Policy Watch

01 The EU imposes high tariffs on China's aerial work platforms

Following the EU's anti-dumping investigation against China in November 2023, on June 14, the EU published an outline of the proposed temporary tariffs on aerial work platforms produced by Chinese companies, with a maximum rate of 56.1%. According to the European Commission, the temporary tariffs are intended to protect EU countries from dumped imports of mobile aerial work platforms from China, mainly for mobile aerial work platforms with a maximum height of 6 meters or more, as well as partial imports that are pre-assembled or ready to be assembled, excluding individual components and personnel lifting equipment mounted on vehicles. According to a survey by the Chinese Chamber of Commerce in the European Union, for most Chinese manufacturers, the European side imposes tariffs of more than 10% in the high range, which will have a direct negative impact on their exports to Europe. If the current temporary tariff range of 31.3%-56.1% is imposed, it means more severe barriers to market access.

02 The central government has successively introduced detailed policies for the renewal of landing equipment

Since the State Council issued the "Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods" in March this year, the central and local governments have successively introduced detailed policies. The Ministry of Industry and Information Technology and other seven departments jointly issued the "Implementation Plan for Promoting the Renewal of Equipment in the Industrial Field", proposing to accelerate the elimination of backward and inefficient equipment and outdated equipment for the overall production equipment of industrial machine tools, agricultural machinery, construction machinery and other industries at a low level, focusing on promoting the construction machinery industry to update hydraulic presses, bending machines, obsolete production lines and online testing equipment. The Ministry of Housing and Urban-Rural Development issued the "Implementation Plan for Promoting the Renewal of Construction and Municipal Infrastructure Equipment", proposing to update and eliminate construction machinery and equipment that have been used for more than 10 years, high pollution, high energy consumption, serious aging and wear, and backward technology, including excavation, lifting, loading, concrete mixing, lifts, bulldozers and other equipment (vehicles). Encourage the renewal of the purchase of new energy, new technology construction machinery and equipment. The Ministry of Finance and other four departments issued the "Notice on the Implementation of the Financial Interest Discount Policy for Equipment Renewal Loans", which pointed out that the central government will discount the principal of bank loans to business entities by 1 percentage point. The interest discount will be given according to the date when the relevant loan funds are transferred to the supplier's account, and the interest discount period shall not exceed 2 years, and the policy framework of this round of large-scale equipment renewal will be further improved. The Hunan Provincial People's Government issued the "Hunan Province Implementation Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in", which clearly proposes to encourage the purchase of new energy and new technology construction machinery and equipment, and vigorously promote the development of remanufacturing industries such as construction machinery, agricultural machinery and rail transit with a good industrial foundation.

03 Policies help improve the supply chain management level of manufacturing enterprises

On May 20, the Ministry of Industry and Information Technology and other three departments issued the "Guidelines for Improving the Supply Chain Management Level of Manufacturing Enterprises (Trial)", aiming to promote the deep embedding of the modern supply chain system into the manufacturing industry chain and multi-party collaboration to improve the supply chain management level of manufacturing enterprises. The "Guide" is guided by promoting the high-end, intelligent and green development of the manufacturing industry, highlighting the "main position" of manufacturing enterprises, emphasizing the "professional strength" of industry associations, bidding service agencies, supply chain solution service providers, platform enterprises, etc., from strengthening the multi-dimensional coordination of enterprise supply chains, realizing lean enterprise supply chain management, accelerating the digital transformation of enterprise supply chains, improving the green supply chain system of enterprises, and building a global supply chain network of enterprises. Six directions to improve the resilience and security level of the supply chain of enterprises, guide manufacturing enterprises to improve the level of supply chain management, and formulate the "Reference Index System for the Supply Chain Management Level of Manufacturing Enterprises" for reference.

04 The first domestic construction machinery industry legislation is about to be introduced

On June 27, the 23rd meeting of the Standing Committee of the 16th People's Congress of Changsha City conducted a preliminary review of the "Regulations on Promoting the Development of Construction Machinery Industry in Changsha City (Draft)". At present, China has not yet introduced the relevant upper law in the field of construction machinery, Changsha through industrial legislation to boost enterprise confidence, optimize the industrial chain, stimulate internal vitality, solidify the cluster experience, to promote the high-quality development of the construction machinery industry, enhance industrial innovation capabilities, industrial chain resilience and industrial international competitiveness is of great significance. At present, the "Changsha City Regulations on Promoting the Development of Construction Machinery Industry (Draft)" is widely soliciting amendments from all walks of life, and will become the country's first local regulation to promote the development of the construction machinery industry.

