How to Seek New Breakthrough in Machinery Industry in 2013

In 2012, China’s machinery industry experienced “ice and fire”. The golden period of rapid growth over the years ended in the year. In 2013, how will the mechanical industry face many challenges?

Wang Ruixiang, president of the China Federation of Machinery Industry, said recently that due to the international financial crisis, China’s machinery industry has experienced an average annual growth rate of over 25% from 2000 to 2011 and entered a period of low to medium growth. In the first 11 months of 2012, the growth rate of the total output value of the machinery industry was only 12.2%, which was about 13% lower than last year. It is expected that this increase will be 10%-12% in 2013.

The machinery industry is a basic strategic industry for the national economy, accounting for about 20% of China's total industrial output. It is understood that in the 12 industrial sectors, the growth rate of the industrial added value of the machinery industry had ranked first for many years in a row. In 2012, the ranking dropped to three places after the countdown.

"This has never happened before," said Cai Weici, executive vice president of China Machinery Industry Federation.

When analyzing the external factors, experts pointed out that the deep-seated impact of the international financial crisis has continued to show, international trade protectionism has risen, and the global industrial competition has become fiercer. The developed countries and emerging economies have introduced and implemented revitalizing real economic policies and pushed forward again. Industrialization strategy is a double attack on China's machinery industry after its formation.

In China, after rapid development in previous years, the production capacity of the machinery industry has been over-expanded and the market environment has deteriorated. Although the total demand has increased year by year, it is far behind the increase in supply capacity and the homogenization competition has become fiercer. The long-term constraints on the development of the industry, the product quality is not high, the key core technology subject to the people, the level of industrial management, lack of well-known brands, extensive development and other contradictions, has made the industry transformation and upgrading without delay.

Faced with multiple challenges, the machinery industry seeks breakthroughs, enterprises accurately judge the market, work hard, increase structural adjustments, and increase technological innovation. A number of world-class top-level equipment come out one after another. As a leading enterprise in China's machinery industry, China Machinery Industry Group achieved operating revenue of 213.4 billion yuan in 2012, an increase of 11% over the same period of last year, with a year-on-year growth of 11%. It also actively explored the international market, pointing out that it should be achieved on a 2012 basis and by 2015. The product exports doubled.

“In the future, the overall business environment will remain severe, and domestic demand and export will not significantly warm up. The pressure on the market to adjust and upgrade the structure will not be weakened. The overall situation remains complicated and full of variables.” Ren Hongbin, Chairman of China National Machinery Industry Corporation The Group expressed at the 2013 work meeting.

Under the complicated background, China's machinery industry is in urgent need of accelerating the transformation and upgrading, and developing to the high-end links of the global industrial chain and value chain. Enterprises must strengthen management, actively attack high-end fields, lay a solid foundation for development, attach importance to innovation-driven, and accelerate structural adjustment and upgrading.

At the same time, experts are still optimistic about the industry's development prospects. "It is normal for the machinery industry to grow too fast in recent years. It is normal for the growth rate to fall properly. From the structural adjustment point of view, there are still a lot of bright colors that are exciting." Cai Weici said. According to Ren Hongbin, the machinery industry still faces many favorable conditions: economic globalization and accelerated urbanization bring opportunities, and the domestic market has room for growth. China has already and will successively introduce a series of solid economic development policies, including the machinery industry.

"If the market competition does not advance, it will retreat." It is understood that in the future, China will focus on industries including machinery manufacturing and automobiles, further promote the merger and reorganization of advantageous companies, and increase industrial concentration. This is a good drug to curb excess production capacity, and it is also an opportunity for the industry to accelerate structural adjustment and transformation.