From the second half of 2007 to the first half of this year, due to the slowdown in overseas market demand, and the impact of various factors such as the appreciation of the renminbi, rising labor costs, and rising prices of raw materials, the general machinery manufacturing enterprises along the coast of Zhejiang experienced a decline in exports. Some small factories that rely on overseas markets are even shut down or shut down. Industry experts stated that export-oriented companies in the general machinery industry began to “shuffle.â€
The export situation of enterprises is severe
According to statistics, in the first half of this year, the printing machinery industry in the general machinery industry achieved an export delivery value of 47.33 million yuan, a decrease of 5% from the same period of last year. This is the first time that the value of export delivery for the printer industry has declined over the years. Experts in the industry analyzed that the export of high-grade printing presses was blocked, and low-grade printing presses did not want to do so because of the low-profit export companies, which led directly to the decline in exports.
The export situation of the general machinery industry in the first five months is not optimistic. According to statistics, the export value of the entire industry was 24.244 billion yuan, an increase of 231.38% year-on-year, and the increase rate was 2.62 percentage points lower than the same period of last year.
Pan Xiuren, chairman of Zhejiang Zhedong Valve Co., Ltd., said in an interview with the China Industry News reporter on August 21st: “In the first 7 months, the total export volume of enterprises reached more than 8 million U.S. dollars, which was slightly higher than the same period of last year but was weakened by international demand. With the soaring costs, the company’s profit margins have narrowed, and the export situation in the second half of the year has not been optimistic.†He calculated this for the reporter: In 2007, sales of 12 million U.S. dollars worth of valve products could reach a profit of 10 million yuan. To make profits continue to maintain this figure, it is necessary to sell $15 million in valve products.
Not only does Zhedong Valve Company's export situation in the second half of the year, but still a long time later, is not very good, and other export-oriented petrochemical general machinery manufacturing companies also share the same feeling.
He Zhifeng, general manager of Zhejiang Fengqiu Group, stated that in the first 7 months, the group had overcome the adverse effects of external factors and achieved total export volume of 30 million US dollars, which was basically the same as that of the same period of last year. However, the export situation in the second half of the year was still very grim.
According to report, in the areas of Zhejiang Wenzhou, Taizhou, and Fujian where export companies such as pumps, valves, and compressors are relatively concentrated, the production concentration is low, competition is fierce, and the value-added products of small and medium-sized enterprises or companies are low. The pressure is even greater. About 30% of the companies have been forced to switch production or close their doors; large and medium-sized enterprises can overcome the difficulties temporarily, but if the export environment continues to slump, it will also be a challenge to the company's next survival limit.
Export strategy needs to be adjusted
Faced with the tight economic situation at home and abroad, many export companies have become passively active and have eased difficulties by increasing scientific research input, adjusting the structure, and taking the road of independent innovation.
Pan Xiuren said that although export products will also be raised by 15% to 20% with the increase in raw materials prices, they still cannot offset the pressure of rising costs. In order to reverse this unfavorable situation as quickly as possible, Zhejiang East Valve Co., Ltd. has begun to increase the use of high-value-added products to expand overseas markets since the beginning of the year, and low-value-added general-purpose valve products are basically not produced. In addition to adjusting the structure of export products, companies have also increased their cost control efforts.
He Zhifeng believes that factors such as rising prices of raw materials and upward adjustment of workers’ wages have squeezed out many profits of the company, but due to the high value-added of pump products exported by Fengqiu Group, with the increase of raw material prices, export product prices have also increased by 15%~20. About % can basically offset the pressure of rising costs. In spite of this, as the leading export enterprise of the pump industry, Fengqiu Group will further increase the export of high value-added products, after all, the foreign market demand is very large. While expanding overseas markets, Fengqiu Group also increased marketing efforts in the domestic market, walking on two legs, and eventually going one step better than one leg.
