China's machine tool new orders for 19 months of negative growth

Abstract In the manufacturing industry, the machine tool industry is known as the “mother machine” of Chinese industry. In the development of China's machine tool industry for more than a decade, although it has achieved world-renowned achievements, it still faces big but not fine, big but not strong, and homogenized seriously...
In the manufacturing industry, the machine tool industry is known as the “mother machine” of Chinese industry. In the development of China's machine tool industry for more than a decade, although it has achieved world-renowned achievements, it still faces the embarrassment of being big but not fine, big but not strong, and serious homogenization.

The new order statistics from the key contact enterprises (parts) of the China Machine Tool Industry Association show that the downward trend in the running trend is more obvious. As of December 2012, new orders have been negative for 19 consecutive months, and the decline has been large, with the demand for low-end products significantly reduced. At the same time, the import volume of machine tool products used to meet the mid- to high-end market in 2012 was high. For example, the import value of metal processing beds from January to December was 13.66 billion US dollars, an increase of 3.3%. Among them, the import of gold cutting machine tools was 11.17 billion US dollars, an increase of 6.03%.

In an interview with the reporter of China Sankei Shimbun, Li Junhua, a researcher in the machinery industry of China Business Intelligence Industry Research Institute, said that due to the impact of the overall economic environment in China, in 2012, China's machine tool industry was in a low state of economic operation, and the capital occupied was large. Rising, the large amount of idle manufacturing resources and the contradiction between supply and demand have become increasingly prominent.

“At the same time, due to the shrinking domestic production of low-end CNC machine tools and overcapacity, coupled with the influx of foreign products, market competition will further intensify. The medium and high-end machine tools have long relied on imports, and domestic companies are in precision manufacturing. The gap with foreign companies is obvious, domestic enterprises are facing severe challenges of international competition." Li Junhua said.

The machine tool industry, which used to be in the manufacturing industry in China, is now bidding farewell to the era when demand exceeds supply and “closes the eyes” to make money. "China Sankei Shimbun" reporter noticed that the performance of the machine tool industry leader Shenyang Shenyang Machine Tool recently announced that due to the slowdown of domestic macroeconomic growth and other factors, the market demand for machine tool industry declined in 2012, the company is expected to earn 10 million yuan last year. - 40 million yuan, down 60% -90%.

In the 2012 annual performance report of Huadong CNC, the operating income decreased by 40.76%. The three financial indicators of operating profit, total profit and net profit attributable to shareholders of listed companies decreased by 1130.92%, 593.14% and 559.12% respectively.

Duan Jiaxuan, a researcher in the machinery industry of China Investment Consulting, interviewed by the reporter of China Sankei Shimbun, believes that in the process of economic downturn, industrial enterprises are the first to bear the brunt, especially facing China's own requirements for adjusting industrial structure and promoting sustainable development. The shrinking demand and high inventory are already common problems in the entire secondary industry. In the past, a large number of companies have expanded blindly, blindly doing large-scale and ignoring market risks. In the rapid economic growth, the sharp increase in production capacity can be effectively released, and as the economy declines, the risk of extensive capacity expansion is exposed.

This is not only an unprecedented and severe crisis, but also an opportunity for enterprise transformation and upgrading. In the face of the current macroeconomic downturn, how the machine tool industry can reverse the unfavorable situation, change the turnaround into profit, the enterprise to the high-end technology or the only way to break through this predicament.

Duan Jiaxuan said that in the past, the result of extensive capacity expansion was that a large number of enterprises gathered in the low-end market, and this part of the products corresponded to downstream enterprises, which were often small and medium-sized enterprises that lacked long-term planning and poor risk response capabilities. In the process, compared with the high-end product market, the shrinking demand in the low-end market is more serious. The contradiction between supply and demand eventually led to a serious overcapacity in the low-end market. However, the high-end market has insufficient capacity. While strengthening the mergers and acquisitions in the low-end and mid-end sectors, it is necessary to guide enterprises to enter the high-end market, and the machine tool industry is in need of transformation and upgrading.

Li Junhua believes that machine tool enterprises should focus on breaking through the core technology, so that product accuracy can be truly recognized by users in terms of maintainability, stability and reliability. In particular, it is committed to accelerating the successful industrialization and commercialization of technological innovation and thoroughly solving the domestic high-end. Compared with imported machine tools, the machine tool is “like a god-like” problem, which promotes the industry to enter a sustainable, ideal and stable growth stage.

Then, what challenges will enterprises face in the process of transformation and upgrading? Duan Jiaxuan believes that in the transition, in the face of technical barriers that need to be broken into the high-end market, but in the case of market forces, there will inevitably be enterprises to gain something. In addition, the chaotic competition in the low-end market is also a problem that must be faced. Although the market can be effectively solved through market integration and elimination, whether the government will introduce measures to “interfere” with the normal operation of the market is also a big variable.

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