Mining machinery industry business model and development status analysis

Mining machinery industry business model

The mining machinery industry has the characteristics of high production technology requirements, difficult R & D and innovation, and strong professionalism. In order to achieve reasonable allocation of resources, medium and high-end manufacturers have basically formed a business model of "independent research and development, core self-production, and some external mining", that is, independent technology research and development, program and product design, core component production and machine assembly. Other non-core components and non-core processes are completed through external procurement and outsourcing processing.

Mining machinery industry product equipment has a certain non-standardized characteristics, therefore, the industry enterprises generally adopt the "sales to order production, production to order" business model, at the same time according to the price changes in the raw material market and product equipment maintenance and update cycle reserve the appropriate raw materials and finished products in advance.

The sales of mining machinery industry are mainly direct sales, supplemented by agent sales, and larger enterprises set up offices in the main sales areas to carry out sales, training, after-sales service and other work directly for end customers.

Mining machinery industry development status

From 2013 to 2017, the overall output of China's mining machinery and equipment industry maintained growth, from 2018 to 2020, affected by the supply-side reform, the cost of mining special equipment industry rose, and at the same time the rapid development of new energy industry, mining professional equipment industry demand is weak, and the overall decline in production, according to the National Bureau of Statistics data. Since 2018, the production of special mining equipment in China has declined sharply, and the annual output is only 5.925,300 tons. By 2020, affected by the new coronavirus epidemic, the output of special equipment for mines in China will be 6.536 million tons, down 195,000 tons year-on-year. In 2021, the continuous rise of coal, metal and other prices has brought about the continuous improvement of downstream expansion willingness, stimulating the growth of demand for special mining equipment, and the production of special mining equipment in China has increased to 6,884,300 tons in 2021.

In recent years, with the growth of domestic market demand, the scale of domestic mining machinery manufacturing industry has grown steadily, and the sales revenue of China's mining machinery industry has reached 373.44 billion yuan in 2013, and the sales revenue of domestic mining machinery industry has reached 471.11 billion yuan by 2021.