In the same way as an export-oriented enterprise, Zhejiang Kaishan Group's exports in the first half of this year have not only declined, but have also risen against the trend. According to statistics, from January to June, the total export volume of this group increased by more than 70% compared with the same period of last year, and the profit growth also exceeded 50%. Cao Kejian, chairman of Zhejiang Kaishan Group, told reporters that our product exports have not only shrunk, but have risen sharply, mainly due to the following reasons: First, to keep old customers and develop new customers. While maintaining old customers and traditional markets, we actively participate in domestic and international exhibitions. The 2007 Autumn Canton Fair and the 2008 Chilean Mining Expo have enabled Kaishan products to be gradually recognized and accepted by new customers in South America, Africa, and the Middle East. increase.
The second is to optimize the product structure. Since the beginning of the year, Kaishan Group has tried to control the export of small-mining machinery products with low value and low profits, and then turned to high-end products such as screw machines and DTH drilling rigs. For example, Chilean customers, mainly import miner-mining machines last year, have already this year Started bulk ordering of screw machines and rigs.
Third, the export of castings and pressure vessels grew steadily. From January to June, the company's exports to the United States, Japan, Australia, and other developed countries have achieved steady growth in their castings and pressure vessels, which have contributed to the growth of export sales.
Call for government to rescue the market
“Now exporting companies are in a very difficult situation and hope that the government can give more concessions.†Chen Jianming, chairman of Fujian Far East Group, said, “Especially SMEs out of the predicament, need to accelerate their product upgrading and technological innovation to improve their competitiveness It also requires the country to create a relatively relaxed environment for its policies."
The reporter noted that the slowdown in the growth of foreign trade exports and the sharp drop in profits of some export companies have caused the central government and relevant departments to pay close attention. It is reported that commercial banks will be granted new credit lines in the second half of the year; various local governments have also introduced measures such as financial “blood transfusions†and charging “reduction of burdensâ€. The purpose is to help competitive export companies overcome difficulties.
The relevant person of the Ministry of Commerce recently publicly stated that while restricting the export of “two highs and one low†products, China will actively optimize the export structure, change the mode of foreign trade growth, and focus on supporting aerospace, ships, railway locomotives, automobiles and parts, Exports of key products such as machine tools, construction machinery, communication equipment, consumer electronics products, new materials, and pharmaceuticals; encourage the export of self-owned brands and proprietary intellectual property products; research programs for export tax rebates for electromechanical and hi-tech products. With the introduction of relevant support programs, it is worth looking forward to whether this trend can be changed.
The export situation of enterprises is severe
According to statistics, in the first half of this year, the printing machinery industry in the general machinery industry achieved an export delivery value of 47.33 million yuan, a decrease of 5% from the same period of last year. This is the first time that the value of export delivery for the printer industry has declined over the years. Experts in the industry analyzed that the export of high-grade printing presses was blocked, and low-grade printing presses did not want to do so because of the low-profit export companies, which led directly to the decline in exports.
The export situation of the general machinery industry in the first five months is not optimistic. According to statistics, the export value of the entire industry was 24.244 billion yuan, an increase of 231.38% year-on-year, and the increase rate was 2.62 percentage points lower than the same period of last year.
Pan Xiuren, chairman of Zhejiang Zhedong Valve Co., Ltd., said in an interview with the China Industry News reporter on August 21st: “In the first 7 months, the total export volume of enterprises reached more than 8 million U.S. dollars, which was slightly higher than the same period of last year but was weakened by international demand. With the soaring costs, the company’s profit margins have narrowed, and the export situation in the second half of the year has not been optimistic.†He calculated this for the reporter: In 2007, sales of 12 million U.S. dollars worth of valve products could reach a profit of 10 million yuan. To make profits continue to maintain this figure, it is necessary to sell $15 million in valve products.
Not only does Zhedong Valve Company's export situation in the second half of the year, but still a long time later, is not very good, and other export-oriented petrochemical general machinery manufacturing companies also share the same feeling.
He Zhifeng, general manager of Zhejiang Fengqiu Group, stated that in the first 7 months, the group had overcome the adverse effects of external factors and achieved total export volume of 30 million US dollars, which was basically the same as that of the same period of last year. However, the export situation in the second half of the year was still very grim.
