From 76,737 units in 2008, to 93,018 units in 2009, to 165,804 units in 2010, in just three years after the financial crisis, the sales of excavators grew rapidly like crazy. According to the China Construction Machinery Industry Association statistics, in March 2011, 24 major excavator manufacturers sales of excavators 43,063 units, up 42.92% year-on-year, and then hit a new high monthly sales; 1 ~ March cumulative sales of excavators 74,214 units, an increase of 58.6% year-on-year, the continuation of the high rate of growth in March, the sales hit a record high during the same period of the previous year.

　　China's construction machinery market fire and huge profits, so that other domestic industrial predators “salivating”, the production of liquor Wuliangye Group, shipbuilding Rongsheng Heavy Industry, car Geely Group and other “laymen” have begun to start the excavator project. So many companies pouring into the excavator industry, is the rise of China's excavators a harbinger? Or the beginning of the white-hot market competition?

　　Where the old and new enterprises is the cornerstone of the rising

　　Some analysts believe that in the next few years, there are two trends seem to be irreversible, one is the proportion of local brands will reach 50%; the other is that the excavator will steal part of the market from the loader. These factors express the future of the excavator industry is worth looking forward to. Although overcapacity has begun to emerge, but the imbalance between local brands and foreign brands, still emboldens many local enterprises to invest large sums of money in the field of excavators. At present, although the competition in China's excavator industry has been very fierce, but there are few companies with a market share of more than 10%, and the industry sales rankings are changing every year. This shows that the industry pattern is still very variable, which makes many companies see the hope of entering the game.　　In 2010, in the excavator sales rose rapidly at the same time, the market share of foreign brands appeared to rise slightly, which seems to illustrate a problem - the current role of the local brands in the industry is not strong enough, if properly operated, the impact of the existing pattern is possible. In particular, Foton Leiwo Heavy Industry, Sany Heavy Industry, mountain reconstruction machine and other enterprises, has taken turns to interpret the miracle of industry growth rate, which also provides confidence for new entrants. In addition, the current local enterprises are generally faced with the core supporting parts need to global procurement of the embarrassing situation, which also allows new entrants feel that the barriers are not big, as long as they have enough capital to build and existing enterprises with the difference between the supply chain, it is enough to ensure that their products are not too bad.

　　According to experts, the industry span has not been able to become a new entrant to power excavator industry obstacles. In fact, the industry's existing enterprises in a considerable part of the enterprise itself is not from the manufacture of construction machinery started. If these companies have the production experience of equipment manufacturing, part of the general technology can also be borrowed over, the threshold of entry will fall even lower. This is exactly Rongsheng Group, China National Heavy Duty Truck and other enterprises have the advantage, but also other similar enterprises to enter the excavator industry where the advantage lies. However, this can be the cornerstone of the rise of national brands?

　　Core components constraints on the rise of national brands

　　The essence of market competition is to obtain profits, and the cruel thing is that the manufacturing enterprises in the innovative sales model, reduce business thresholds with a view to performance growth behind the high profits are key components providers to take away the reality.　　At present, hydraulic pumps and hydraulic motors, power shift transmission, wet brake drive axle, slewing bearings, integral multi-way valves and other high-end core parts technology, are in the hands of foreign enterprises. Domestic construction machinery brands use foreign core components, such as diesel engines, more choice of Cummins, Isuzu, etc., hydraulic parts more than the use of Japan Kawasaki, Germany Rexroth, while the gearbox is to choose ZF and other brands. A professional organization has done a survey on this in 2010, the results show that China has to mature in the supporting parts of construction machinery, hydraulic parts accounted for 88% of which high-pressure hydraulic system accounted for 52%, variable hydraulic system accounted for 36%, than the second place in the engine several times higher. What is more worrying is that the current market is the most hot excavator, is the most serious lack of supporting parts in the field, the proportion of blanks as high as 42%, almost twice as high as the second place road maintenance machinery. This means that China's more than 100,000 excavators manufactured in 2010, nearly half of the parts are completely dependent on imports, of which hydraulic parts and occupy the top of the list.

　　According to Hunan Machinery Industry Association statistics, the province above-scale construction machinery enterprises produce host products, parts and other import costs accounted for more than 40% of the manufacturing cost.