Jiangyin Liugong develops “six changes” strategy to cope with the crisis

In the workshop of Liugong Road Machinery Co., Ltd. located in Yunting, Jiangyin, the row of yellow rollers with a height of only one person is particularly eye-catching. Seeing the “tall and mighty” large rollers, people can’t help but ask: Is there a market for this kind of small rollers? Wu Xiaofeng, the executive deputy general manager of Liugong Machinery, gave a positive answer: Yes! This small double-drum roller is a new product developed by the company, which is specially used for highway maintenance. It not only fills the gap in the domestic market, but also exports to the European and American markets.

The small road roller is a microcosm of Liugong Machinery’s firm confidence and continuous tapping of its own potential in the face of severe macroeconomic challenges. In the past two years, the heavy machinery industry where Liugong Machinery is located has experienced a roller-coaster development of “ice and fire”: after the country introduced the “4 trillion” incentive policy, a large number of infrastructure constructions have been launched. In 2009 and 2010, the company It has experienced rapid development; but signs of market recession suddenly appeared in the first half of last year. So far this year, the company has just completed sales of 180 million yuan, which is less than half of last year’s.

“The more difficult it is, the more you have to withstand the pressure!” The person in charge of the company said that he has never lost confidence in the development of the company, but the key is to come up with effective methods. To this end, Liugong Machinery has introduced the “six changes” strategy to deal with the crisis, tapping its own potential from six aspects: R&D innovation, marketing reform, financial management and control, quality reform, procurement improvement, and human resources. The courage and perseverance of the “post-life” hard work. This is how the new product small road roller stands out, which further expands the company’s product line and opens up new markets.

Inventory is also a problem faced by enterprises. After the market shrinks, a large number of complete machines are backlogged in the warehouse. What should I do? Liugong Machinery created new business opportunities with “marketing reforms”: They set up a leasing company and leased various types of road rollers to engineering companies, and the inventory situation has improved significantly. Wu Xiaofeng also revealed that the company has broken down the inventory task and linked it to the performance and income of each relevant person in charge, “striving to digest 90% of the inventory within 3 months, and reduce various expenses by 30%.”

The person in charge of the company said frankly that it is expected that by the first half of next year, affected by the downturn in the industry, the company will still face greater difficulties in its development. “But we have our own advantages – there is no problem with the capital chain for the time being, the technology and team are the top in the industry, and the production efficiency has always been ahead of domestic competitors…” At present, Liugong Machinery is committed to implementing the “Star Product Creation Plan” . The person in charge of the company said that the more the trough, the more you have to accumulate your own advantages, so that you can seize an advantageous position as the market recovers.

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