This year, the internal and external market demand remained weak, so that the rapid growth of the manufacturing sector had hidden some of the problems to be exposed. In the machinery industry, for example, the industrial added value, output value, profits, exports, product yield, fixed asset investment six major economic indicators showed a downward trend, the industry situation differentiation increased run economic difficulties increased. Data show that the first nine months machinery industry grew 8.6 percent, lower than the national industry average growth rate of 1.3 percent, the machinery industry in 12 industrial sectors by increasing the value of the growth rate fell to the first 10 qualifying.

Loss of rational blind expansion

In the 2012 National Machinery Industry Economic Situation report at the meeting held recently, executive vice president of the China Machinery Industry Federation CaiWeiCi noted that excessive expansion serious deterioration in the market environment, although the total demand on the rise year by year, but fall short of supply capacity growth, vicious competition is becoming increasingly fierce. Today, one of the reasons causing the situation is that some areas of excessive investment in the manufacturing sector, resulting in overcapacity. For example the steel industry in the past few years, the rapid expansion of production capacity by about 50%.

According to a sample survey Federation of Machinery Industry key enterprises showed that in the first nine months total order amount fell 0.35%, which is often as high as in previous years, more than 20% increase compared to fall a lot, "outstanding performance in the current the demand situation is still at a relatively depressed state. ""Especially in recent years, the rapid growth of investment in construction machinery, power transmission equipment, wind power equipment, machine tools and other industries, the price war is difficult to alleviate." CaiWeiCi said, in fact, in addition to technology yet to cross the border, is still unable to achieve localization of minority high-end equipment, most mechanical products are currently facing oversupply, vicious competition torment.

Where to Go

The current conflict is not the lack of machinery industry demand, but the homogenization of capacity expansion too fast. "As long as oversupply, there is no right to speak for the party in the absence of the right to speak to avoid market struggling, we must go." Difference "competition of the road; only be done in a particular area" hotshots can not ", to create local areas "shortage" situation, get higher than the peer average profit margin. "CaiWeiCi said. Therefore, to change the current situation in the machinery industry must proceed from all aspects of the whole industry chain, to existing long-established industrial structure adjustment, especially to curb blind expansion of production capacity of homogeneity, and enhance the "soft" capabilities, the pursuit of change "large, heavy "as" fine, fine, and spirit. "

According to analysis, the increasingly intensified competition will allow businesses to survival of the fittest: those strong sense of innovation, there are key parts supply initiative, faster product upgrades, with the core competitiveness of enterprises is expected to rise rapidly come to the fore, and product and process characteristics and are not advantages of the enterprises will face difficulties and even the demise of the declining effectiveness. This view has been confirmed in the machinery industry. Statistics show that the structural adjustment grasp early, "high-end attack, ramming foundation" companies generally faster progress can be achieved bucked the trend, sales growth of around 20% or more, such enterprises accounted for about 20 per cent of all enterprises, but 80 % of companies than last year the growth rate dropped significantly, including sales and profits have been at a depth of about one-third of negative growth.