High-end equipment advantages highlight machinery industry will accelerate development

It is expected that the growth of China's equipment industry production and exports in 2017 will continue to rise. The Saidi think-tank experts recently predicted that China's equipment industry will accelerate its development in 2017, and the growth rate of industrial added value will continue to rise year-on-year, which is expected to remain at around 11% throughout the year; export delivery value will achieve year-on-year growth, and it is estimated that the cumulative increase for the whole year of 2017 About 2%.

Experts believe that China's equipment industry will present new development patterns and trends, rail transportation equipment, additive manufacturing, and general aviation will become new growth highlights. The automotive industry has maintained a steady growth, and the mechanical industry has continued its differentiation trend. The shipbuilding industry will gradually turn for the better, smart manufacturing will accelerate development, and high-end equipment innovation will develop.
This Year's Opportunities Outweigh the Challenges 2016 was the first year of the “Thirteenth Five-Year Plan”. Under the stimulation of a series of industrial development policies, the economic operation of China’s equipment industry was generally stable. Looking forward to 2017, China's equipment industry will face both development opportunities and challenges, both positive factors such as stable domestic economic growth and gradually emerging supply-side structural reform policy effects, as well as unfavorable factors such as persistent domestic and international demand sluggishness and difficulties faced by companies exceeding expectations. But overall the opportunity is greater than the challenge.
Although the international economic situation remains grim, new growth points, growth poles, and growth belts will be implemented along with the deepening implementation and accelerated implementation of China’s three regional development strategies, the strategy for the construction of medium and long-term manufacturing powers, and the acceleration of international production capacity and equipment manufacturing cooperation. Gradually formed, the domestic economy will maintain a steady growth, and the promotion factors of various industrial policies will gradually emerge. In particular, the implementation of the five special projects such as "China Manufacturing 2025" and related supporting "industry-based strengthening" and "smart manufacturing" will speed up the restructuring and transformation of the equipment industry. In terms of exports, the weak recovery trend of the global economy in 2017 cannot be improved. However, due to the “13th Five-Year Plan” period, China will develop and equip the equipment industry as a new export-led industry, the “One Belt and One Road” strategy and “About promoting international production capacity and equipment manufacturing. The "Guiding Opinions on Cooperation" has been speeded up and China's equipment export growth is expected to accelerate.
Various sub-sectors will continue their differentiation trend In 2016, the overall operation of the machinery industry was stable, and the major economic indicators maintained a slight upward trend. However, the trend of operating trends among industries was even more pronounced. The construction machinery industry is still generally difficult. In particular, the decline in the efficiency of large and medium-sized enterprises has not yet changed, and the loss continues to expand. Orders in the petrochemical general machinery industry continue to be insufficient, industry profits continue to decline; the machine tool industry is still sluggish; instrumentation, electrical appliances industry in the market Demand, favorable policies, and large-scale upgrades in the fields of power generation and transmission and transformation have promoted the smooth progress of the machinery industry. It is expected that in 2017 there will be still more uncertainties affecting the economic operation of the industry. The demand for foreign trade will be weak, and there will be no significant improvement in the downward trend in investment. Downward pressure on the industry is still high. However, as the country’s macro-control policies are gradually in place and the economic situation improves, the economic operation of the industry is expected to continue its steady state.
At the same time, some machinery industries will continue their trend of growth and differentiation: traditional investment products such as construction machinery, heavy machinery, mining machinery, petrochemical equipment, and conventional power generation equipment, as well as machine tools, AC motors, low-voltage electrical appliances, wire and cable, and small and medium sized farm machinery products. Relatively surplus industries will continue their declining trend. New agricultural machinery, energy-saving and environmental protection equipment, cultural relic protection equipment, modern logistics equipment, and medical equipment that the country mainly supports will accelerate growth.
The shipbuilding industry will gradually turn for the better in 2016. Affected by the downturn in the global shipping market, the growth pressure of ships and marine engineering equipment will be greater. In the first half of the year, driven by the low rebound in the international shipping market, China’s new ship orders have rebounded significantly, and the reduction in shipbuilding completion volume has narrowed year-on-year. The three indicators have shown a trend of one liter and two declines. In October, the economic slowdown in developing economies and the lack of purchasing power in the international commodity market have caused the global shipping market to continue to slump. Coupled with the persistently low prices of new ships, shipping companies are facing problems such as difficulty in shipping and financing. The three major indicators of the shipbuilding industry decreased year-on-year and faced a severe situation.
It is expected that in 2017, the new round of major adjustments in the international ship market will continue to deepen, the characteristics of the industrial adjustment cycle will continue to show, and some changes in the demand structure will occur. The conventional ship types such as bulk carriers will still be weak, and LNG ships and new environmentally friendly transport ships will Maintaining strong demand, the growth in demand for car carriers, oceangoing fishing boats, and luxury cruise ships will be evident. Taken together, due to the implementation of the “Regulations for the Shipbuilding Industry” and the implementation of the national policy on resolving severe excess production capacity, the growth rate of shipbuilding completed in 2017 and the decline in handheld orders will further narrow, and new orders will rebound slightly. .
