Sino-German Machinery Manufacturing: Powerful Opponents and Power

The German Federation of Machinery and Equipment Manufacturers published a report on the strategy of China's machinery market on February 18th. The report entitled "China's Competitive Strategy and Implications for China's Machinery Manufacturing" was presented by the Federation Impuls Foundation and some professional committees. Commissioned Eurasia Consulting Company EAC to complete.

Reinhold Festge, chairman of the German Machinery and Equipment Manufacturing Federation, said that the German machinery manufacturing industry must take seriously the high-end equipment manufacturing policy in China's 12th five-year plan.

This research report conducted an in-depth analysis of the value chain of the eight industries under the machinery manufacturing industry, covering machine tools, textile machinery, heat treatment technology, compressors, compressed air and vacuum technology, pump technology, wood processing machinery, foundry machinery and metallurgical steel rolling equipment. .

The report shows that Chinese customers are very much convinced of the technological content of German machinery manufacturing, but Chinese manufacturers are even better at developing mid-markets and services. This is not only a unique phenomenon in China, but should be an international strategy for German companies. core.

In the past five years, the average Chinese competitor began to expand its export scale. The first wave of export markets was mainly in Southeast Asia and India, and the second wave after 2015 began to enter the European and American markets with mid-range products.

For German machinery manufacturers, mid-range technology will provide them with greater opportunities.

The report pointed out that German companies should not be limited to the top of the technology pyramid. Reinhold Festge believes that in view of the increased price sensitivity of the Chinese market, Germany must formulate Germany's "top-down strategy" in accordance with China's "bottom-to-bottom strategy."

In terms of localization services, German companies need to increase their efforts relative to their Chinese counterparts.

In 2012, China’s machinery sales reached 678 billion euros, being the world’s largest machinery producing country, exporting 17 billion euros and becoming the third largest mechanical exporter, second only to Germany and the United States. The chief economist of the German Federation of Machinery and Equipment Manufacturers expects that China's machinery equipment sales will achieve a 7% increase in 2014.

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