Equipment Manufacturing Industry Stabilizes Operation

Equipment Manufacturing Industry Stabilizes Operation In 2012, China’s equipment manufacturing industry maintained double-digit growth in production and sales. The total industrial output value is expected to exceed 19 trillion yuan, a year-on-year increase of approximately 12.5%. Although the growth rate of the industry’s added value is lower than that of all industrial growth, it is still expected to reach more than 9%. . In terms of the volume of the machinery industry, the output value and added value continue to set a new historical record. The industry continues the overall trend of overall prosperity and cyclical adjustments in the past ten years.

Due to the slowdown in domestic and international market demand, rising manufacturing costs, and structural overcapacity, most businesses have increased their production and operation difficulties and their profitability has decreased. In the first three quarters of the year, the industry generally showed a continuous decline, while the fourth quarter of the year saw a stable operation.

In the early-warning index, the four indices of production index, export value, total profit, and product sales revenue were almost in a super-cooled "blue light district" throughout the year. Only the total profit recovered to the "light blue light district" in the fourth quarter. It shows that corporate profits have rebounded, and the industry operation has become a substantial stabilization.

Affected by macroeconomic regulation and a reduction in the rate of return on investment, the growth rate of fixed asset investment in the industry has dropped to around 25%, accounting for a drop in the proportion of manufacturing industries, reflecting the effect of regulation and control. However, the total annual investment exceeds RMB 4 trillion, and the scale is still huge. . The total investment in automobiles, electrical appliances and petrochemical equipment accounted for a relatively high proportion, and the investment in agricultural machinery and heavy equipment industries grew rapidly. Throughout the year, the capacity utilization rate of most industry enterprises has been at a relatively low level for many years. Therefore, the contradiction in the future overcapacity of structural production still needs to be focused, and it is necessary to continue to increase the elimination of production capacity that does not have profitability.

Looking ahead to 2013, from the perspective of the external environment of the industry, China continues to accelerate the drive for innovation, structural adjustment, and transformation of development methods, and further promotes external macroeconomic policies and economic, technological, and industrialization, informatization, urbanization, and agricultural modernization. The social environment is still good.

From the point of view of investment, the contribution of investment to the growth of the industry will maintain the level of 2012. It is expected that the investment recovery of downstream user industries such as rail transit, road transportation and other infrastructure investment, part of energy, raw materials and chemical industry will continue to be on this year's equipment manufacturing industry. Benefits are warmer, transformation and upgrading provide development conditions.

From the perspective of final consumption of urban and rural residents, automobiles and home appliances are the mainstay of consumption growth. At the same time, China will continue to improve its consumption promotion system. In essence, in the face of sluggish demand for external demand and falling manufacturing investment, the endogenous driving force for the growth of the equipment manufacturing industry is also the continuous formation of new hot spots for domestic consumption and the expansion of traditional consumer products.

In terms of hotspots, in 2013, demand for equipment in the traditional user areas of the equipment manufacturing industry, such as automobiles, aviation, ships, military industry, nuclear power, and real estate, is expected to pick up slightly. Among them, the agricultural machinery market will continue to benefit from policy support and will continue to maintain a relatively high growth momentum; high-speed railways and subways and other large-capacity and long-distance transportation equipment and related equipment manufacturing industry is expected to increase the degree of prosperity; urbanization will contribute to the objective To stabilize the real estate market, sluggish markets such as construction machinery and low-voltage electrical appliances are expected to restart. The requirements for energy conservation and emission reduction of import substitution, smart manufacturing and users continue to lead the structural upgrade of equipment manufacturing industry. This is also the direction of development of equipment manufacturing companies.

In 2013, the equipment manufacturing industry will experience double-digit growth for the first time in more than a decade, and many equipment manufacturing companies will spend the least number of orders in hand in recent years. As in 2012, there are still many companies that need to experience losses again or for meagre profits. However, as a whole, the signs of market recovery will be more pronounced. The majority of the company's production and operation will be better than the previous year, and overall profitability will increase.

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