On September 14, 2011, the National Development and Reform Commission issued the Notice on Deepening the Remanufacturing Pilot Work, which will expand the types and scope of remanufactured products, continue to select some representative companies with a remanufacturing base in the country, and explore the remanufacturing industry. Development policies, management systems, and regulatory systems provide experience in establishing relevant technical standards for remanufacturing, market access conditions, and circulation supervision systems, and increase support.
The "gold mine" urgently to be developed for the remanufacturing of construction machinery
In recent years, China’s infrastructure construction has continued to develop at a rapid rate, and the demand for various construction machinery has greatly increased. China has become a world leader in the production of construction machinery, and the huge amount of China Machinery Industry market provides unlimited business opportunities for remanufacturing. . According to statistics of China Construction Machinery Business Network, by the end of 2010, the market share of China's engineering machinery products will be around 4 million units; at the same time, China's construction machinery industry is entering the peak period of retirement, and by 2020 the amount of scrapped construction machinery products in China will be About 1.2 million vehicles, which provide sufficient remanufacturing resources for the construction machinery remanufacturing industry. Accompanied by the rapid growth of sales and possession of domestic construction machinery, finding a sustainable production and consumption model is crucial to promoting energy saving and emission reduction in the construction machinery industry. China's construction machinery industry has great potential for remanufacturing.
Chinese-style obstacles restricting remanufacturing development With active policies, domestic and foreign construction machinery companies have established remanufacturing companies, and remanufacturing has entered the operational level for the first time in China. However, according to the analysis of China's construction machinery trade, there are still many obstacles to the development of remanufacturing in China's environment at this stage.
First of all, the current remanufacturing of construction machinery lacks uniform standards. The remanufacturing of construction machinery in foreign developed countries all starts from the source, and there are strict regulations on the remanufacturing time of construction machinery. However, in China, it is not until the construction machinery is scrapped and then remanufactured. However, remanufacturing is carried out before the end of the life cycle, and there are no relevant requirements. At the same time, there is no quality standard for remanufactured products in China, which results in a lack of measurement basis for the quality of remanufactured products.
Second, the old domestic recycling channels are not smooth. Recycling the old parts is the biggest problem faced by the remanufacturing of construction machinery in China. As China has not yet opened up the free circulation market for used parts and components, it is very difficult for regular remanufacturers to obtain old parts. Taking the automotive industry as an example, a large number of auto parts dismantling plants scrapped parts, but according to the current state regulations, these parts can not be sold to remanufactured enterprises; and imported spare parts from abroad are considered as “foreign†in the country. The waste was confiscated and the company was fined, which trapped the remanufactured company's purchase channels for old parts. At this stage, the remanufacturing business of the construction machinery industry all revolves around the trade-in business, but it is difficult to form a batch advantage, and it is far from meeting the needs of production and market.
Again, the relevant national policies are still not perfect. Although the state promulgated the "Circular Economy Law," and stated that it supports the loans and other policies to a certain extent, but at present, the NDRC does not specify the specific subsidies and support efforts. In addition, the taxation issue, especially the 17% VAT output tax amount, is difficult to offset, becoming another important factor in suppressing the development of the remanufacturing industry in China's construction machinery industry. At present, the National Development and Reform Commission has issued the Notice on Deepening the Pilot Work of Remanufacturing. The purpose is to find out which policies need to be adjusted.
Finally, the consumer awareness and consumer culture of end-users in the Chinese construction machinery industry are also one of the factors that restrict the development of remanufacturing. The difference from foreign construction machinery customers is that the current dominant position among domestic customers is the one-time consumption concept. Customers' acceptance of new products is much higher than that of remanufactured products. However, analysts at the China Construction Machinery Business Network believe that in the market development process, this is an inevitable process of customer psychology, and the remanufacturing business is also very flat during Caterpillar's first 30 years of development. Currently, in the segment of excavators with a high value of individual products, customers have already shown a propensity to consume in favor of remanufacturing. It takes time for the market to allow Chinese construction machinery customers to increase their awareness of remanufactured products. It is believed that the current market gap is large and the market potential for the future will be great!
