Analysis on the Trade Competitiveness of German Construction Machinery Manufacturing Industry

Analysis on the Trade Competitiveness of German Construction Machinery Manufacturing Industry

Excavator is the main product of the German construction machinery manufacturing industry, it is the most important export of its core products. In 2010, the total amount of German excavator exports amounted to 1.011 billion euros, the total import amount of 463 million euros. According to the Trade Competitiveness Index (TC), the German trade competitiveness index (TC) of the excavator industry is 0.372, indicating that its trade competitiveness is strong.

In the first eight months of 2011, the top five markets for German mining machinery exports were China, France, the United States, South Korea and Sweden, accounting for 9.9%, 8.9%, 8.5%, 7.3% and 5.7%, the top 5 markets are Italy, the Czech Republic, France, Poland and Austria, accounting for 15.2%, 10.9%, 8.0%, 7.4 and 5.6% respectively. China, Korea and the United States are listed in Articles 10, 11 and 14, accounting between 4% to 3%.

From the perspective of intra-industry trade theory, in the vertical integration of investment, especially for China’s trade, showing a significant feature of North-South. That is China’s exports of high value-added products to earn high profits, while imports of low value Products or mature technology products to reduce the cost of production costs. In the first eight months of 2011, the average export price of German mining machinery parts to China was 11.5 thousand euros / tone, and the export value increased by 33.8% year on year. The average import price was 1.3 thousand euros / ton and the import value increased by 48.3% year on year.

In terms of trade with developed countries, the import of mechanical parts is mainly from other countries in the EU. World-class construction machinery manufacturing power, which fully reflects the level of integration of intra-industry trade characteristics, that is, developed countries through trade differences in product transactions, to achieve complementary advantages, strong combination. Such as the first eight months of 2011, imports from Italy, the average unit price of excavation machinery parts of 3.1 euros / ton, exports to the country’s average unit price of 2.7 thousand euros / ton; 2010, imports from the United States average price of 5.4 Thousands of euros / tone, exports of 5.6 kwh / t.

The development of the German construction machinery industry is closely related to other EU members, which fully exploits the inherent advantages of many old industrial powers and then integrates the advantages of German manufacturers relying on their own brand reputation and technology research and development and quality management. Market competitiveness must be significantly improved, to some extent, the quality of the German construction machinery is more of the overall strength of the EU construction machinery manufacturing industry.

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