Machinery and equipment industry transformation and upgrading into an inevitable trend

Recently, when the industry discussed the development of the machinery and equipment industry, it was generally believed that the rapid growth of the machinery and equipment industry in 2010 was mainly due to the country’s macro-control policies to stimulate domestic demand and increase infrastructure construction. With the far-reaching effects of the international financial crisis, the country’s 4 trillion yuan investment plan is drawing to a close, and the market demand for domestic infrastructure construction is showing a downward trend. Judging from the situation in foreign countries, economic recovery in Europe and the United States and other countries has been slow, overseas purchases have been difficult to increase, coupled with the appreciation of the renminbi and continued domestic inflation, leading to a decline in the competitiveness of domestic machinery and equipment.

According to industry forecasts, as the country's overall macroeconomic environment changes, the growth rate of the machinery and equipment manufacturing industry may slow down in the next five years. The relevant person in charge of the Guangdong Machinery Industry Association stated that in the past 10 years, China’s average annual growth rate of GDP has reached over 13%, and the “Twelfth Five-Year Plan” will be the beginning of a new round of cycles, and the emphasis on GDP will no longer be emphasized in the next five years. As a result, the national economic growth rate will fall to around 7% and 8%, making it difficult to maintain double-digit growth. Under this background, how should the machinery and equipment industry cope with this change and complete the transformation? This is a bigger issue for the industry.

Ke Da, the general manager of Keda Electromechanical, predicts that the growth of the machinery industry will mainly depend on the country’s expansion of domestic demand. Therefore, the overall trend of the industry this year must be based on the adjustment of the country's macroeconomic policies and how to tilt the development of the real economy. He Peixi thinks that this year's machinery industry will show a trend of low, high and high, and companies with advantages will become more apparent, and the “polarization” of enterprises will become more apparent.