After more than 10 consecutive years of rapid growth, my country's valve industry has ranked first in global valve manufacturing output. However, with the global post-financial crisis and the slowdown of China's macroeconomic growth, this situation of rapid development for many years will change. Affected by the slowdown of domestic economic growth and the post-international financial crisis, the demand for valve markets at home and abroad has generally declined, and various uncertainties have increased. The development of enterprises has encountered many new problems, which hindered the investment and development of the valve industry, and brought valve products accordingly. With the decrease in orders, the development speed of my country's valve industry has slowed down significantly.

For this reason, a brief analysis of the operation of my country's valve industry and the main factors of the valve industry's slowdown from the following aspects, as well as how to create a new guide for the development of the valve industry, is not comprehensive and is for reference only.

1. The overall operation of the industry in 2014:

According to statistics: In 2014, the production and sales of valve enterprises across the country increased at a moderate rate. There were 1,750 enterprises above designated size (companies with annual sales income of 20 million yuan), with total assets of 191.5 billion yuan, an increase of 8.01% year-on-year; the production of valves was 10.31 million tons, year-on-year An increase of 0.05%. The growth rate dropped sharply compared with the previous year, and the annual production volume maintained a steady growth trend. Achieved 257.7 billion yuan in main business income, a year-on-year increase of 5.66%, a decrease of 7 percentage points from the same period last year; a total profit of 18.3 billion yuan, a year-on-year increase of 4.57%, and a decrease of 8.33 percentage points from the same period last year; accounts receivable 42.2 billion yuan, an increase of 6.84% year-on-year; the completed export delivery value was 37.1 billion yuan, an increase of 5.4% year-on-year.

According to the statistics of the Valve Branch of China General Machinery Industry Association, there were 127 key valve member companies participating in the statistics in 2014, and there were 25 companies with a total industrial output value of more than 500 million yuan.

In 2014, the 127 key member companies of the Valve Branch realized a total of 33.761 billion yuan in main business income, a decrease of -0.75% over the same period of the previous year, and realized a total profit of 3.082 billion yuan, an increase of 0.40% over the same period last year; the completed export delivery value was 44.81 Billion yuan, an increase of 0.79% over the same period last year.

Two, the main factors of the current slowdown in the valve industry

After more than 60 years of development in our valve industry, although there are more than 8,000 domestic valve companies, most of the products are homogenized and low-end. on the one hand. Investment and start of many domestic petroleum and chemical projects have slowed down, and new projects have decreased, resulting in a decrease in demand for valve products; on the other hand, the world economy is sluggish and export valve orders are insufficient. In the past, CNPC, Sinopec, and CNOOC used networked procurement, but now they are changed to centralized procurement in the framework. A large number of petroleum and petrochemical valve products are controlled and monopolized by dozens of companies, which invisibly makes it difficult for other companies to enter the framework and reduce Sales of valve products.

The sharp “dumping” of national oil prices directly led to the insufficient operating rate of oil equipment. The relationship between supply and demand is the core factor that affects the changes in the oil market, and it has also brought about the downturn in the valve equipment market, and the global crude oil price is hovering at a low level. The drop in international oil prices has also led to a sharp contraction of profits in the petrochemical industry. These factors have affected the sales of valve products and are one of the factors that slow down the development of the valve industry.

If oil prices cannot rise to more than 60 US dollars per barrel and remain stable, the global oil equipment market may continue to be sluggish, bringing about the impact and downturn of energy-required valve equipment.

Driven by benefits, some companies have not paid much attention to science and technology. The company's technology research and development capabilities are getting weaker and weaker, the level of skilled workers has not improved quickly, people are impatient, and the company's culture, management, and skills lack inheritance. Some companies seem to be busy on the surface, and they are all low-end products, and the benefits are not satisfactory. At the same time, the deepening of the government’s anti-corruption has led to the suspension of some projects, the overcapacity of many enterprises, and the shrinking of the consumer industry. These are all external factors that have led to this round of economic downturn, and have also caused the valve entity industry to be in a vicious situation of homogenization and low-price competition for a long time. Circulation, does not seek quality and quality, lack of technological innovation, the consequence is that the development of the valve industry in the past two years has been sluggish.

Three, create a new engine for valve economic development

At present, the downward pressure on the valve industry economy is still relatively large, and valve companies are facing more difficulties in their production and operation. With increasingly fierce market competition, companies’ labor costs continue to rise, and at the same time, facing the serious overcapacity of the valve industry, speeding up the transformation of economic development mode It is the only way to achieve sustainable development, and the transformation and upgrading of industrial structure is a top priority for my country's valve companies. To implement the development strategy of scientific and technological innovation, create a new engine for valve economic development, stimulate innovation and entrepreneurial vitality, promote structural adjustment, and accelerate transformation and development. Enterprises must increase investment in scientific research, improve innovation capabilities, and focus on the development of high-end valve products and improve valves. Equipment localization rate.

It is obvious that my country's valve industry has developed from a high-speed to a low-to-medium speed, and has entered a stage of steady development, quality improvement, and efficiency enhancement at low and medium speeds. The key work for the next period is to develop supporting valve products for emerging industries. For example: coal chemical valve, LNG ultra-low temperature valve, nuclear power valve and long-distance pipeline valve, etc.

At the same time, as long as we actively digest the excess capacity, improve the technical content of products, and focus on developing new products, the products will gradually transition from low value-added to high value-added, identify their own corporate positioning, closely follow the pace of the country’s “Belt and Road”, and explore both domestic and foreign markets. In this market, focusing on products and services can realize the successful transformation of the enterprise and the healthy development of the industry.