The valve industry has seen a decline in growth

In the general machinery industry in China, there are more than 4,700 enterprises above designated size. From January to March this year, the general machinery industry completed an industrial output value of 1,681.140 billion yuan, a year-on-year increase of 19.45%, and the growth rate dropped by 12.40 percentage points from the same period of last year.

Slower industry growth rate By industry, the growth rate of pumps, vacuum equipment, valves and other industries exceeds the average speed of the general machinery industry. In the pump and vacuum equipment industry, the output value was 36.3 billion yuan, a year-on-year increase of 20.4%; the output value of the valve industry was 43.6 billion yuan, an increase of 22.2% year-on-year; the output of other general-purpose equipment industries was 24.2 billion yuan, a year-on-year increase of 23.5%.

The production and production of the six major products in the industry are unevenly hot and cold. The output growth of the valve is the best. From January to March, the output of 798 valve companies was 1.39 million sets, an increase rate of 19.5%; the pump industry was 680 enterprises, and the output of finished products was 19.8 million sets, which was slightly lower than the same period of last year. 1.9%; 191 wind turbine enterprises, completed production of 4.17 million units, a large decline in output, -13.9%.

Zhang Yubao, deputy chairman and secretary-general of the China General Machinery Industry Association, said that during the “Eleventh Five-Year Plan” period, China’s national economy has experienced rapid development, which has also led to the progress of the equipment industry. However, judging from the current situation of the equipment industry, due to the expansion of previous years, the current industry capacity has begun to appear surplus phenomenon, the future growth rate is expected to slow down. For the general machinery industry, it has also experienced such a period of rapid development. A few years ago, general machinery industry enterprises seized the favorable opportunity for market development, and different types of companies are expanding. State-owned enterprises withdrew from urban areas and used land replacement to upgrade equipment, expand production, and expand production capacity. Private enterprises completed their original accumulation before the 10th Five-Year Plan and began their land expansion during the 11th Five-Year Plan period. According to statistics, the number of companies in the general machinery industry above the current scale has increased to more than 4,700. The situation at home and abroad during the “12th Five-Year Plan” period and the situation in the industry are obviously different from those in the past. It would be very difficult for the industry to achieve the growth rate like “Eleventh Five-Year Plan”. In addition, from the import and export of the general machinery industry, the total import and export volume from January to March was 7.6 billion U.S. dollars, a year-on-year increase of 3.3%. The surplus of imports and exports was 480 million U.S. dollars, with a surplus of 665 million U.S. dollars over the same period of last year. Among them, US$4.05 billion was exported, up 12.6%, and the growth rate was 11% lower than last year. Imports were declining. Imports totaled US$3.57 billion, up 5.5% year-on-year, and the growth rate dropped 27.7 percentage points from the same period of last year. Zhang Yubao said that although the total amount of import and export of the general machinery industry has reached an annual amount of more than 10 billion US dollars, China’s exports are mainly low-end products, causing the price war of these products to extend from domestic to foreign countries.

Will continue to grow steadily According to Zhang Yubao, the general machinery industry has a wide range of applications involving all areas of the national economy and belongs to an industry where the “East does not shine brightly”. Regardless of the overall economic environment, the development speed of the general machinery industry will be relatively stable. From the point of view of the metallurgical demand market, China's current crude steel production is far from surplus, and it is not expected to build a large-scale steel plant in the near future. Therefore, in the metallurgical industry, general-purpose mechanical products need to develop environmental protection, energy saving, green manufacturing these market demand products. From the perspective of the power industry, although the development of the national economy as a whole is still lack of electricity, the period of large-scale development of thermal power is nearing completion, and the time for the development of hydropower, wind power, and nuclear power will come. Thermal power has always been a major application field for general machinery products. The weakening of the market for thermal power demand will certainly have a great impact on the general machinery industry of petrochemicals, and companies need to take timely response measures. In addition, China's dependence on oil resources is relatively high, and the petrochemical industry market will have a steady increase in the general machinery industry.

Qian Jiaxiang, deputy secretary-general of the China General Machinery Industry Association and secretary general of the Compressors Association, said in an interview with reporters that although the overall growth rate of the compressor industry is also declining, the decline rate is not large, and some industries The demand is still growing.

The demand for compressors in the energy industry has not only declined since the beginning of this year, but has risen, such as natural gas,

CBM compressor demand growth. At the same time, the demand for the coal mining industry and construction machinery industry is also growing. Zhang Yubao reminded companies that it is time to slow down and improve the quality of economic operations. China is now the second largest economy in the world, but it consumes more energy. To create the same economic scale, China has to pay more than the United States and Japan. After two years of economic ups and downs, industry companies have now returned to calm. At present, industry companies have fully realized the complex market conditions, the investment is very stable, and they no longer pursue excessive capacity expansion. This year, the general machinery industry will have some growth, but it will not experience rapid growth in previous years. The industry growth rate for this year is forecast to be 15% to 20%.

Stay alert and confident Zhang Yubao said that there are several issues in the industry that need attention:

First, the industry should remain vigilant. Now many foreign companies are affected by the financial crisis and debt crisis, and the market is very sluggish. The Chinese market is relatively stable. As a result, more and more foreign products have entered the Chinese market, including not only the former high-end products, but also some low-end products of foreign companies. Foreign brands competed with domestic companies in terms of quality, brand, and service, which intensified the pressure of competition in the industry.

Second, the next step in the development of the enterprise. Starting from the second half of last year, the ordering and production of enterprises have become two-level differentiation. Some enterprises with good technology and high levels have not only simply made products, but have begun to take the road of service manufacturing. For example, Shaanxi Drum Group convened a celebration of over 10 billion yuan in market orders at the end of last year. This is exactly the result of their business philosophy of service, technology, and brand. At present, there is fierce competition in the middle and low-end industries, and the market capacity of the products is limited. Some small and medium-sized enterprises (SMEs) are mainly export-oriented and also focus on mid-to-low-end products. Due to the sluggish international market, these enterprises are turning back to the domestic market. Vicious competition and two levels of differentiation in the domestic market.

For the future development of the industry, Qian Jiaxiang expressed confidence: It is estimated that in June and July of this year will reach the bottom of the industry, the industry situation is expected to rebound in the second half. This is mainly due to the following reasons. First of all, the party's "eighteenth party" is about to be held and there will be some good news at the policy level. Secondly, some major national construction projects have started since the beginning of this year, such as coal chemical industry, petrochemical industry, high-speed rail, and nuclear power. These projects have already been included in the “Twelfth Five-Year Plan” and are currently only temporarily deferred. In the following two years, the country will also carry out construction.

Qian Jiaxiang analyzed that from the perspective of the "12th Five-Year Plan" in the next few years, first, China's urbanization rate has not yet reached the international level, and there is still much room for future development. Second, at present, various local governments are stepping up the construction of affordable housing, which will also stimulate the demand for the industry market. Third, all small and medium-sized cities are engaged in the construction of metropolises, and industrial parks are being built in coastal areas. This will also generate greater market demand. However, he cautioned that the determination of new investment projects needs careful consideration. In the early stage, more research should be conducted, and projects must be selected accurately. Do not duplicate construction. The market capacity of general machinery is relatively fixed, and the production target cannot be determined arbitrarily. After the national market capacity is determined, the size and area of ​​the park will be determined to avoid a new round of excess capacity.