General machinery industry growth slows down to medium- and low-speed operation

In 2014, facing the complicated and volatile market environment at home and abroad and the new normal of China's economic development, the overall development of the general machinery industry has achieved good results. According to data provided by the China General Machinery Industry Association, by the end of 2014, there were 5,309 large-scale enterprises in the general machinery industry in China, including 82 large-scale enterprises, 639 medium-sized enterprises, 4588 small-scale enterprises, and 152 state-owned and state-controlled enterprises. There are 108 collective holding companies, 195 Hong Kong, Macao and Taiwan holding companies, 4,165 private enterprises, 532 foreign-funded enterprises, and 157 other companies; the total assets of the industry are 765 billion yuan; the main business income of the whole year is 938.4 billion yuan; The value of 102 billion yuan; the total profit of 63.1 billion yuan.

Medium and low speed operation

In 2014, the development speed of the general machinery industry slowed down significantly, and the growth rate of the economic operation of the industry showed high, low, steady, and steady, medium, and low speeds.

According to the China General Machinery Industry Association, the industrial product output in 2014 grew modestly. The statistics of the output of six kinds of products have increased year-on-year in 2014. Among them, the output of pump products increased by 5.67% year-on-year, the output of fan products increased by 6.82%, the output of compressor products increased by 6.6% year-on-year, of which (more than 85% were refrigeration and air-conditioning compressors), the output of valve products increased by 0.05% year-on-year, gas separation and liquefaction equipment Product output increased by 1.81% year-on-year, and output of reducer products increased by 2.67% year-on-year.

According to statistics of the association's statistics on the ex-factory prices of 9 products in the general machinery industry, the cumulative ex-factory price index for 4 products is running at over 100%, including 101.03% of blowers, 100.06% of compressors, 100.39% of vacuum pumps, and 100.05% of gas separation and liquefaction equipment. The ex-factory price of products tends to be stable and rational, mainly reflected in the products whose price index was above 100 in the previous year, and the price index in 2014 has dropped somewhat. In products whose price index was below 100 in the previous year, the price index in 2014 has increased. The prices of valves, power pumps, positive displacement pumps, and centrifugal fans all operated at low levels throughout the year, and the volume pump prices were operating at low levels for two years. Intense market price competition still exists.

From the main business income and total profit data of the industry, the year-on-year growth slowed down significantly in 2014. In 2014, there were 5,309 enterprises above designated size in the general machinery industry. The main business income for the year was 93.8 billion yuan, a year-on-year increase of 5.62%, and a decrease of 7.22 percentage points from the previous year. The year-on-year increase was the lowest, and it continued to decline. It is beyond the expectation of the industry.

The total profit of the industry reached 63.1 billion yuan, an increase of 1.31% year-on-year, and a drop of 9.34 percentage points from the previous year. The profit rate of the main business also decreased by 0.29 percentage point from the previous year. Insufficient market demand, increased investment in corporate transformation and upgrading, investment in science and technology, and energy conservation and emission reduction are the main reasons for the decline in profits.

The export of products was accelerated, and the growth of imports slowed down. The statistical data of 62 general taxation products in the general machinery industry showed that the cumulative import and export volume was US$37.787 billion, which represented a year-on-year increase of 7.63%, and the increase rate was 0.47 percentage point lower than that of the previous year. Among them: Imports were US$14.835 billion, which was a year-on-year increase of 1.05%, an increase of 5.65 percentage points from the previous year; exports were US$23.052 billion, a year-on-year increase of 12.33%, an increase of 11.53 percentage points from the previous year. The trade surplus was 8.217 billion U.S. dollars, an increase of 2.377 billion U.S. dollars over the previous year, a record, and the overseas market was accelerated.

The industrial added value maintained steady growth. In the general machinery industry, the value added of pumps, valves, and compressors increased by 8.7% year-on-year, which was 2.3 percentage points lower than the previous year; the increase in the value of the fan industry was 11.5% year-on-year, 1.1 percentage points higher than the previous year; The increase in value added of other general machinery industries was unchanged from last year.

Affected by the decline in the traditional market

According to the current industry situation, the head of China General Machinery Industry Association stated that this is mainly related to the following reasons.

First of all, the traditional market continues to decline and new industries are slow to develop. The demand for traditional host markets was sluggish, new projects decreased, and transformation projects increased. However, the increase in transformation projects was far from meeting the industry's production capacity. Enterprises obviously felt that the market information increase was declining compared with the same period of last year, and the industry situation was grave. Second, orders fell and there was insufficient stock of contracts. In the past two years, the situation in the industry has continued to be severe and the contracted orders have been insufficient. In 2014, the demand in the traditional market dropped significantly, which will affect the contracted volume of deliverables in 2015, which will have a negative impact on the first half of 2015. Second, receivables continued to grow, and the quality of sales returned declined. Due to the impact of the economic situation, accounts receivable continued to grow, and some users postponed their receipts or refused payment by various unjustified reasons.

How will the industry develop in 2015? The person in charge of China General Machinery Industry Association stated that at present, there has been a fundamental change in the development model and development environment of China's manufacturing industry. The development of the general machinery industry has entered a phase of lean development, quality improvement and efficiency enhancement, and intensive development. From the perspective of the development process of developed countries, the share of manufacturing industry in the national economy will gradually decline, and the service industry will gradually increase its share of GDP. The national economic development context has also changed from heavy industry to consumption. The general machinery industry is mostly supporting and auxiliary equipment. The growth rate of development will also decline accordingly. The completion of major economic indicators in 2014 has begun to show. The development of the general-purpose machine industry is going down to the bottom. With the elimination of some outdated production capacity in the general machinery industry, the quality resources of the general machinery industry will maintain a low-to-medium-speed development trend. The future development will be led by the development of quality and efficiency. It is predicted that in 2015 the development of the general machinery industry, the main business income will increase by 5% year-on-year, total profit will increase by 3% year-on-year, and the value of shipments will increase by 6%.

Chuang Yongbin, special advisor of the China Federation of Machinery Industry and chairman of the General Machinery Industry Association of China, pointed out that under the current economic environment, the development of the equipment manufacturing industry faces three major challenges: First, the lack of market demand in an objective manner makes it difficult to fundamentally change in a short period of time; Second, the industrial structure is irrational. There is a serious excess of low-end and high-end products, high-end products still need to be imported, and the capacity for independent innovation is not strong enough to meet the needs of the national economy and infrastructure. Take offshore engineering as an example. Currently, offshore oil drilling platforms The localization rate of equipment is only about 30%. Third, localization of major technical equipment has yet to become the consensus of the whole society. Similar to the localization of natural gas pipeline transportation equipment and nuclear power equipment, etc., it is related to national economic security and must use “Chinese goods”.