Smart Manufacturing Accelerates Development In 2017, with various industrial policies, smart manufacturing will be upgraded to a new level, smart manufacturing advancement routes in various fields will be further clarified, and Sino-German cooperation will be further deepened, opening up, sharing, and collaboration in the smart manufacturing industry. Ecology will gradually form. The combination of high-end equipment, energy-saving and new energy vehicles, electric equipment, agricultural equipment, high-performance medical equipment and other equipment manufacturers and users to jointly develop the required equipment will be promoted. With the development of Internet technologies, new models of intelligent manufacturing, such as network collaborative manufacturing, large-scale personalized customization, and remote operation and maintenance services, will continue to mature.
The advantages of high-end equipment highlight 2016, driven by a series of industrial policies of the country, the development of high-end equipment manufacturing industry has achieved remarkable results, and the proportion of output value to equipment manufacturing has gradually increased. The “Thirteenth Five-Year Plan” outlines that China will implement high-end equipment innovation and development projects in the next five years, including eight major industries such as aerospace equipment. “High-end Equipment Innovation Project Implementation Guidelines (2016~2020)” clearly proposes to concentrate resources and strive to break through large-scale aircraft, aero-engines and gas turbines, civil aerospace, advanced rail transit equipment, energy-saving and new energy vehicles, marine engineering equipment and high Technical ships, smart grid equipment, high-end CNC machine tools, nuclear power equipment, high-performance medical equipment, advanced agricultural machinery and other high-end equipment, improve industrial innovation and development capabilities and international competitiveness.
In 2017, in addition to long-term favorable policies, along with the transformation of manufacturing industries and the advancement of localization alternatives, the demand for high-end equipment manufacturing at home and abroad will be huge, and the development of high-end equipment will become the major trend of future manufacturing development. The use of industrialized applications as the goal of high-end equipment will accelerate the development of innovation. A number of key products and major equipment with strong signs will be speeded up. The level of independent design and system integration, and the development of core components will be gradually improved. The ability to continuously improve. With the engineering and industrial application of a number of major equipment, high-end equipment as a new business card for equipment manufacturing will drive the overall improvement of China's equipment manufacturing industry.
Market pressure still exists to determine the current market situation faced by the equipment industry. The Saidi think tank experts believe that in the coming period, the demand for some products will continue to be weak. Affected by the sluggish operation of upstream industries such as iron and steel, cement, petroleum, electricity, and shipping, the market demand for equipment products continued to decline. Orders for construction machinery, heavy mining machinery, general petrochemical machinery, ships, and other related industries were significantly under-supplied. From January to September last year, the fixed assets investment in the equipment industry grew by 1.54% year-on-year, a new low for the same period of growth since 2008, which was lower than the 6.6% and 1.56 percentage points for the growth rate of fixed assets investment in the entire society and the manufacturing industry, and also lower than last year's equipment. The growth rate of industrial investment was 7.16 percentage points. The decline in demand for investment in fixed assets for the equipment industry also led to insufficient demand for investment equipment products.
Exports still face some pressure. The current path of international economic recovery is still tortuous, and the overall international market demand remains weak. The depressed economic environment has forced many countries’ governments to protect the domestic market through indirect and non-tariff trade barriers and protective competition regulations. China’s trade protection pressure on the international market is still relatively large, and equipment manufacturers’ exports are experiencing technical and green issues. The trend toward trade barriers such as environmental protection and standards has increased.
Corporate finance pressures continue to increase. Although the central bank has cut its interest rates and cut interest rates several times in 2016, banks are reluctant to co-exist with some companies, and problems such as financing difficulties, high loan costs, and heavy burden on manufacturers’ guarantee financing are widely reflected in construction machinery and shipping industries. . At present, the cost of financing for private shipbuilding companies has reached 8% to 12%, making it difficult for companies to raise funds, which in turn has led to difficulty in securing letters of guarantee and the loss of many new ship orders. Based on this forecast, the production and operation of China's equipment industry enterprises in 2017 will still face greater difficulties.
In response to the above problems, the Sadie think tank experts suggested that: the accelerated development of the equipment industry should promote the adjustment of industrial structure and layout, including optimizing the product structure, optimizing the organizational structure, and optimizing the spatial layout; strengthening the capacity for independent innovation; accelerating the level of development of smart manufacturing; encourage Combining companies going out and introducing them, supporting domestic leading equipment companies to accelerate the pace of “going out”, promoting rail transit equipment, power equipment, petrochemical metallurgical equipment, automobiles, engineering machinery, agricultural machinery, aviation equipment, ships and marine engineering equipment Enterprises in other advantageous areas "go out."
At this year's local two sessions, the "real economy" once again entered the local two sessions of hot words, and "smart manufacturing" was widely favored by many places. According to previous media reports, there were 30 demonstration cities listed in the “Made in China 2025” pilot project. Experts believe that in the future, the “new three-pole” pattern in which the east of China’s manufacturing industry shifts to high-end equipment manufacturing, central industrial upgrading, and breakthroughs in western advantageous industries is expected to accelerate, while smart manufacturing will become a new breakthrough for manufacturing.

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