Since the beginning of this year, with the central and local governments actively promoting large-scale equipment upgrades and implementing the consumer goods trade-in program, market demand for machinery products has continued to improve, and the industry’s operation has further stabilized and improved. According to the latest data from the China Machinery Industry Federation, from January to April this year, multiple industries, including general equipment manufacturing, special equipment manufacturing, automobile manufacturing, and electrical machinery and equipment manufacturing, all showed varying degrees of growth. Furthermore, among the 122 major machinery products monitored, 56% achieved year-on-year growth in cumulative output in the first four months.
The steady improvement in the machinery equipment industry is largely due to strong macroeconomic policies, but it also relies heavily on related enterprises leveraging digital empowerment to create new engines for development.
Taking Shenzhen-listed companies as an example, machinery equipment companies such as Hangzhou Oxygen Plant, Jereh Oilfield Services, Meiya Optoelectronic, and Zoomlion all attach great importance to digital empowerment for enterprise development. In December 2023, the Central Economic Work Conference proposed promoting large-scale equipment upgrades and the replacement of old consumer goods with new ones. In March of this year, the State Council issued an action plan, proposing that by 2027, the scale of equipment investment in related fields should increase by more than 25% compared to 2023. A nationwide surge in equipment upgrades has also emerged, with Shandong, Sichuan, Zhejiang, and other regions introducing relevant measures. Benefiting from the favorable macroeconomic environment, listed machinery equipment companies are targeting digital transformation. Zoomlion, leveraging internet thinking and emerging digital technologies, has achieved breakthroughs in core technology areas such as the Internet of Things, cloud computing, big data, and generative artificial intelligence, focusing on core business scenarios. It is accelerating the construction of its digital support system, promoting the construction of multiple systems, and innovating traditional models to support business expansion and management operations with data. In 2023, Hangzhou Oxygen Plant Co., Ltd. focused on optimizing its process system and governance structure, promoting management improvement, launching digital transformation, and deeply advancing project-based management and intelligent manufacturing, implementing multiple projects. The company continued to improve and optimize its information management, effectively enhancing control efficiency and expanding its technical service business. Digital transformation has injected new momentum into the company’s development, while actively expanding overseas has opened up new horizons. Jereh Group Co., Ltd. continued to promote the synergy of its various business segments in overseas markets, focusing on global strategic customers and achieving new breakthroughs, increasing product market share and the company’s brand influence. In 2023, its full-industry chain functional layout in the North American market took initial shape, its localized team developed healthily, and it achieved several business results. Zoomlion has achieved remarkable results in deepening the expansion and upgrading of its overseas production bases, accelerating technological integration with German companies, cultivating and developing the new materials industry, strengthening its high-end market layout, and enhancing collaboration with leading global agricultural machinery manufacturers. Market analysts believe that while leading companies in the industry currently hold a dominant position due to their advantages, as market competition intensifies, small and medium-sized enterprises are also seeking expansion through differentiated competition and other means. With the gradual implementation of detailed measures for large-scale equipment upgrades and increased investment in key areas, the foundation for a stable and positive market outlook will be further solidified.
