Grab the development of China's pump industry

As a supplier of parts, pump and valve companies have a lot to do with the development of industries such as real estate, construction, industry, and engineering projects. In recent years, due to factors such as the country’s favorable investment environment and the deepening of intensified infrastructure construction policies, the Chinese pump and valve industry has ushered in opportunities for sustained high growth.

However, the Ministry of Industry and Information Technology (hereinafter referred to as the Ministry of Industry and Information Technology) has recently announced to the public the elimination of backward production capacity in 18 industrial sectors. The steel industry is also listed on the list. Steel, the raw material of pump valves, will face a risk of production cuts, and the pump and valve industry has been greatly affected.

Rising raw material prices, lower profit margins As environmental pressures increase day by day, the highly polluting and energy-intensive steel industry needs to be transformed. However, to a certain extent, the elimination of backward production capacity will also result in production cuts due to restrictions on production capacity. Analysts believe that in the steel industry, a reduction in production will lead to an increase in steel prices in the short term, and this will result in higher costs for the pump and valve industry, leading to short-term price fluctuations in the pump and valve industry.

It is reported that since the beginning of this year, the stainless steel industry has encountered an unprecedented "cold stream", and the output value of many companies has shrunk by at least 60% year-on-year. In order to ensure sales, the pump valve industry can only adjust the market price and reduce the profit margin.

Not only that, from the development status of the pump and valve industry, the development trend of the pump valve industry itself is also facing the risk of eliminating backward production capacity. It is understood that as a basic mechanical part of the pump, compared with the host, the company's initial capital and technical investment to establish a production line is relatively small. Through the market promotion in recent years, the manufacturers of China's pump and valve industry have rapidly increased, the production level has been greatly improved, and the output of pump valves has also increased significantly. However, what is more embarrassing is that small and medium-sized and private pump and valve companies have rapidly increased in this process and account for a large proportion. On the contrary, there are fewer large-sized pump and valve companies, and the brand name of the pump and valve industry is relatively poor, compared to foreign pump valves. Products, China's valve products have poor market competitiveness.

As of the end of 2009, there were 803 franchised and concurrent pump manufacturing enterprises above designated size in China, 889 valve manufacturers and 20,000 small and medium-sized enterprises, resulting in vicious competition such as price wars and shoddy goods. Wasted resources, high-risk operations and other adverse consequences. The valve industry is in urgent need of restructuring and adjustment.

The financial crisis is fierce The survival of the fittest The survival of the fittest The market is shrinking sharply under the impact of the international financial crisis. For steel, construction, and upstream and downstream industries, it is undoubtedly a "cold air", which depends on the development of the pump industry It is also a bad news. However, people in the industry have found that although the financial crisis has caused a certain degree of negative impact on the Chinese pump and valve industry, it has also exposed the internal defects of the industry and has improved under the market economy system.

Not long ago, Wenzhou Fastener Industry Association found in a survey of companies in the industry that the fastener industry with more than 3,000 companies three years ago is now only more than 2,000. All along, low, small, scattered is one of the important features of the fastener industry in Wenzhou. A large part of the family-run enterprises lease private houses for production and rely on price war to occupy a small part of the market. However, in recent years, as raw material prices have been rising all the way, small businesses cannot afford the cost increase. At the same time, with the continuous expansion of Wenzhou City, more and more private houses have been demolished and many small businesses have lost their production sites. The advent of the financial crisis has played a role in fueling the situation. Therefore, most of the nearly 1,000 small companies that have “disappeared” have been integrated into larger enterprises.

Industry insiders pointed out that thanks to the financial crisis, China's pump and valve industry began to implement internal and external wins and elimination of the fittest due to reduced orders and rising raw material prices. Some of the backward production capacity was stripped from the industry, enabling the industry to “go on board” and win better development. space.

The export level needs to be improved. Under the background of the broad domestic sales market of China's pump and valve industry, the export market is slightly "slim." It is understood that the total annual sales of China's pump and valve industry can reach hundreds of billions of yuan, but exports have a negligible ratio. Pump and valve export companies located in Zhejiang, Jiangsu, Shanghai, Sichuan and other places export most of their products. The brand production or low value-added products are the main products, and the export volume is relatively small. The product brands have not been able to form influence in the international market.

In this regard, experts pointed out that the development of the international market is different from the domestic market, the pump valve export companies should have two conditions: First, the export of the product in the selection of materials, testing, product features and delivery time must meet the requirements of the international market; The second is that marketers can accurately understand the international market and pass market demand information to the company quickly and accurately.

It is understood that in 2009, the global valve and pump market demand maintained the level of 2008, industrial valve sales reached 47 billion US dollars. It is expected that market demand will increase by 3% this year. The Chinese market will show strong growth momentum, of which the market for replaceable gate valves for thermal power plants is already twice that of the US market, accounting for more than 30% of the global market. In addition, the global pump sales this year will also maintain the level of 32 billion US dollars last year. Among them, the sales revenue of centrifugal pumps accounts for the largest proportion; the sales revenue of rotary pumps will be slightly higher than that of diaphragm pumps; the sales revenue of circulating pumps will be slightly lower than that of diaphragm pumps. From the perspective of the international environment, although the added value of China’s current pump valve products is relatively low, China’s pump manufacturer only needs to increase its technical R&D efforts and develop high-yield products. The export potential of this market is therefore very large. .