2. Industry dynamics

01 Industry revenue and profit both declined, and overseas sales increased slightly

Since March, under the influence of factors such as the decline in domestic real estate infrastructure investment and domestic sales, the market performance of many construction machinery products has been sluggish, and the sales of excavators, various cranes, industrial vehicles, pavers and other nearly half of the products have experienced a continuous decline. According to the data of the Statistics and Information Work Department of the China Machinery Federation, among the 14 sub-industries of the machinery industry, 10 sub-industries achieved revenue growth, 7 sub-industries achieved profit growth, and the operating income and total profit of the construction machinery industry decreased year-on-year. From the perspective of overseas markets, the export trade volume increased slightly. From January to May 2024, the import and export trade volume of China's construction machinery was 22.292 billion US dollars, a year-on-year increase of 2.06%. Among them: imports were 1.1 billion US dollars, a year-on-year increase of 0.83%; The export value was 21.193 billion US dollars, a year-on-year increase of 2.13%.

02 The 2024 Global Top 50 Construction Machinery Manufacturers list was released

On June 12, the "2024 Global Top 50 Construction Machinery Manufacturers List" was officially released, and the total sales of the top 50 construction machinery companies reached 241.922 billion US dollars. United States, Japan and China accounted for the highest market share, reaching 29%, 21% and 17% respectively. The largest number of Chinese companies on the list, 13, namely: XCMG, Sany Heavy Industry, Zoomlion, Liugong Machinery, Lingong Heavy Machinery, Railway Construction Heavy Industry, Shantui Co., Ltd., Longgong, Zhejiang Dingli, Tongli Heavy Industry, Sunward Intelligence, Xingbang Intelligence and North Co., Ltd., 13 companies with sales of a total of 41.826 billion US dollars, accounting for 17.3% of the global construction machinery market share. Among them, Chinese enterprises XCMG, Sany Heavy Industry and Zoomlion continue to rank among the top 10 in the world, ranking fourth, seventh and tenth respectively. Sany Heavy Industry, Zoomlion, Railway Construction Heavy Industry, Sunward Intelligence, and Xingbang Intelligent have sales of 19.456 billion US dollars, accounting for 46.5% of the domestic construction machinery market share and 8% of the global construction machinery market share.

03 In the first quarter, half of the major listed companies achieved revenue and profit growth

According to the data disclosed by major construction machinery listed companies, fifty percent of enterprises have achieved double growth in revenue and profit, and nine companies such as XCMG Machinery, Sany Heavy Industry, Zoomlion and Liugong Machinery have achieved net profit growth. Among them, Liugong's net profit increased by 58%, the highest in the industry; XCMG machinery's net profit was as high as 1.6 billion yuan, a year-on-year increase of 5.06%; Sany Heavy Industry continued to increase profits but did not increase revenue, with operating income falling slightly by 0.73% and net profit increasing by 4.21% year-on-year; Zoomlion's operating income and net profit increased by more than 10% year-on-year, and the gross profit margin increased to 28.65%; China Railway Construction Heavy Industry achieved revenue of 2.395 billion yuan, an increase of 1.25% year-on-year, and net profit decreased by 11.45% year-on-year; Sunward's operating income and net profit both declined, of which the operating income was 1.662 billion yuan, down 6.87% year-on-year, and the net profit was 21 million yuan, down 31.49% year-on-year.

04 The 8th China-Eurasia Expo Equipment Manufacturing Industry Matchmaking Conference was held

On June 28, the 8th China-Eurasia Expo Equipment Manufacturing Industry Matchmaking Conference was held at the Xinjiang International Convention and Exhibition Center. At the matchmaking meeting, the relevant persons in charge of China Railway Construction Heavy Industry, Xinjiang Bayi Iron and Steel, Xiamen Engineering Machinery, Changsha Construction Machinery Industry Association, Beijing Huinong, Shenyang Shunda Heavy Mine, XCMG Group and other enterprises promoted enterprise development, scientific and technological innovation and highlight products. In 2023, the industrial scale of Changsha's construction machinery cluster will exceed 220 billion yuan, ranking first in the country for 14 consecutive years. At present, Changsha construction machinery industry cluster has developed into an open ecosystem rooted in Changsha, serving the entire Hunan and even the whole country, and hopes to take this conference as an opportunity to conduct in-depth exchanges with local enterprises and industry representatives, explore cooperation opportunities, and promote the cooperation and development of both sides in the field of construction machinery.

