Saturday, March 19, 2011

Trends in the Chinese Heavy Truck Market

 Modification China Dump Truck
 
The United States Heavy Truck Manufacturing Industry has been very fortunate because it has been able to sell heavy equipment and heavy trucks to China, which they have used to help build their great infrastructure. They have built over 25,000 miles of highways, floating airports, 10,000 miles worth of rail, the largest dam in the world, and they have some of the most modern cities with the most modern skyscrapers in the world.
There is a lot of construction going on in China, and the modern equipment they have purchased from United States companies, has provided a lot of jobs in many parts of our nation. Everyone is a winner!
However, the Chinese are very smart industrial capitalists, and whereas, that might sound funny because China is a communist nation, they often teach us a thing or two about free-market capitalism, and how it should really work. Due to the over regulation, the labor unions, and the excessive lawsuits that companies have to deal with in the United States, it's going to be hard to compete with China as they start building their own heavy trucks and equipment.

 Modification China Dump Truck


According to Industry Week for instance; "China's Anhui Jianghuai Automobile Co said Sept. 29 it plans to set up a two billion yuan (US$292.8 million) joint venture with the truck unit of Caterpillar Inc. Jianghuai Automotive will also develop new products with NC2 Global LLC, a tie-up between Caterpillar and truck maker Navistar International Corp, the Chinese firm said," and meanwhile "China's biggest auto maker SAIC Motor and Iveco, Italian auto giant Fiat's truck and engine manufacturing unit, said they planned to expand their joint venture's product line."

 Modification China Dump Truck

This is indeed, one more industry and sector that the Chinese are going to take by storm. There is no way American companies can compete at the same price point, or produce trucks on that scale with any similar price structure. Therefore, you can expect the heavy truck manufacturing market to go to China. This will be starting in 2010, and by 2018, they will have cornered the market, and the US and European companies will succumb to competitive market forces. Please consider all this.

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