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To Analyze Overcapacity Problem of Crusher Industry in China

Date: Mar 04,2014

Excess production capacity namely refers to the sum of production capacity is greater than sum of spending power. China is one of the countries that have serious overcapacity problem. Generally speaking, overcapacity often appears in steel, cement, mechanical manufacturing and other industries, which will seriously hinder economic development when it is developing to a certain extent. Hence, overcapacity problem should be paid attention to. Here, we will mainly talk about overcapacity problem in crusher industry which belongs to heavy mechanical industry. In recent years, overcapacity problem in crusher industry is increasingly prominent.

In order to solve overcapacity problem in crusher industry, crusher enterprises should firstly understand the reasons causing overcapacity. In addition to government intervention, too fast economic growth and other external reasons, the main reason lies in crusher industry itself. Firstly, in recent years, crusher industry has shown great appeal. With urbanization development and new rural construction, market demand for mining crushers is increasing significantly. Many entrepreneurs are blindly into crusher industry, which lead to increasingly fierce competition of crusher industry, thus resulting in overcapacity gradually. Secondly, technical level of the whole crusher industry is relatively low. Independent innovation capacity of enterprises is wear, which makes competition between enterprises focus on yield rather than laying emphasis on improvement of innovation ability and product quality. Lastly, because of the reasons of system, industrial concentration of crusher industry is not high. Long-term chaotic market competition cannot realize efficient concentration of capital and brand.

Therefore, the most important method to solve overcapacity problem of crusher industry is to continuously improve comprehensive quality and independent innovation ability of enterprises, thus gradually improving technical content and level of product and changing traditional extensive mode of development. In addition, crusher enterprises can also merge, recombine and digest capacity, and transfer capacity by means of developing oversea market. Although the overcapacity problem is serious, however, as long as the enterprises accelerate cooperation and take effective measures, they can solve overcapacity problem and promote sound and continuous development of crusher industry. As leading manufacturer of domestic crusher industry, Hongxing Machinery plays a leading role in transformation and upgrading of crusher enterprises, which leads rapid development of the whole industry.

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