05 The 5th Luxiang Provincial Construction Machinery Development Cooperation and Exchange Conference was held

On June 26, the "2024 (Fifth) Luxiang Province Construction Machinery Development Cooperation and Exchange Conference" was held at the Jinan Yellow River International Convention and Exhibition Center. With the theme of "Towards the New, to the Green, to the Intelligent, and to Promote High-quality Development", the conference aims to strengthen the exchange and cooperation of the construction machinery industry chain in Shandong and Hunan provinces, and provide a platform for the construction machinery industry chain enterprises in the two provinces to show themselves, expand the market and seek cooperation, so as to promote the supporting cooperation of the construction machinery host and parts enterprises in the two provinces, give full play to the advantages of the domestic super-large-scale market, make up for the shortcomings of the industrial chain and supply chain, maintain the safety of the industrial chain and supply chain, and improve the international competitiveness and industrial development level of the construction machinery industry in the two provinces.

3. Regional development

01 The catalogue of advantageous products of advantageous industries and enterprises in Hunan Province was released

On April 28 and June 27, the Hunan Provincial Department of Industry and Information Technology successively released the first batch and the second batch of the catalogue of advantageous products of advantageous enterprises in advantageous industries in Hunan Province. In the field of construction machinery, hundreds of high-quality products of Sany Group, Zoomlion, Railway Construction Heavy Industry, Sunward Intelligence, Xingbang Intelligence, Shenyi Precision, Black King Kong, Tianhe Drilling Tools, Wanxin Seiko, Fangyuan Rotation, Ruijie Machinery and other complete machine enterprises and supporting enterprises were selected into the catalog.

02 Hunan's first "construction machinery industry" data assets were completed

A few days ago, Hunan Machinery Home Information Technology Co., Ltd., an enterprise in Xiangjiang New Area, Hunan Province, used 41 risk factors such as the performance parameters of construction machinery and the habits of operators to generate industry models using AI machine learning algorithms, and successfully put them into the data trading market, becoming the first single data asset in the construction machinery industry in the province. At present, the data product accommodates nearly 600,000 construction machinery industry users, more than 300,000 sets of construction machinery equipment and tens of millions of user behavior data. Since it was put on the market in June, it has generated economic benefits of more than one million yuan. This data product is used in construction machinery property insurance, which can provide insurance companies with a reference basis for premium pricing. The insurance company can judge the risk level of the device based on this, and the risk identification and screening of the product can reduce the compensation cost for the insurance company by nearly 20%. At the same time, low-risk industry users can enjoy lower-cost insurance products, thereby reducing the cost of daily equipment operation, enhancing the risk awareness of industry owners, and reducing the loss of personnel and property.

03 Changsha re-demarcated more than 30 no-discharge zones, prohibiting the use of non-road mobile machinery in China II and below

From June 30 this year, Changsha will implement the newly demarcated prohibition of the use of high-emission non-road mobile machinery area (i.e., low-emission area) range, compared with the previous low-emission area increased Liuyang City, Ningxiang City and other related areas, and according to the Changsha regional planning of the relevant regional names have been adjusted accordingly. The scope of prohibition of the use of high-emission non-road mobile machinery is: Hunan Xiangjiang New District, Furong District, Tianxin District, Kaifu District, Yuhua District, Wangcheng District Dingziwan Street, Gaotangling Street (excluding Xinkang District), Dazehu Street, Moon Island Street, Baishazhou Street, Wushan Street, Changsha County Xingsha Street, Xianglong Street, Quantang Street, Lili Street, Changlong Street, Liuyang City West Ring Road (formerly Pingshui Road), Northwest Ring Road, Li Tan Road, Jincheng Avenue, Liuyang River Road, Liuqiao, Tianma Road, Jinsha Road Enclosed Area, Ningxiang High-tech Zone, Ningxiang Economic Development Zone, and Ningxiang Zhanqian Road, Kangning Road, Xuefu Road, 319 National Highway, Second Ring South Road, Shaoshan Road, Chuangye Road Enclosed Area. Non-road mobile machinery performing emergency, rescue, emergency repair and other tasks are not subject to the above measures.

