Analysis of promoting and hindering factors in mining machinery industry

2, mining machinery industry hindrance factors

(1) The transformation of energy structure has an impact on the mining machinery industry

The scale of industrial development has brought the golden age of mining machinery manufacturing industry, but in recent years, with the new energy occupies an important position in people's life and work, the golden age of mining machinery development has gradually receded. Although traditional energy is still the mainstream of national energy demand, the demand for mining machinery has gradually slowed down.

(2) The total amount of mineral resources is gradually declining

In addition, with the increase of mining efforts, the total amount of mineral resources in China gradually declined, many mining areas no longer need a large number of mining machinery, the original mining machinery can also meet the daily needs, for energy development, the country has to put the vision to foreign countries, explore foreign mineral resources, buying mining may be the future development trend. The lack of domestic mineral resources for mining machinery demand is not very high.

(3) Macroeconomic downturn affects the demand for mineral products

Due to the adverse impact of the novel coronavirus epidemic, changes in the international economic environment, geopolitical conflicts, international oil price shocks, US dollar interest rate hikes, and the escalation of Sino-US trade frictions, China's economy has been impacted to a certain extent since 2020. The economic growth forecasts of the International Monetary Fund (IMF), the World Bank, the United Nations and other institutions, as well as indicators that are forward-looking indicators of economic growth, show that some economies in the world face the risk of economic recession in 2023. Traditional machinery manufacturing industry may be suppressed to a certain extent, mining machinery research and development and manufacturing will inevitably be affected, from the economic crisis, the growth rate of mining machinery development gradually declined, may continue to this state until the recovery of the world economy.

(4) Steel price fluctuations affect enterprise cost control

With steel as the main raw material, the cost of large castings, steel, profiles and other equipment core parts accounts for the total cost of equipment raw materials is higher, and iron ore is the most important raw material for the production of steel, so the price trend of iron ore and steel has a greater impact on the price of upstream parts and components, and indirectly affects the manufacturing cost of mining machinery. Since 2020, the price of iron ore and other commodities has fluctuated, which has brought certain fluctuations to equipment manufacturing costs. It is foreseeable that, affected by the trade frictions between China and India, Australia and other countries in the short term, the prices of raw materials such as iron ore and steel will continue to fluctuate greatly, and the cost control of enterprises in the industry will face certain pressure.

Second, mining machinery industry barriers analysis

1. Brand barrier

Because the downstream industry, mining, coal and other industries have a certain risk of work, the frequent failure of equipment will have a serious impact on it, so downstream customers have higher requirements for product performance, stability, failure rate and after-sales service, and also formed the characteristics of high customer loyalty in this industry and high willingness to repeat purchases. The brand of mining machinery and equipment can only accumulate a group of high-quality customers with stable cooperation after long-term and repeated market verification.

In order to ensure stable and sustained occupation and expand market share, mining machinery enterprises not only need to have a reliable quality control level and strong batch delivery ability, but also need to constantly improve the technology development and after-sales service system. Because it takes quite a long time to build a good brand image and product reputation in the downstream customer group, it is difficult for new entrants to build a good brand image and market competitiveness in the short term, and there are barriers to entry.

2. Technical barriers

Mining machinery is a technology-intensive product. Due to the differences in equipment application scenarios, material characteristics, environmental protection requirements, construction environment and other factors, the technical department needs to make corresponding design and adjustment according to the needs of customers. The product has the characteristics of multi-disciplinary integration, complex process and high technical requirements. The formation of the above-mentioned technological innovation ability needs to be based on long-term market feedback and their own strong technology research and development ability to continuously break through and improve, equipment enterprises with weak technological innovation ability can not form sustainable product upgrades, it is difficult to meet the changing needs of customers during the continuous cooperation, and it is easy to be at a disadvantage in the long-term market competition. Therefore, there are obvious barriers to technological innovation ability in mining machinery industry.