According to report, in the areas of Zhejiang Wenzhou, Taizhou, and Fujian where export companies such as pumps, valves, and compressors are relatively concentrated, the production concentration is low, competition is fierce, and the value-added products of small and medium-sized enterprises or companies are low. The pressure is even greater. About 30% of the companies have been forced to switch production or close their doors; large and medium-sized enterprises can overcome the difficulties temporarily, but if the export environment continues to slump, it will also be a challenge to the company's next survival limit.
Export strategy needs to be adjusted
Faced with the tight economic situation at home and abroad, many export companies have become passively active and have eased difficulties by increasing scientific research input, adjusting the structure, and taking the road of independent innovation.
Pan Xiuren said that although export products will also be raised by 15% to 20% with the increase in raw materials prices, they still cannot offset the pressure of rising costs. In order to reverse this unfavorable situation as quickly as possible, Zhejiang East Valve Co., Ltd. has begun to increase the use of high-value-added products to expand overseas markets since the beginning of the year, and low-value-added general-purpose valve products are basically not produced. In addition to adjusting the structure of export products, companies have also increased their cost control efforts.
He Zhifeng believes that factors such as rising prices of raw materials and upward adjustment of workers’ wages have squeezed out many profits of the company, but due to the high value-added of pump products exported by Fengqiu Group, with the increase of raw material prices, export product prices have also increased by 15%~20. About % can basically offset the pressure of rising costs. In spite of this, as the leading export enterprise of the pump industry, Fengqiu Group will further increase the export of high value-added products, after all, the foreign market demand is very large. While expanding overseas markets, Fengqiu Group also increased marketing efforts in the domestic market, walking on two legs, and eventually going one step better than one leg.
In the same way as an export-oriented enterprise, Zhejiang Kaishan Group's exports in the first half of this year have not only declined, but have also risen against the trend. According to statistics, from January to June, the total export volume of this group increased by more than 70% compared with the same period of last year, and the profit growth also exceeded 50%. Cao Kejian, chairman of Zhejiang Kaishan Group, told reporters that our product exports have not only shrunk, but have risen sharply, mainly due to the following reasons: First, to keep old customers and develop new customers. While maintaining old customers and traditional markets, we actively participate in domestic and international exhibitions. The 2007 Autumn Canton Fair and the 2008 Chilean Mining Expo have enabled Kaishan products to be gradually recognized and accepted by new customers in South America, Africa, and the Middle East. increase.
The second is to optimize the product structure. Since the beginning of the year, Kaishan Group has tried to control the export of small-mining machinery products with low value and low profits, and then turned to high-end products such as screw machines and DTH drilling rigs. For example, Chilean customers, mainly import miner-mining machines last year, have already this year Started bulk ordering of screw machines and rigs.
Third, the export of castings and pressure vessels grew steadily. From January to June, the company's exports to the United States, Japan, Australia, and other developed countries have achieved steady growth in their castings and pressure vessels, which have contributed to the growth of export sales.
Call for government to rescue the market
“Now exporting companies are in a very difficult situation and hope that the government can give more concessions.†Chen Jianming, chairman of Fujian Far East Group, said, “Especially SMEs out of the predicament, need to accelerate their product upgrading and technological innovation to improve their competitiveness It also requires the country to create a relatively relaxed environment for its policies."
The reporter noted that the slowdown in the growth of foreign trade exports and the sharp drop in profits of some export companies have caused the central government and relevant departments to pay close attention. It is reported that commercial banks will be granted new credit lines in the second half of the year; various local governments have also introduced measures such as financial “blood transfusions†and charging “reduction of burdensâ€. The purpose is to help competitive export companies overcome difficulties.
The relevant person of the Ministry of Commerce recently publicly stated that while restricting the export of “two highs and one low†products, China will actively optimize the export structure, change the mode of foreign trade growth, and focus on supporting aerospace, ships, railway locomotives, automobiles and parts, Exports of key products such as machine tools, construction machinery, communication equipment, consumer electronics products, new materials, and pharmaceuticals; encourage the export of self-owned brands and proprietary intellectual property products; research programs for export tax rebates for electromechanical and hi-tech products. With the introduction of relevant support programs, it is worth looking forward to whether this trend can be changed.
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