04 The dynamics of major construction machinery enterprises in Changsha

Sany Group: Sany Heavy Industry is on the list of "A-share Beautiful 50 Going to Sea", ranking third, and ranking first in the construction machinery industry. The "Key Technologies of Shanghai Tower Project" project completed by Sany won the second prize of the National Science and Technology Progress Award. The Sany 408P electric mixer truck equipped with Haixing Intelligent Driving Advanced Driver Assistance System (ADAS) is the first to pass the actual vehicle test and certification of five regulations in the new GSR of the European Union, and is the first electric engineering vehicle product in China to obtain the latest WVTA certificate, marking that the Sany electric mixer truck has obtained the latest market access license of EU member states. Saudi Global Ports (SGP) and Sany Offshore held a signing ceremony for 80 electric container trucks, worth US$1.87 billion, which is currently the world's largest single electric container truck order. Sany Heavy Industry invested in the establishment of a new company, whose business scope includes charging pile sales, integrated circuit sales, battery sales, energy storage technology services, etc., which is wholly owned by Sany Lithium Energy Co., Ltd. Sany Group and Baosteel Co., Ltd. held the signing ceremony of the strategic cooperation deepening agreement and the unveiling ceremony of the joint laboratory at the headquarters of Changsha Sany Group.

Zoomlion: Zoomlion has been listed on the 2024 "China's 500 Most Valuable Brands" for the 21st consecutive time with a brand value of 125.671 billion yuan, a significant increase of 16.508 billion yuan compared with last year, demonstrating its strong brand strength and strong development momentum. Zoomlion plans to rank first in the "2023 Dividend List of Hunan A-share Listed Companies" with a cash dividend amount of 2.777 billion yuan, demonstrating its responsibility to return shareholders and enhance investors' sense of gain. Zoomlion ranked 30th in the "2023 Top 500 Chinese Enterprises in Patent Strength List", ranking first in the industry. Zoomlion brought more than 30 products in 7 categories to the KOMATEK exhibition in Turkey. Zoomlion Intelligent High-speed Machine officially released a new generation of distributed drive electro-hydraulic integrated control technology, which is not only a new major breakthrough in the electro-hydraulic control technology of the boom aerial work platform, but also injects strong new impetus into the green development of the global high-speed machine industry. Zoomlion Malaysia Kuching branch opened, which is the fifth branch of Zoomlion in Malaysia.

China Railway Construction Heavy Industry: China Railway Construction Heavy Industry Co., Ltd.'s super-large diameter shaft boring machine and series products were selected as one of the top ten typical cases of patent industrialization issued by the State Intellectual Property Office, and the patented technology products have been widely used in the construction of shaft projects in the fields of transportation, municipal administration and national defense, with sales of more than 8 billion yuan. Since the beginning of this year, China Railway Construction Heavy Industry has obtained nearly 300 new patents, an increase of 13.9% over the same period last year. The State-owned Assets Supervision and Administration Commission of the State Council conducted a special assessment of the progress and effectiveness of the reform of 349 "scientific reform enterprises" and 303 "double hundred enterprises" affiliated to central enterprises in 2023.

Sunward: With the theme of "New Energy and New Forces", Sunward successfully held an online promotion meeting for electric excavators in Changsha, Hunan Province on June 26, with Changsha, Wuhan and Hangzhou linked, attracting customers from all over the world to watch online, with as many as 70,000 clicks. Up to now, Sunward Intelligent Excavator has successively launched SWE10FE, 20FE, 60FE, 215FE and other types of electric excavators. The project of "Digital Prototype and Twin Technology Research of Rotary Drilling Rig" led by Sunward Intelligence has successfully passed the acceptance of the top ten technical research projects in Hunan Province organized by experts from the Hunan Provincial Department of Science and Technology.

Xingbang Intelligence: Access International magazine, a subsidiary of KHL Group in United Kingdom, released the list of "Top 20 Global Aerial Work Machinery Enterprises in 2023" (Access M20), and Xingbang Intelligence once again entered the top 10 in the world with its excellent market performance and high-quality development in recent years. On May 7, the Brazil subsidiary of Xingbang Intelligent was officially opened. This is an important milestone for Xingbang Intelligence in the South American market. On April 24th, the opening ceremony of the Middle East subsidiary of Xingbang Intelligent was held in Dubai, and the establishment of the Middle East subsidiary is an important strategic layout of Xingbang in emerging markets.

