Hardware companies wary of business risks

 Electrolytic capacitors, aluminum foil coating appear in the construction machinery industry chain , in addition to high- quality hydraulic , transmission and engine supplier has an absolute right to speak , the other supporting parts suppliers and machine manufacturers compared at a distinct disadvantaged . According to the China Construction Machinery Business survey in April and May this year, accompanied by the rapid decline in demand , machine manufacturers have reduced the amount of parts procurement , the actual purchase volume decreased by 10 % -40 % range over the beginning of the year a few , especially some of the Prophet Illuminati 's machine manufacturers , in response to market risk, maintain inventory turns normal , active significantly reduce production. Therefore, in this round of market adjustment, spare parts business " injury" is much higher than the level of machine manufacturers .
 
    2009 , 2010 , and continued to hit the market machine manufacturers instill optimism ultimate idea is supporting enterprise expansion , expansion further expansion . New on the market is now popular practice is centered on supporting the establishment of machine manufacturers industrial park , many supporting companies were invited to invest and build factories to the park , to achieve closer cooperation with machine manufacturers . Understandably, this approach is very beneficial for machine manufacturers , not only can reduce procurement costs , but also can help companies improve the supporting system , and enhance competitiveness. Another approach is to require manufacturers supporting the whole logistics and warehousing companies to establish centers in the surrounding area , shorten the supply radius. Whatever the approach , supporting enterprises are mainly machine manufacturers to follow the investment strategy , the lack of autonomy.
 
    When the market demand , machine manufacturers and supplier relationships are often very well , a thriving. When shrinking demand , due to the conduction part too , supporting enterprises truly realize the market has shrunk significantly lag. According to the China Construction Machinery Business survey at the end of each year , machine manufacturers suppliers meeting will be held to announce next year's procurement standards and production plans , require suppliers to meet production . The biggest problem with this transmission mechanism is machine manufacturers are often too optimistic about next year's market demand, planned purchase amount exceeds real demand , some suppliers due to the lack of grasp of the market , the machine will blindly follow the manufacturer's procurement plans expansion , hit similar to this year's market correction, a large-scale expansion of the supporting parts suppliers will be very " hurt ." 2010 fame crawler excavator manufacturer had to face this summer massive inventory sighed . Based on the market is not optimistic expectations , a joint venture excavator manufacturer of large-scale production some time ago , but recently forced suppliers and personnel flow pressure , restored part of the production . For suppliers , machine manufacturers such strategic adjustment just to maintain a good working relationship , and does not reflect the true market supply and demand . Therefore , vendors must keep a clear head, multi-angle to determine changes in market demand , to avoid the accumulation of greater operating risks.
 
    Japan earthquake triggered a deep global supply chain thinking , since Japan occupies a pivotal position in the global manufacturing support system , so think about the perspective of the whole enterprise focused on this part of the procurement risk , rarely reverse thinking sound. In the construction machinery industry , some supporting enterprise customer concentration is very high, even for a single customer accounted for more than 80% of sales revenue to total revenue, operating risks such enterprises is very large, once the downstream procurement enterprises have production fluctuations upstream supporting enterprise risk factors show a geometric growth in the short term or even a " disaster ." Therefore, it has become the scale of complementary businesses , "decentralized supply " has become the enterprise had to do homework. In addition, from the point of view of market structure , a single channel supporting walking risks is very large , it might be sinking into the aftermarket and maintenance services market , the balance of income in different market segments , reduce performance volatility.
 
    In the construction machinery industry , Kawasaki, Japan , Isuzu such enterprises supporting domestic enterprises contrast , operational risk is much smaller. The former is the most important advantage of technology and product quality, and its competitors to provide the same quality is less , and such enterprises are often agents of technological change , is leading the development of the industry 's backbone. So, in the long run , reduce business risk is the most important means to improve their own strength, with strong R & D capabilities and high -quality products to respond to market risk.