Abstract In today's domestic construction machinery market, where growth has slowed and the demographic dividend is fading, the challenge of relying on foreign core components has become increasingly evident. This issue has persisted for years without a clear solution, leaving many companies struggling with a lack of competitiveness in critical areas. The industry has long been constrained by its dependence on imported parts, which continues to hinder its development and innovation.
The situation has been a major pain point for the domestic construction machinery sector. Despite efforts over the years, there has yet to be a breakthrough that addresses the root cause of this dependency. Core components—such as hydraulics, engines, and control systems—are still largely sourced from abroad, leading to high costs and limited control over supply chains.
According to industry experts, the reliance on foreign suppliers not only increases production costs but also limits the ability of domestic manufacturers to respond quickly to market demands. For example, hydraulic components and engines are among the most expensive parts in construction machinery, often accounting for 30% to 50% of the total cost. In the case of excavators, the cost of these key components can reach up to 42% of the overall price.
Imported hydraulic parts, in particular, have become a major drain on profits. A report by Huatai United Securities revealed that these components consume as much as 70% of the profit margin for domestic manufacturers. Moreover, foreign suppliers often impose long lead times, making it difficult for Chinese companies to manage their production schedules effectively.
For instance, the supply cycle for Rexroth’s hydraulic products in Germany can last up to 88 weeks, meaning that orders must be placed nearly a year and a half in advance. This creates significant uncertainty and limits flexibility in production planning.
Foreign brands currently hold more than 70% of the market share for excavator hydraulic cylinders. Their dominant position allows them to set terms that favor their interests, such as requiring early orders and extending delivery times. This was highlighted in a report by the People’s Daily five years ago, which noted that companies like Zoomlion and Sany Heavy Industries had to adjust their production schedules due to supply shortages of overseas components.
Even in the current "12th Five-Year Development Plan" for the construction machinery industry, the problem remains. Key components—especially those involving high-tech and high-value-added functions—still rely heavily on imports. These parts often cost over $80,000 per ton, and shortages of transmission systems, control units, diesel engines, and hydraulic components continue to limit the industry’s ability to develop advanced, high-end products.
This ongoing challenge underscores the urgent need for domestic companies to invest in research and development, improve self-reliance, and build a stronger, more resilient supply chain. Only through such efforts can the industry break free from its current constraints and achieve sustainable growth.Fire Pump Set,Electric Fire Pump Set,Dual Fire Pump Set,Vertical Turbine Fire Pump Set
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