4. Thematic information

01 Go green

Caterpillar announced the launch of its new "Path to Sustainability" education program designed to support customers in the mining, quarry and aggregates industries in their energy transition. The four-year program will provide participants with comprehensive and diverse learning opportunities, energy transition project proposals, and other resources related to access to sustainable products. XCMG's world's first mining hybrid excavator XE650GK HEV officially rolled off the production line. Liugong loaders sold more than 1,000 units overseas in a single month, of which more than 100 electric loaders were exported in a single month, and at the same time, Liugong electric loaders rolled off the assembly line for the 600th unit in a single month. Yuchai Heavy Industry Co., Ltd. held a global launch conference for new energy products, and launched five new pure electric construction machinery products, including the S35 Max, the world's longest battery life, and the S150, the largest tonnage electric skid steer loader in China. Taizhong's first 160-ton new energy wide-body vehicle was successfully delivered to users. Xiamen Engineering Co., Ltd. and Sunward Special Equipment Co., Ltd. jointly held a strategic cooperation agreement at the headquarters of Changsha Sunward Intelligence, and the two sides said that they would jointly make positive contributions to the dual carbon goals and the national strategy of smart mine construction.

02 Internationalization

XCMG down-the-hole drilling rigs officially entered Africa for the first time, injecting new impetus into the development of local open-pit mine resources. Hangcha Group has set up a wholly-owned subsidiary, Hangcha Indonesia Co., Ltd., in Indonesia, with a registered capital of 2 million US dollars, and its business scope includes sales and service of forklifts, tractors, intelligent industrial vehicles, aerial work vehicles, material handling machinery and equipment, storage equipment and their spare parts. SDLG specializes in developing high-quality products that meet the "EU CE" standards for the local market in response to the EU CE standards implemented in the Turkey market, as well as the differences in engineering construction and environmental factors. Tongli Heavy Industry TLD125 mining vehicle crossed the ocean and landed in Ecuador metal mines, becoming a new process for domestic mining vehicles to enter the high-end market in South America. Changsha Construction Machinery Industry Association signed a strategic cooperation agreement with the Hunan Chamber of Commerce in Germany, aiming to strengthen exchanges and cooperation between the two places in the field of construction machinery and jointly promote industrial development.

03 Aftermarket

LiuGong Europe launched an innovative spare parts business model, providing spare parts delivery services with a new spare parts pricing and discount system, which increased the on-time delivery rate of spare parts from 68% to 94%, and the sales revenue of spare parts increased by about 70% year-on-year, providing customers with more high-quality and efficient spare parts services. Changsha Construction Machinery Industry Association and Kazakhstan Association of Consulting and Trading Companies signed a strategic cooperation agreement, the two sides will focus on the export of construction machinery remanufacturing (second-hand) equipment, strengthen mutual recognition of standards, economic and trade exchanges, and promote more convenient trade processes. The Market Supervision Bureaus of Xiangqiong and Xiangqiong Provinces jointly approved the issuance of the local standard "General Technical Requirements for the Maintenance and Remanufacturing of Used Mobile Phones for Construction Machinery Exports", and the two provinces jointly approved and reviewed the project, numbered and jointly issued by each province, and officially implemented on May 26, 2024. The 2024 China (Changsha) Construction Machinery Remanufacturing (Second-Hand) Equipment Economic and Trade Matchmaking Conference (Kenya Station) was successfully held, and the Kenya Hunan Chamber of Commerce and the Hunan Construction Machinery Second-hand Equipment Export Industry Alliance signed a Kenya Construction Machinery Remanufacturing (Second-hand) Equipment Trade Cooperation Project.

5. Views of this issue

01 The traditional market is close to saturation, and the potential market size of the aftermarket is huge

Since the domestic market of construction machinery has entered a downward cycle, the sales of new machines are sluggish, and the number of major products of China's construction machinery has exceeded 10 million units, and the huge market ownership has given birth to and further promoted the development of the construction machinery market. Construction machinery aftermarket refers to the equipment after the sale, around the use of equipment in the process of a variety of derivative services, it covers the equipment from the sale to scrap in the process, around the equipment after-sales service and use of customer needs of a variety of follow-up services, resulting in a series of trading activities. The construction machinery aftermarket mainly includes six parts: equipment repair and maintenance, spare parts sales and replacement, second-hand mobile phone trading, equipment leasing, remanufacturing and various financial, talent, exhibition and other services around the aftermarket.