The "gold mine" urgently to be developed for the remanufacturing of construction machinery
In recent years, China’s infrastructure construction has continued to develop at a rapid rate, and the demand for various construction machinery has greatly increased. China has become a world leader in the production of construction machinery, and the huge amount of China Machinery Industry market provides unlimited business opportunities for remanufacturing. . According to statistics of China Construction Machinery Business Network, by the end of 2010, the market share of China's engineering machinery products will be around 4 million units; at the same time, China's construction machinery industry is entering the peak period of retirement, and by 2020 the amount of scrapped construction machinery products in China will be About 1.2 million vehicles, which provide sufficient remanufacturing resources for the construction machinery remanufacturing industry. Accompanied by the rapid growth of sales and possession of domestic construction machinery, finding a sustainable production and consumption model is crucial to promoting energy saving and emission reduction in the construction machinery industry. China's construction machinery industry has great potential for remanufacturing.
Chinese-style obstacles restricting remanufacturing development With active policies, domestic and foreign construction machinery companies have established remanufacturing companies, and remanufacturing has entered the operational level for the first time in China. However, according to the analysis of China's construction machinery trade, there are still many obstacles to the development of remanufacturing in China's environment at this stage.
First of all, the current remanufacturing of construction machinery lacks uniform standards. The remanufacturing of construction machinery in foreign developed countries all starts from the source, and there are strict regulations on the remanufacturing time of construction machinery. However, in China, it is not until the construction machinery is scrapped and then remanufactured. However, remanufacturing is carried out before the end of the life cycle, and there are no relevant requirements. At the same time, there is no quality standard for remanufactured products in China, which results in a lack of measurement basis for the quality of remanufactured products.
Second, the old domestic recycling channels are not smooth. Recycling the old parts is the biggest problem faced by the remanufacturing of construction machinery in China. As China has not yet opened up the free circulation market for used parts and components, it is very difficult for regular remanufacturers to obtain old parts. Taking the automotive industry as an example, a large number of auto parts dismantling plants scrapped parts, but according to the current state regulations, these parts can not be sold to remanufactured enterprises; and imported spare parts from abroad are considered as “foreign†in the country. The waste was confiscated and the company was fined, which trapped the remanufactured company's purchase channels for old parts. At this stage, the remanufacturing business of the construction machinery industry all revolves around the trade-in business, but it is difficult to form a batch advantage, and it is far from meeting the needs of production and market.
Again, the relevant national policies are still not perfect. Although the state promulgated the "Circular Economy Law," and stated that it supports the loans and other policies to a certain extent, but at present, the NDRC does not specify the specific subsidies and support efforts. In addition, the taxation issue, especially the 17% VAT output tax amount, is difficult to offset, becoming another important factor in suppressing the development of the remanufacturing industry in China's construction machinery industry. At present, the National Development and Reform Commission has issued the Notice on Deepening the Pilot Work of Remanufacturing. The purpose is to find out which policies need to be adjusted.
Finally, the consumer awareness and consumer culture of end-users in the Chinese construction machinery industry are also one of the factors that restrict the development of remanufacturing. The difference from foreign construction machinery customers is that the current dominant position among domestic customers is the one-time consumption concept. Customers' acceptance of new products is much higher than that of remanufactured products. However, analysts at the China Construction Machinery Business Network believe that in the market development process, this is an inevitable process of customer psychology, and the remanufacturing business is also very flat during Caterpillar's first 30 years of development. Currently, in the segment of excavators with a high value of individual products, customers have already shown a propensity to consume in favor of remanufacturing. It takes time for the market to allow Chinese construction machinery customers to increase their awareness of remanufactured products. It is believed that the current market gap is large and the market potential for the future will be great!
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