Analysis of Development Situation of Equipment Manufacturing Industry

In the overall development of the industrial economy in 2012, the equipment manufacturing industry is facing more difficulties. Due to the long production cycle and difficulty in adjustment, the equipment industry has not yet emerged from downward pressure. According to statistics from the National Bureau of Statistics, from January to November 2012, the value-added of equipment manufacturing industry increased by 8.2% year-on-year, which was significantly lower than that of all industries above designated size, and the growth rate dropped by 7.2% compared with the same period of last year. Moreover, due to the slowdown in market demand, the number of new orders for the equipment manufacturing industry has shrunk significantly. From the perspective of the China International Machine Co., Ltd.'s key contacts with corporate orders, the cumulative number of new orders signed in 2011 increased by only 6% year-on-year, while the cumulative growth in 2012 has shown a negative growth situation, among which the orders for construction machinery, ships, machine tools, trucks, and power generation equipment declined the most. .

Looking at the development prospects for 2013, the "Report" believes that the equipment industry "opportunities and challenges coexist and the outlook is still not optimistic", but it is also expected that "the overall operation of the equipment industry will be better than this year, and the growth rate of added value will be higher than this year."

On the one hand, 2013 is a crucial year for the deep implementation of industrial transformation and upgrading plans and strategic emerging industries development plans. High-end equipment manufacturing industry will usher in an important period of development opportunities. At the same time, the acceleration of investments in infrastructure such as railways and water conservancy will stimulate the growth of construction machinery and other industries. There will be room for growth in UHV power transmission and transformation equipment in hydropower equipment and power transmission and transformation equipment in power generation equipment.

On the other hand, the improvement in demand is not yet obvious, and the export situation is unlikely to be fundamentally improved. At the same time, China’s equipment manufacturing industry faces problems such as overcapacity of low-to-medium-end products, weak research and development capabilities of high-end products, and weak industrialization capabilities, leading to homogenous competition in the industry. Further aggravating, the United States and other advanced economies in the implementation of the re-industrialization strategy will also export me mechanical and electrical products will form a certain degree of pressure.

By 2020, the two major power grid companies will bid 790 million smart meters, which are calculated on an average of 175 yuan each. China's smart meters have a market capacity of over 100 billion yuan.

“At present, the traditional electric energy meter market has entered a period of moderate growth from a period of rapid growth. The entire industry has become more competitive and the industry’s profit margins have declined. At the same time, the smart grid has injected new vitality into the electric energy meter market and the market is expected to grow substantially.” Wasson Zheng Xiaoping, senior vice president of the group, said.

The world famous market research organization Parker Consulting has predicted that by 2020, China will become the driving force behind the rapid rise of the Asian smart meter market. Predictions are not groundless. China proposed in 2010 that within the next five years, the installation and application of 240 million smart meters will be completed.

In 2015, the accumulated demand exceeds 500 million. China's smart grid has entered the phase of comprehensive construction and has generated a huge market demand for smart meters. By the end of 2011, there were about 41.199 million households nationwide.

It is estimated that by 2015, there will be a total of 451.99 million households across the country. If every household needs to install smart meters, by 2015 there will be a total of 511 million smart meters to be installed nationwide, of which the replacement needs will be 59 million.

In 2011, the State Grid Corporation operated around 340 million households. For full coverage, the State Grid Corporation of China will need to accumulatively bid for 420 million smart meters by 2015.

Among them, 189 million smart meters need to be installed in urban households and 231 million smart meters must be installed in rural households.

As of the end of 2012, the State Grid Corporation of China had accumulatively bid for 184 million smart meters.

Experts predict that the installed number of smart energy meters used in conjunction with the smart grid will reach 760 million by 2013, and by 2020 the smart grid will cover 80% of the world's population. Large-scale global smart grid construction will bring a broader market demand for smart energy meters, and also create good market conditions for the export of smart energy meter manufacturers in China.

Some experts predict that the strong growth trend of smart meters will continue in the next few years, and the export volume of smart meters in China will continue to rise. At present, China's smart meters have the most outstanding export performance in Southeast Asia and the Middle East, and South America will also become a new export growth area. “From the international market, the construction of foreign smart grids has lagged behind. The demand for smart meters has just entered the peak procurement period in 2015 and is complementary to the domestic market.” said the chairman and general manager of Hangzhou Juhua Technology Co., Ltd.