In the mature foreign construction machinery market, the sales profit of the whole machine accounts for about 30% of the overall profit, and the remaining 70% of the profit mainly comes from the aftermarket. On the contrary, domestic brands in order to compete with foreign brands for market share of the whole machine, took the initiative to give up the aftermarket, launched the "buy the whole machine, send accessories, lifelong free service" model, the result is that all brands of China's construction machinery market are difficult to charge, at the same time, China's construction machinery parts manufacturers, suppliers and after-sales warranty services are gradually replaced by lower prices, higher flexibility of small and medium-sized enterprises, construction machinery industry after market fragmentation is obvious. Under the existing market competition pattern, the development of the aftermarket of China's construction machinery industry is difficult to reduce profit margins again, grab the market at low prices, and the profits of the aftermarket business are low. Compared with mature markets such as Europe and the United States, there is still a gap in the development level of China's construction machinery aftermarket, but in the rapid catch-up, this also means that the domestic market has a large space for development and potential to be tapped, and more profit space will be transferred to the service field. According to the survey data of China Construction Machinery Industry Association, the whole machine sales business contributes an average of 64% of the operating profit to the agents, and the aftermarket business profit accounts for 36%, including the accessories sales business contributes an average of 19.9% of the operating profit to the agent group; The warranty service contributed an average of 9.1% of the operating profit to the agent group, and the second-hand mobile phone sales business was in a loss-making state; Operating leases contribute an average of 3.9% of operating profit to the agent group; Out-of-warranty service and other maintenance services contributed an average of 3.2% of operating profit to the dealer group; Financial services and other businesses contribute an average of 0.9% of operating profit to the agent community.

02 Some subjects are not clear about the concept of after-market, and they have gone into a misunderstanding

At present, there are still some enterprises in the industry that do not have a clear understanding of the concept and coverage of the aftermarket, and they have not paid enough attention to the concept. Manufacturers and agents in the industry, in the past many years, basically take the service as an auxiliary means of the whole machine sales, and the main service is also the service during the warranty period of the whole machine, and the maintenance and service outside the warranty period can create profits for the enterprise lack of complete understanding and sufficient attention, resulting in a high customer churn rate outside the warranty period. In particular, there are still many obstacles in the field of remanufacturing, which is manifested in the fact that industry enterprises do not have a clear understanding of remanufacturing, and confuse remanufacturing with refurbishment and modification; In the technical field of remanufacturing, there is a lack of core technology and insufficient product design capabilities; Policies, laws and regulations, operating rules, and evaluation standards for remanufacturing have yet to be introduced and further improved.

03 Hunan has the basic advantages and urgent needs for the development of construction machinery aftermarket

Hunan is the country's first, the world's third construction machinery industry agglomeration, in the face of economic downturn, industry cyclical adjustment, the aftermarket has become an important direction for Hunan construction machinery market to continue to maintain industrial competitiveness. First, it has basic advantages. Five companies have entered the "Top 50 Global Construction Machinery Manufacturers", and it is the world's third largest construction machinery industry cluster after Illinois United States and Japan Tokyo. The total assets, operating income and total profits of large-scale enterprises in Changsha construction machinery cluster have ranked first in the country for 14 consecutive years; It has more than 20 overseas R&D and production bases, more than 100 overseas offices and spare parts warehouses, and its products are sold to more than 180 countries and regions around the world. It has more than 20 national and more than 100 provincial innovation platforms, and the variety of construction machinery products accounts for 70% of the country. All these will lay a solid foundation for the development of the aftermarket. The second is to have a good momentum. Changsha Construction Machinery Industry Association, Hunan Construction Machinery Second-hand Equipment Export Industry Alliance and Hunan Guozhong Zhilian Construction Machinery Research Institute have been established successively. The Changsha area of the free trade zone took the lead in carrying out the export reform of construction machinery remanufacturing equipment, and achieved initial results in the export of construction machinery remanufacturing equipment through a series of measures such as taking test orders, building platforms, and building standards, and has achieved exports of 490 million yuan. Third, there is an urgent need for development. At present, Hunan construction machinery industry is moving towards a world-class advanced manufacturing cluster, but the excess of old kinetic energy, the high proportion of new kinetic energy, the loss of stock, and the difficulty of incremental expansion have become the main factors restricting the development of the industry. The construction machinery aftermarket is less affected by the fluctuations of the macroeconomic cycle, as a special product of the integration of the service industry and the manufacturing industry, its profit margin is relatively high, which has become an important guarantee to promote the sustainable and high-quality development of construction machinery in our province.