Current Development Situation And Market Prospects Of My Country's Valve Industry

Introduction: Data released by the China Lined Valve Industry Federation on the 3rd showed that the industrial added value of 13 sub-sectors of China's valve industry all grew rapidly at double-digit rates in the first half of the year, with engineering valves and heavy mining valves growing the fastest. The chemical industry and electrical industry, which account for a large proportion of the total volume, contributed nearly 59% to the growth of the entire industry. According to the data, the comprehensive index of economic benefits of China's valve industry in the first half of the year was 169.55%, an increase of about 20 percentage points over the same period last year, and the profit margin of main business income was 5.33, an increase of 0.49 percentage points year-on-year. The vice president of the China Valve Industry Federation said that the government's policy to revitalize the equipment manufacturing industry, strong market demand, and enhanced industry investment capacity are all reasons for the high growth. Data show that in the first half of the year, China's machinery industry exports earned US$65.2 billion, a year-on-year increase of 36.15%, and a cumulative trade deficit of US$1 billion, a year-on-year decrease of about US$2.6 billion. Cai Weici said that the trade growth mode of valves in China's machinery industry has improved, the proportion of general trade exports with higher added value has increased, and import and export products have been gradually upgraded. High value-added products such as automobiles, CNC machine tools, and power generation equipment have become the highlights of export products. The valve market has taken solid roots in China.
Five major development trends of China's valve manufacturing industry
1. The valve industry will continue to maintain its momentum of structural adjustment
With the acceleration of China's integration into the global economic environment and the rapid rise of its economic strength, China has become the most dynamic economic region in the world.
China has relatively complete economic facilities, relatively mature industrial development and low labor costs. It has a comparative advantage in becoming a global valve manufacturing center, and the valve manufacturing industry has obvious outward-oriented development characteristics.
The strengthening of the central position is first reflected in the comprehensive growth of valve product exports in recent years: the export growth rate of major valve products is higher than the growth rate of production, and higher than the growth rate of domestic market sales; the main valve and electrical products are in full bloom, not only the traditional export categories of electric valves, hand valves, and building valve products have a high growth rate, but also the export growth rate of kitchen appliances and bathroom products, which used to have a small export proportion, is also very obvious. The huge market and central position attraction will further attract the transfer of valve multinational companies' manufacturing centers to China.
2. Capital operations in the industry will become more active
In the global competitive environment, in order to obtain a favorable competitive position and improve competitiveness, industrial capital is another theme of industry operation. Supor and Vatti have been listed one after another, Hongbao is also actively working for listing, and Vanward's capital market operations will not stop because of the failure of the reorganization with Yuemei Ya. From the perspective of capital, the main feature at present is that the expansion of capital is intensifying. From the perspective of competitive behavior, the cooperation of resource sharing between enterprises is increasing.
3. The polarization of enterprises will be further intensified
The next few years will be a period of high-speed shock in the valve industry. The direct consequence of this high-speed shock is the expansion of the polarization trend in the current valve cabinet brand camp. It is expected that there will be absolutely fewer valve companies that can really survive in the market in the next few years than now. However, this high-speed shock in the valve industry will bring huge opportunities, and the result of the shock will make the market operation more rational.
4. Increasingly fierce competition among channels
Due to the oversupply of domestic valve cabinet products and the increasing quality pressure, sales channels have become one of the key competitive factors, and the competition for channels among all parties has become increasingly fierce. On the one hand, kitchen appliance manufacturers have strengthened their control over retail terminals, striving to reduce sales links, save sales costs, and develop sales channels in a professional direction, and the sales model of enterprises is developing in a direction that can adapt to diverse markets at the same time. On the other hand, the development trend of the sales industry has led to the continuous rise of the status of large home appliance chains, and their control over the industry has been enhanced, participating in and triggering price competition that was previously dominated by manufacturers. With their broad market coverage, procurement scale and cost advantages, large retailers will increasingly strengthen their control over production enterprises in terms of product pricing and payment delivery.
At the same time, the international market's requirements for my country's valve products will gradually develop and change, and there will be higher requirements for the quality, packaging and delivery period of Chinese products, and even gradually extend to the production process and product research and development, combining products with environmental protection, energy resources and human environment.
5. Market competition turns to competition of quality and technology
With the deepening of competition, the profit margins of all stages of the valve industry chain are being compressed, and the space for price reduction is decreasing. More and more companies realize that price competition alone cannot establish core competitiveness and is not the direction of long-term development, so they strive to explore new development paths.
Many valve companies have increased their investment in technology, developed new products with high technological content, and used product differentiation as a long-term strategy for enterprise development, seeking new market demand, and establishing new economic growth points (entering small household appliances and other similar industries) to achieve sustainable development of enterprises.
In order to improve their own strength and expand the international market faster, domestic valve companies will accelerate the integration with foreign companies through various means to improve product quality and competitiveness.
Although there are many constraints in the development of valve products in my country, the market prospects of my country's valve industry are very broad in the future. This is mainly due to:
1. Support of national policies. As the country's policy of accelerating the revitalization of the equipment manufacturing industry is gradually promoted, the development of general basic manufacturing industry will be further supported.
2. Strong demand in the valve product market. The state-owned economy continues to develop steadily. Fixed asset investment is gradually expanding. In particular, the construction of several century-old projects such as "West-to-East Gas Transmission", "West-to-East Power Transmission", and "South-to-North Water Diversion" requires a large number of valve products; in addition, my country is facing the arrival of the industrialization era, and the petrochemical industry, power sector, metallurgical sector, chemical industry and urban construction, which are large users of valves, will increase their demand for valve products. For example, the total valve demand for large and medium-sized coal-fired power generation units in the power industry during the "Eleventh Five-Year Plan" is predicted to be: the total demand for valves is 153,000 tons, with an average annual demand of 30,600 tons; the total demand for valves is 3.96 billion yuan, with an average annual demand of 792 million yuan.
3. With the accession to the WTO, the lowering of international trade thresholds and the adjustment of product structure in developed countries, China is gradually becoming the world's largest processing plant, and the processing and production of valve products faces greater development space. Therefore, as long as enterprises can seize opportunities, strengthen R&D capabilities, and continuously improve product technology content and product quality, they will be able to take the initiative in the vast market competition.
1. Enterprises with technological innovation capabilities have long-term competitive advantages. They can transform traditional industries with high-tech, actively introduce, digest and absorb advanced technologies and equipment at home and abroad, improve the equipment level of enterprises, accelerate equipment updates and technological innovations, realize the optimization and upgrading of the valve industry and products themselves, and increase product added value. Such valve enterprises will have long-term competitive advantages.
2. Leading enterprises in the industry will develop rapidly. These leading enterprises have advantages not only in scale, but also in technology and capital. As the market gradually increases the quality requirements for valve products, these enterprises will gain development opportunities in the fierce competition. For example, my country is currently vigorously developing the nuclear power industry, and at the same time, the construction of projects such as the West-East Gas Transmission and the oil pipeline connecting Central Asia has started. This will provide opportunities for my country's leading intelligent valve companies such as Hongcheng Co., Ltd. and the leading nuclear power valve company China Nuclear Suzhou to grow and develop.