Analysis of Unfavorable Factors in Domestic Pump Valve Industry

In recent years, China's industrial development has been very rapid, bringing new opportunities for development for my pump and valve industry. However, as a whole, the competition in the pump and valve industry is fierce. In particular, compared with foreign countries, technology does not dominate, and China's pump and valve companies need to eliminate backward production capacity, enhance market competitiveness, and expand development space.

During the twelfth five-year period, the development orientation of the pump and valve industry was: high-end, complete set, headquarters economy and internationalization strategy. It was proposed that by the end of the twelfth five-year period, high-end products accounted for more than 40% of the total output value of pump valves, and the output value of complete sets of enterprises. Accounted for 20% of the total output value of the pump valve and other development goals. Although the outlook for the domestic pump and valve industry is optimistic, there are also some unfavorable factors.

First, as the raw material of the valve and valve industry, steel is increasingly in need of transformation as environmental pressures gradually increase. The steel industry will face the danger of reducing production. The reduction in production will lead to a rise in steel prices in the short term, leading to higher costs in the pump and valve industry and short-term price fluctuations in the pump and valve industry. Therefore, the valve and valve industry will also be greatly affected.

Second, in recent years, China's pump and valve industry has developed rapidly. Not only has the production level of pump valves been greatly improved, but its output has also increased substantially. However, what is more embarrassing is that small and medium-sized and private pump and valve companies have a relatively large growth rate in this process, and their proportion is relatively large. However, there are few large-scale pump and valve companies, and the brand of the domestic pump and valve industry is not strong and the market competitiveness is poor. From the development status of the pump valve industry, the pump valve industry itself is also facing the risk of eliminating backward production capacity.

Third, under the influence of the financial crisis, the steel market, construction, and upstream and downstream industries have experienced a sharp contraction in the market. This is undoubtedly a fatal blow to the pump and valve industry that depends on the development of these industries. Although the financial crisis has caused a negative impact on China's pump and valve industry to a certain extent, it has also exposed the internal defects of the valve and valve industry. The survival of the fittest under the market economy system has been greatly improved.

The fourth is: China's domestic market for pump valves is very broad, while the export market is slightly "thin."

During the "Twelfth Five-Year Plan" period, the pump and valve industry will contribute to the development of a new type of industrialization and follow the direction of a resource-saving and environment-friendly society. Thanks to the financial crisis, due to the reduction of orders in China's pump industry and the increase in raw material prices, the industry began to play the role of the survival of the fittest. Some backward production capacity was eliminated from the industry, making the pump and valve industry "light-loaded" and gaining better space for development.

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