imported, leased-out, failed-to-sell, used-for-sale equipment that has been used once or several times and assembled in the market.

According to Zhan Yukuan, in addition to agents, second-hand machinery channels come from vehicle owners and traffickers (brokers or brokers). "But compared with Hebei Xushui and other places, the traffickers in Shanxi are still immature. Most of them are based on personal sales. There are also some maintenance manufacturers who also deal with second-hand transactions."

However, the secondary machinery circulation industry in Shanxi Province has been slow to develop. Due to information asymmetry, fraud, and shoddyness, etc., buyers and sellers of second-hand machinery do not have confidence in the market, thus affecting the success rate of second-hand machinery transactions. Zhan Yukuan said that at present, the second-hand construction machinery trade in Shanxi province is still in the “free market” stage. In the actual transaction process, buyers often rely on their purchasing experience or dealers’ opinions to negotiate with the sellers, unable to conduct professional evaluation, and most of them do not sign. Sales service contracts, no invoices, and therefore cannot guarantee real prices and after-sales services.

In the impression of Zhan Yukuan, the earliest used construction machinery trading market in Taiyuan City should be near Yingyuan West Street Xiayuan, but it is at best a free market dominated by leasing, which is hardly a professional trading market. Because of this, Zhan Yukuen had the idea of ​​investing in a large-scale transaction leasing market for used construction machinery.

Wang Ruigang, general manager of Shanxi Yibaitong Machinery Information Service Co., Ltd., chose the second-hand machinery industry because the new machine market is becoming more transparent. There are pressure on the upstream manufacturers, competitors in the middle reaches, and customer requirements in the downstream. Profit margins are diluted a lot. . "The new aircraft has higher capital, so it's better to compare second-hand machinery with cost and cost," he said.

2Second-hand transactions open up new investment space Zhan Yukuan, who has been engaged in sales of large trucks in the past years, has worked in the security and pawn industries. "As a production tool, construction machinery not only has a large market, high unit price, but also is easy to mortgage." He said, but for the pawn industry, it is impossible to invest in the construction of a secondary market in order to develop a new product.

In view of this idea, Zhan Yukuan started a partnership to build a second-hand transaction rental market. Considering the issues of site investment and the source of machinery and equipment, they chose to start a website information platform with a lower cost. After gathering enough supply and demand information to examine the markets of Inner Mongolia and Hebei, and receiving the support of major distributors in Shanxi, in April 2011, Zhan Yukuan formally constructed and provided transactions and leases in Beige Town, Xiaodian District, Taiyuan City. , maintenance and service as one of the service base (hereinafter referred to as "North grid base"), and successfully held the first auction.

Zhan Yukuan told reporters that the North Georgia base now has 33 acres, and has about 100 sets of machinery and equipment, of which the agents account for most of the machinery. According to the full load calculation, the base can park more than 400 vehicles. Connected to the surrounding areas available, the future can reach a scale of more than 60 acres.

After a year of operation, Beige Base has reached cooperation with 16 powerful brand agents and has gained certain popularity in the circle. And some pawn shops also began to look for Zhan Yukuan cooperation. For the pawnshop, the trading market provides a good exit channel for the development of new products; likewise, the pawnshop also provides financial services for the trading market.

Because of the soaring of second-hand machinery caused by “replacement of old” and repurchases, VOLVO’s general agent in Shanxi Province—Shanxi Woyuan Construction Equipment Co., Ltd. actually established a second-hand excavation machine department that specializes in the Volvo brand. Used construction machinery sales.

Liu Jiuzhou, the company's second-hand excavation manager, told reporters that their second-hand excavation machine is located in Qingxu County and covers an area of ​​more than 100 mu. At present, there are 80 to 90 used machinery recovered, and each second-hand equipment must undergo rigorous testing. And test vehicles can be sold. The 4S shop that is under construction this year has specifically set up a second mobile phone repair refurbishment and remanufacturing business.

Zhan Yukuan said that Woyuan may be the first agent in Shanxi to operate according to the high-end model of foreign 4S stores. In other words, Shanxi will have the ability to provide high-standard secondary machinery products in the future.

Shanxi Weili Construction Machinery Sales Co., Ltd. is the exclusive agent of Hitachi Construction Machinery in Shanxi. Although a large number of used machinery have been replaced, they have not established a dedicated second-hand market. Liu Min, the company’s technical director, told reporters that since the second half of 2010, they have successively replaced and recycled twenty to thirty used machinery, and this number has been increasing. "These devices do indeed occupy a place, but we will, in principle, handle it within 3 months."

Liu Min thinks that Zhan Yukuan’s trading channel is still very useful for their agents. "If we build a second-hand trading market, the cost will be relatively large. We intend to choose multi-channel cooperation for the time being."

Wang Ruigang, who has been engaged in trading of second-hand construction machinery for many years, has been doing physical transactions before. He has more than 20 second-hand machinery at his stores on Tai Long Road. end of last year. He founded Shanxi Yibaitong Machinery Information Service Co., Ltd., which mainly deals with services such as sale and purchase of used construction machinery, consignment, and equipment evaluation. "In the initial stage, the website and the entity are separated. The website mainly provides information for both the supply and demand sides of the used construction machinery. The physical store does some follow-up services for the transaction. In the future, we may open more than 20 entity-operated and directly operated stores throughout the country."

Wang Ruigang said that he did not have the same model with Woyuan and Zhan Yukuan. “Woyuan's second-hand construction machinery is mainly to support the sales of new machines for self-owned brands. Zhan Yukuan uses the second-hand machinery trading platform to gather customers and focus on the financial services in the transaction.”

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