Pump sales show a U-shaped rebound

Affected by the rainstorm factors in seven provinces and regions in the south of Jiangxi, Hunan and Guizhou, the market demand for pumps has increased significantly. The reporter learned from the industry yesterday that with the arrival of the flood season, the pump sales volume has shown a "U"-type rebound.

Although the economic losses caused by this heavy rain are still unclear. However, according to historical experience, the impact of floods on agriculture, transportation, tourism, and industry is relatively large. However, for most of the disaster-affected industries, whether in the disaster or after the disaster, the pumps are necessary supplies to reduce losses.

Taking Bayannaoer City of Inner Mongolia as an example, due to the continuous rainfall in recent days, the farmland accumulated serious water and many crops fell down. In order to pump farmland rainwater, many farmers went to the city to purchase water pumps. In the case of a large increase in demand, some dealers have made a fortune. "The past 800 yuan or so pumps will sell for 2,000 yuan after rainfall."

An industry insider who sells water pumps said that “weather factors directly affect the sales of pumps. If heavy rains occur, the demand for pumps will increase significantly.”

In the interview with this reporter, Liu Yang of Shanghai Farr Pumps stated that with the gradual implementation of the “steady growth” policy and the combined effects of climate factors, after the Dragon Boat Festival, China’s pump sales in June showed a U-shaped rebound.

According to reports, in the past half of the year, affected by the European debt crisis, domestic real estate regulation and many other factors, water pump valve companies have been in the doldrums, gloomy business conditions.

Judging from the current situation, the sales of pump in the second half will maintain the momentum of recovery.

First of all, agricultural water pumps are becoming areas where demand has grown rapidly in recent years. Since the irrigation and drainage machinery including water pumps began to enter the agricultural machinery subsidy list in September 2009, the subsidies for the competent authorities have continued to increase. China Merchants Securities (Weibo) (11.32, 0.41, 3.76%) Liu Rong estimates that the growth rate of agricultural water pumps in the next few years can reach about 15%.

Second, industrial demand for water pumps is also picking up. Since the third quarter of last year, many railways have been suspended. After experiencing the "during the winter" period of about six months, the construction of railways across the country ushered in ice-breaking and many railway stations quietly resumed work. The resumption of railways will also drive the demand for pump and valve industries, submersible pumps, sewage pumps, fire pumps, circulation pumps and air-conditioning pumps that will be distressed this year.

Third, new industries will become large demand for water pumps. At present, the State Council has issued the “Twelfth Five-Year Plan for Energy-saving and Environmental Protection Industry Development”, and environmental protection is becoming an important industry in China. Among them, the magnetic pump as a non-leakage, pollution-free new environmental protection product developed and produced in recent years is being sought after by the market.