How Can Valve Enterprises Achieve Transformation And Development?
In the development of the national economy, the Lined Valve industry, as an important link in the equipment manufacturing industry, plays a very important role. With the rapid development of my country's economy, the valve industry has also flourished like mushrooms after a spring rain, but with it, there are problems such as lack of key core technologies, weak awareness of insufficient technological innovation, many small and medium-sized enterprises but poor risk resistance, backward production equipment and low product grades, and irregular corporate management and backward concepts. If these problems are not solved, the development of the industry will definitely be hindered or even regress.
What should valve companies do next? "Going against the current, if you don't advance, you will retreat" - facing fierce market competition at home and abroad, how should valve companies be prepared for danger in times of peace if they want to become bigger and stronger? - This requires "transformation and upgrading".
So, how can valve companies achieve transformation and development? How to solve the management, technology and product problems that arise in the process of enterprise development? These all require everyone to discuss and learn from each other. China Pump Valve Network has visited enterprises, contacted experts, and paid attention to industry trends, and listed the following analysis and opinions to provide reference for business operators, hoping to help enterprises find problems, examine problems, and solve problems.
1. Introduce advanced equipment to improve valve grade
In the early days, my country's valve industry had a low starting point, small scale, low degree of specialization, and low degree of marketization. The industry has developed vigorously, but with the increasing demand for economic development and foreign competition, problems such as simple equipment, unreasonable product structure, few high value-added products, and vicious competition have gradually emerged. At the same time, low-end and medium-end products occupy a large market, while market demand is gradually becoming medium-to-high-end. The demand for high-end valves such as high-pressure and high-parameter valves in major national projects is mainly supplied by imports. Therefore, it is urgent for enterprises to improve product grades.
To develop the valve manufacturing industry, modern advanced equipment is the foundation, and the quality of equipment directly determines the value of the product. Nowadays, product technology is a bottleneck restricting the development of the valve industry. Therefore, the primary task of the current valve industry is to introduce new equipment and improve the grade of valves.
When business operators introduce equipment, they should first consider the company's financial recognition capacity. They should not blindly introduce overly new and expensive equipment. They should invest in value for money to achieve the goal of "spending one cent to make one dollar"; at the same time, ensure that the equipment is mid-to-high-end, try to grasp the national main line projects or major projects, and it is best to have an accurate positioning product; finally, ensure that the company can fully master the equipment operation and simple fault repair, in order to create a production workshop with advanced CNC machine tools, machining centers and other advanced equipment, equipped with a special clean assembly workshop, advanced and complete test equipment, advanced leakage detection methods, and other mechanized, semi-automated and automated production workshops.
2. Leading enterprise development with technological innovation
Innovation is the soul of national progress and the inexhaustible driving force for national prosperity. Without innovation, enterprises cannot maintain vigorous vitality for a long time. The development of enterprises depends on the market, and in order to develop appropriate market competition, enterprises must continue to innovate and progress, and adjust the industrialization structure. Valve companies should combine their own actual conditions, adhere to "scientific and technological innovation", increase new product research and development, increase market core competitiveness and leading power, and lead enterprise development with technological innovation.
At present, many domestic valve companies have also introduced relatively advanced equipment and technology, but the emphasis on scientific and technological innovation is still obviously insufficient. The vitality of valve companies lies in whether their products are vital, high-tech and advanced. Although backward products can bring temporary benefits, they cannot immediately abandon the value they generate. However, only by insisting on independent innovation and developing new products can we break out of the market chaos of "lack of innovation and more imitation", bring long-term benefits and development to enterprises, and create independent brands.
3. 1+N mergers and reorganizations to accelerate effective resource integration
In recent years, valve companies have not only faced unfavorable factors such as tightening of money supply, rising raw material prices, appreciation of the RMB, and rising labor costs, but also encountered pressures such as energy conservation and emission reduction, power outages, etc.; at the same time, with the deepening of the economy and fierce market competition, some small and medium-sized enterprises with thin profits and poor brand effects are struggling. The production methods and business models of small and medium-sized valve companies that were once prosperous have gradually revealed pathological conditions, and their risk resistance and breakthrough capabilities are obviously insufficient. If valve companies want to break through these difficulties, they must transform and upgrade, but whether they can achieve the expected results after the transformation makes operators hesitant - so, "alliance transformation" came into being: risk sharing, resource sharing, and win-win results. The road to transformation can also rely on each other and develop together.
"One chopstick is easy to break, but ten chopsticks are as hard as iron" - companies should promote the centralized integration of resources through joint mergers and acquisitions to enhance their competitiveness and influence. Practice has proved that the optimization combination of one large enterprise and N small and medium-sized enterprises is feasible and can be used as a reference. So, how should companies connect and merge?
First, the corporate culture, management model and development concept of both parties can be mutually recognized and integrated on a certain basis; secondly, the focus of mergers and reorganizations is to eliminate backward production capacity and improve cohesion. The production factors such as the factories, technologies, equipment, brands, financing channels, products, management teams and market resources of both parties should be reasonably and highly optimized, taking the essence and discarding the dross, achieving more specialized production, and forming a complete industrial chain, so as to ensure the optimization of product quality and cost; then, the combined group company will focus on brand creation and marketing network construction, focusing on the research and development and production of high-tech products, while the subsidiaries will focus on the specialized production of advantageous products, make them refined and strong, unify the company's trademarks, technical services and quality management, jump out of the disorderly competition of peers, form a strategic alliance, and work together to open up new markets; at the same time, mergers and reorganizations should pay attention to gradual progress, and keep in mind that haste makes waste.
Large enterprises and leading enterprises need to re-allocate resources and seek potential supporting enterprises; small and medium-sized enterprises should take the initiative to integrate and reorganize, give full play to their respective advantages, and get rid of the previous situation of "each doing research and development and looking for markets separately". The big ones will lead the small ones, and the strong ones will join forces to form a strategic alliance to extend the industrial chain, ensure the optimization of product quality and cost, and better complete the transformation and upgrading.
At the same time, China Pump Valve Network recommends that the government and relevant functional agencies can better assist enterprises in macro-control, policy guidance, coordination and supervision, coordinate and improve financial support, tax exemptions, asset disposal, land and real estate, project approval, technical transformation interest subsidies, employee resettlement and other issues, and create a better environment for joint restructuring of enterprises.
4. Establish a modern management system and build a good competitive landscape
Nowadays, valve companies still generally implement family-style management. The biggest advantage of family-style enterprises lies in management costs and cohesion. It can not only reduce the entrusted management costs of the enterprise, but also make it easier for members to trust and understand each other due to the consistency of overall interests, thereby increasing the cohesion of the enterprise; however, when the market changes faster and faster and the competition becomes more and more fierce, the disadvantages of closed family management completely controlled by family members will emerge, such as confusion in the direction of enterprise development, unreasonable company management system, and lack of cohesion between employees and enterprises. In order to expand and develop, today's enterprises need professional and standardized management systems. Therefore, the transformation of family-style management model is urgent.
