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      The scale of the market is expanding, and the profits of enterprises will not see how the valve industry will break.

      The scale of the market is expanding, and the profits of enterprises will not see how the valve industry will break.

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      [Abstract]:
      Accordingtothedisclosedannualreportdata,amongthe30listedValveCompaniesinChina,thereare10enterpriseswithpositivesalesgrowth,accountingfor33%;20enterpriseswithnegativesalesgrowth,accountingfor67%;11comp
      According to the disclosed annual report data, among the 30 listed Valve Companies in China, there are 10 enterprises with positive sales growth, accounting for 33%; 20 enterprises with negative sales growth, accounting for 67%; 11 companies with positive net profit growth, accounting for 37%; and 19 companies with negative sales growth, accounting for 63% of the total.
       
      Looking from the whole industry, the annual sales of domestic valve is nearly 300 billion yuan, but the profit is only 16 billion yuan, the profit margin is only about 5.3%. The total value of imported valves in China is more than 16 billion yuan annually, with a profit of more than 8 billion yuan and a profit rate of about 50%. The domestic market is expanding, but valve companies have not seized more benefits from it. What is the reason? How should valve enterprises seize the opportunity to grab this "big cake"?
       
      "Let the profits change the market" creates a vicious circle.
       
      At present, valve enterprises are facing challenges in many aspects, such as cost, technology, market, brand and so on. Especially, the increase of production cost leads to the decrease of profit of valve enterprises. As a traditional manufacturing industry, valve industry belongs to labor-intensive industry, which has certain requirements for raw materials, labor, management efficiency supply chain management. However, in recent years, all kinds of labor costs remain high, especially labor wages and technical level do not match, land and management costs rapidly increased (especially in the relatively complete industrial chain of Jiangsu and Zhejiang areas), a direct impact on the profits and development of enterprises.
       
      The lack of innovation hindered the technological progress of the industry. Compared with the international advanced level, the domestic manufacturing level still has a certain gap, and the technical foundation is relatively weak, which leads to the valve industry in China has been in a disadvantageous position in the high-end market technology competition, thus in the entire industrial chain, domestic user enterprises prefer imported products. For example, some large-diameter high-temperature and high-pressure valves, high-parameter, anti-corrosion candle and other high-tech valves, heavily dependent on imports. Many enterprises lack the financial and technological capabilities to support product R&D innovation, so they generally rely on imitation and low-price competition. This makes the valve industry innovation rate is very low, can not enhance the enthusiasm and motivation for product innovation and quality improvement.
       
      Market concentration is low and brand influence is weak. According to statistics, at present, there are more than 3000 valve manufacturing enterprises in China, ranking the number one in the world. However, the market share of the top 10 enterprises is only 8%~9%. There are many small and medium-sized enterprises with low-level, small-scale and family workshops. In order to gain more market share, many enterprises take the "profit for market" approach, thus forming a vicious circle of competition, which is also one of the reasons why the valve industry in the market environment is expanding but low profit.
       
      National strategy brings new opportunities for development
       
      Opportunities and challenges often coexist, the market environment is bullish and the national policy is good, to the valve industry has brought new opportunities.
       
      At present, the transformation and upgrading of manufacturing industry has been upgraded to a national strategic height. The relevant policies, value-added tax reform, and the improvement of enterprise R&D cost accounting methods are expected to effectively reduce the burden of enterprises and stimulate development vitality. Valve enterprises can also enjoy the good of them. In the industrial valve market, the government's requirements for energy development and the implementation of the green sustainable development strategy have also brought new opportunities to the industrial restructuring and upgrading of the valve industry. The construction of supporting valves and new material valves for major petrochemical projects will become a new market development direction. In the civil valve market, serious overcapacity and consumers'attention to environmental protection make energy-saving and environmental protection, high cost-effective, high-quality products become the favorite of the market.
       
      Valve enterprises can also look at the international market, looking for a new breakthrough point. The signing of the agreement on Asian infrastructure investment bank and the practice of the "one belt and one way" initiative have opened a new door for China's valve industry. The company's vision has also begun to aim overseas, looking for opportunities in neighboring countries and other markets. Infrastructure development in neighboring countries, such as Southeast Asia and the Middle East, is spreading in large quantities, and is gradually forming new market focus and demand.
       
      Compared with the products of developed countries, domestic valve products generally have price advantages, and have certain advantages in the market competition. Of course, while striving to open up foreign markets, domestic enterprises should also actively promote brand value-added through technological innovation and enhance the sustainable development competitiveness of the valve industry in order to achieve long-term development.
       
      Digitalization achieves brand premium
       
      The Internet of Things, cloud computing and big data technologies have revolutionized the way companies research, produce, operate, market and manage. Building a comprehensive digital management system will greatly enhance the brand competitiveness of valve enterprises.
       
       
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