Discussion on Structural Optimization of China's Valve Industry

Due to the increasingly fierce competition in the global valve market, many world-renowned valve manufacturers have shut down their plants in North America, Europe and Japan to China, India, South Korea and Central Europe to reduce valve manufacturing costs and increase sales profits. . With the increase in the development and utilization of oil and natural gas in China, the Chinese valve market has grown significantly, which makes most valve manufacturers pay more attention to building factories in China. As a result, there has been an upsurge in the establishment of foreign valve companies in China. Some companies even have multiple factories in China to shorten the transportation distance and delivery time.

Due to the government's policy of revitalizing the equipment manufacturing industry, strong market demand, and enhanced industry investment, China’s valve output has continued to grow. Valves are products with low profit margins and the market is highly competitive. At present, China's valve industry is a labor-intensive industry, and China's valve industry is still dominated by volume expansion. Although more and more valve products from China are flowing in the international valve market, the right to speak in the international valve market is not in the hands of Chinese companies.

According to statistics, in the first quarter of 2012, the output of China's valves reached 1.395 million tons, an increase of 19.59% over the same period of last year. In the first half of 2012, the output of valves throughout the country reached 330.27 million tons, a year-on-year increase of 15.45%. In June, China produced 641.9 thousand tons of valves, an increase of 7.42% over the same period last year.

Valves are products with low profit margins and the market is highly competitive. At present, China's valve industry is a labor-intensive industry, and China's valve industry is still dominated by volume expansion. Although more and more valve products from China are flowing in the international valve market, the right to speak in the international valve market is not in the hands of Chinese companies. It is understood that there are more than 2,000 valve companies with a certain scale on the market, most of which are located in Jiangsu, Zhejiang and Central Plains. Due to the relatively low technical content of products, the competition is even fiercer.

The shortage of professionals has become a bottleneck restricting the further development of China's valve industry. To solve this problem, it is necessary to strengthen the short-term training of existing employees of the company to improve the existing human resources. At the same time, through the introduction of high-quality professionals in various ways to enhance the intellectual capital of China's valve industry.

For the long-term development of China's valve industry, it is necessary to adjust and optimize the industrial structure. We must continue to give full play to the advantages of the traditional valve industry, and we must vigorously develop knowledge, technology-intensive industries and emerging industries to promote the upgrading of the valve industry. Only in this way can we shorten the gap between China's valve industry and developed countries as soon as possible.