Machinery industry integration is the key

Since 2011, the global economy has continued to decline, and the demand for the machinery industry has been weak. As a result, the growth rate of the entire machinery industry has dropped significantly and it has entered a period of moderate growth. Especially in 2012, the downward speed of the machinery industry continued to accelerate, and Chengdu's local machinery manufacturing companies were not spared.

Sichuan Tianma’s performance report showed that in 2011 and 2012, operating income increased by -19.11% and -13.51% year-on-year, net profit increased by -46.95% and -36.55% year-on-year; and Xinzhu shares (002480, stocks) performance report also showed In 2012, operating income increased by -58.55% year-on-year, and net profit increased by -143.09%. Experts believe that technological innovation will be the key to the sustainable development of the machinery industry. Now Chengdu's local machinery manufacturing industry needs to strengthen industry integration.

Into the middle and low growth period

Cai Weici, executive vice president of the China Federation of Machinery Industry, believes that the growth of the machinery industry economy continued its rapid downward trend in 2011. The industry has been undergoing a period of rapid growth of nearly ten years during the 10th and 11th five-year periods. Into the low growth period.

In 2012, China's machinery industry realized a total industrial output value and sales value of 18.41 trillion yuan, 18.04 trillion yuan, an increase of 12.64% and 12.54%, respectively, down 12.42 percentage points and 12.35 percentage points over the same period last year. According to the China Research Institute's "2013-2018 China's Machinery Industry Risk Investment Trends and Investment and Financing Strategy Report," it shows that from the growth rate of production and sales in the past seven years, 2012 is the year in which growth has been slow in recent years. From January to December, the machinery industry in the country collected a total of 76,456 enterprises, including 8,599 loss-making enterprises, an increase of 2,124 over the same period last year.

In an interview with the reporter, Ding Hao, chairman of Chengdu Chengfeng Valve Group, frankly stated: "China's machinery industry is actually at a bottleneck."

This downturn in the industry may bring reshuffle to the industry. “Some markets have a strong control of the company is likely to become the industry leader or even a multinational company in the future. And some companies with lagging development and lack of judgment on the market may be eliminated by mergers and acquisitions.” Ding Wei said.

Industry integration is the key

Chengdu Machinery Association submitted the proposal of “two sessions” in Chengdu regarding the development of chambers of commerce and the development of Chengdu’s machinery manufacturing industry. Chengdu’s existing large-scale machinery manufacturing enterprises numbered 477. In 2012, the output value was 83.2 billion yuan, and profits tax was 8.8 billion yuan. Solve the 36-41 million employment population. Machinery manufacturing has become a pillar industry in Chengdu.

From the data, Chengdu's machinery manufacturing industry is relatively optimistic. However, under the background of the bottleneck in the development of the entire machinery industry, Chengdu's machinery manufacturing industry is also unable to escape its fate. According to the performance report of Sichuan Tianma Co., Ltd., in 2011 and 2012, operating income increased by -19.11% and -13.51% year-on-year, and net profit increased by -46.95% and -36.55% year-on-year. The performance report of Xin Zhu Construction Co., Ltd. also showed that in 2012, operating income increased by -58.55% year-on-year, and net profit increased by -143.09%.

Ding Hao pointed out that the machinery manufacturing enterprises themselves have a small profit margin, and many companies produce low-quality products and rely on large-volume profits. In these enterprises, there are a lot of vicious competitions, especially among small businesses, who often kill each other in the industry and take the initiative to lower prices and suppress each other.

After the "two sessions" in the country, the government has new plans and plans for future economic policies. Under this new situation, the development of the machinery industry also ushered in a new turning point. Chengdu City Federation of Industry and Commerce and Chengdu Machinery Industry Association recently invited Sheng Yi, Vice President of Sichuan Academy of Social Sciences to give a lecture titled "The Future of China's Economy After the Two Conferences and Prospects for the Development of Manufacturing Industry", aiming at making Chengdu Machinery Manufacturing Enterprises even better through lectures. A good grasp of future economic policies, through the interpretation of the machinery industry, Chengdu companies, and regional economic policies, to better guide the company's next investment and development.

Sheng Yi mentioned in the lecture: "Science and technology innovation will be the key to the sustainable development of the machinery industry." Ding Wei also believes: "Now Chengdu's local machinery manufacturing industry must do is to strengthen industry integration, broaden funding channels and reduce the viciousness. Competition will make the industry in a healthy and stable development, and then companies will concentrate on human, material and financial resources to develop themselves."