Viewing the Upgrading of Agricultural Machinery Industry from a Normal Perspective

Whether it is the overdraft consumption during the implementation of the "National Third Upgrade National Fourth" policy last year, or the performance of the National Fourth engine that needs further consideration, the power machinery market has entered a wait-and-see and waiting period. At the same time, as the stock of agricultural machinery products enters a period of centralized updating, the wave of "two mobile phones" replacement is coming, and at this time, users' purchasing power and consumption desire are generally insufficient. For the agricultural machinery industry, which is in the deep stage of upgrading and transformation, the pressure is enormous and there is a long way to go.

That is to say, as the first year of the comprehensive end of the epidemic, we eagerly look forward to the outbreak of consumption and the correction of economic operation. However, in reality, the market situation in 2023 is still in a recovery period, and the slowdown in growth rate is also a normalization. For the agricultural machinery industry in the stage of transformation and upgrading, everyone's feeling is the same, that is, the market demand is weak, competition is becoming increasingly fierce, and there is no hope for the future.

Since entering the transformation and upgrading period in 2015, the domestic agricultural machinery industry has made continuous progress in all elements of the value chain, including the alternation of new and old industries, high-end intelligent innovation of products, domestic substitution of imported products, niche product exploration and industrialization expansion, and industrial policy guidance adjustment. The tone of high-quality development is stable, and the industrial competitiveness is rapidly improving. There are always two sides to the development of things, and the pros and cons coexist. Behind the industrial upgrading, there will inevitably be cruel industrial restructuring, slower growth, intensified competition, and other tests. In addition, the impact of the epidemic from 2020 to 2022, for everyone in the agricultural machinery industry, the pressure for survival and development is not small. We not only ask, what will industrial upgrading bring us?

Today's global market competition has shown completely new characteristics under the influence of multiple factors such as informatization, post pandemic, technological innovation, trade disputes, and even war conflicts. To stand on the international competition stage, one must run faster in industrial upgrading. Let's take a look at the foreign trade data for the first quarter of this year. The growth rate of 4.8% was achieved throughout the first quarter, especially the 23.4% year-on-year increase in exports in March, which was unexpected for many people because the consensus on foreign trade this year was very difficult. The fact that imports and exports in the first two months were -0.8% year-on-year also confirms the fact that foreign trade is difficult, but no one expected that the growth in March would be quite good. From the perspective of foreign trade structure, the main driving force for growth in March came from electric vehicles, lithium batteries, and solar cells, contributing a total export value of over 100 billion yuan, a year-on-year increase of 66.9%, known as the "new three samples". Among them, automobiles have the greatest driving effect, with a year-on-year increase of 99%. This "new three samples" is one of the answers to industrial upgrading. Taking the automotive industry as an example, in recent years, China has achieved rapid upgrading in the field of new energy in the automotive industry, seizing the advantage and achieving remarkable results. For example, BYD has expanded very rapidly in recent years, building factories and various research and development centers around the world, and capacity expansion naturally requires hiring, which has brought more job opportunities. According to statistics, in 2018, BYD only had 220000 people, and by 2022, the total number of employees reached 650000, It is expected to reach 900000 yuan by 2023, and its driving force for supporting industries and related economic development is immeasurable. This is undoubtedly the huge effect brought by industrial upgrading.

From the case of upgrading the automotive industry, let's examine the path of upgrading the agricultural machinery industry. Undoubtedly, the transformation and upgrading of the domestic agricultural machinery industry is a necessary path and law for development. This process will be arduous, tortuous, painful, and challenging. For every enterprise in the process of transformation and upgrading, it will feel the enormous pressure of industrial development adjustment and face the impact of industrial structure optimization. To improve the quality of development, the operating speed must be appropriately reduced, In the face of enormous survival pressure, in order for enterprises to survive, they must find their positioning, keep up with the pace, and accelerate innovation in the context of industrial development. This process is very cruel. So, we see more and more brands with weak competitiveness being eliminated, and many brands with core competitiveness stand out and grow into cutting-edge forces in the new competitive environment.

Faced with industrial upgrading, we must be confident and seize the opportunity. In fact, behind the hard work, we have begun to enjoy the fruitful results brought about by industrial upgrading, such as the localization of imported agricultural machinery products. More and more domestic agricultural machinery products and core technologies are breaking through the barriers of foreign monopoly, such as Cotton picker, sugarcane harvesters, large Forage harvester and other products. The technology of domestic products is becoming more mature, and the cost of users' purchase, service, and accessories is greatly reduced, The dividends of industrial upgrading have already emerged. For example, the intelligent upgrading of agricultural machinery products, such as unmanned aerial spraying, unmanned driving operations, and digital agricultural management, not only liberates people's hands and reduces physical labor, but also makes agricultural cultivation more precise and food security more guaranteed. The modernization of agricultural machinery is showing a new face in the upgrading of the agricultural machinery industry, increasing employment opportunities and liberating people's hands to participate in more physical and intelligent work fields, gradually freeing Chinese farmers from the harsh working environment, and making more thoughtful farmers, especially young people, become the "new blue collar" of modern agriculture.

Looking back, we can not deny the extraordinary progress made in the domestic agricultural machinery industry. Today, domestic agricultural machinery products have basically met the needs of Mechanised agriculture, and the degree of Mechanised agriculture has increased year by year. However, we also have to face many problems that have arisen in the development of the agricultural machinery industry, such as overcapacity in the middle and low end, insufficient control of high-end technology, blind spots in core components and processes, and weak development of key CNC systems. If our own capabilities are insufficient, we have to rely on external forces, which naturally leads to a lot of import dependence. High end technology is in the hands of a few upstream giants, which means that the industrial voice and profits will be concentrated upward. For downstream enterprises, there is basically no Bargaining power, leaving little profit space. At the same time, due to their limited mastery of low-end technology and insufficient technical barriers, they will also face a large influx of competitors, ultimately leading to excessive competition. To develop, one must be strong in oneself.

Some economists say that whether from the perspective of the entire business environment or marketing, we are all in an era of change, and the entire era is mercilessly undergoing a major reshuffle. The upgrading of the agricultural machinery industry is the only path for industrial development, and the only way is to increase innovation, master core technologies, complete the transformation from scale growth to quality growth, fill the gaps, and seize the global industrial commanding heights.