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Machinery sector keeps steady growth amid downturn

Written by Administrator

Thursday, 13 August 2009 16:52

Machinery industry accounts for 80 percent in equipment manufacture industry and becomes the uppermost part in equipment manufacture industry. Since the second quarter of this year, China's national economy has steadied and recovered, which has driven the demand up in machinery industry market. Most economic indexes in machinery industry are recovering steadily month by month and the industry presents a continuously steady and mild recovering state in the whole. In the second half of this year, with the increasingly show of the national macro-control policy effect and the implementation effect of the plan on adjusting and revitalizing equipment manufacture industry, the annual output value in machinery industry is expected to realize an increase of over 12 percent.

Production and sale begin to recover, multiple policies open the market

China economic prosperity index on equipment manufacture industry showed that such indexes as sales value of industry, sales revenue, profits and tax in equipment manufacture industry have all increased, the employee situation was basically steady and the coverage of loss-generating enterprises decreased further in the second quarter of 2009.

Related statistics in machinery industry has also reflected the accelerated recovery in the industry. From January to June in 2000, the value-added of machinery industry increased 9.2 percent year on year. Although the growth rate reduced to a single digit for the first time since the latest seven years, the year-on-year growth margin has increased by 3.8 percentages comparing with that from January to February. Contemporarily, the aggregated profit in machinery industry from January to May was RMB189.8 billion yuan, decreasing by 7.73 percent year on year, and the year-on-year reduction range has narrowed by 18 percentages comparing with that from January to February, which shows distinctly a narrowed reduction range. In the second quarter, the growth margin on many economic indexes began to upswing, indicating the signal that the industry has steadied and recovered.

The improvement of the industrial situation embodies positive effect of a series of national policies and measures on revitalizing machinery industry.

Firstly, the implementation of the proactive fiscal policy and moderately loose monetary policy has provided machinery industry with a favorable environment for investment and consumption. Secondly, the timely come-into-being of the plan on adjusting and revitalizing equipment and manufacture industry has become an effective impetus for enterprises to answer crises, welcome challenges and accelerate development. Especially the equipment independent target definitely proposed in the plan, which refers to nine key industries such as steel and iron, auto, petrochemical, shipping, light industry, textile, non-ferrous metal, electronic information and national defense and military industry, has played a significant role in driving the manufacture and demand in the equipment industry.

Additionally, the policies of providing the subsidy for purchasing agricultural machinery and "Autos going to the countryside" have initiated the rural consumption market. Benefited from the greatly increased subsidy for purchasing agricultural machinery, the gross industrial output value in agricultural machinery industry from January to June increased by 23.05 percent year on year, among which, the output of mid and large-sized tractors, harvest machinery and field-working machinery increased by 25.1 to 41.8 percent year on year. As for auto industry, benefited from such policies as deducting the tax on purchasing the1.6-liter and below passenger vehicles, in the first half of 2009, the aggregated auto output in China is 6.23 million sets, up 16.4 percent year on year, and the production and sale volume has exceeded 1 million sets for successive four months, among which the production and sale volume of the1.6-liter and below passenger vehicles increased by 34.9 percent year on year.

Speed up industrial structure adjustment and spare no efforts to boost transformation and upgrade

Although the machinery industry witnesses a continuous, steady and mild recovery on the whole, in view of the overall situation, if the whole industry expects a persistent and rapid growth, what must to be done is to speed up industrial structure adjustment and boost transformation and upgrade further.

The average annual growth rate in China's machinery industry has kept over 20 percent for successive six years, which is a special phenomenon in the special historical period of China's industrialization accelerating. Industrial rapid growth is not supported by the output, but based on the increasingly increased market demands. The international financial crisis cuts down the market demands and makes lots of problems in the development of machinery industry exposed.

The enterprises in machinery industry shall transfer their overmuch focus on the output of main units to the deep development of localization. So-called equipment independence does not only require pushing main units towards localization, but also advancing the synchronized development of basic parts and general components and parts. China's machinery industry is still very weak in many basic links and technologies on components and parts.

To realize technical equipment independence is an important way to improve the competence of equipment manufacture industry and fulfill industrial sustainable development. The market demand on China's equipment products witnesses a large quantity and a broad range; therefore, it is absolutely possible to realize equipment independence by means of independent research and development or foreign technology introduction and self-digestion. In allusion to such traits as difficult technologies, long cycle on research and development and mass trials for important technical equipment, verification and persistent consummation must be carried out in the actual application and application department's active participation and support is indispensable.

The enterprises in machinery industry shall also transfer their excessive dependence on machinery processing and manufacture to focus on developing modern service industry. Nowadays, the modern manufacture service industry is still in the primary stage in China, lagging far behind developed countries. The value realized by China's manufacture service industry has not taken a large proportion yet in the whole industrial economy, the field range that the manufacture service industry is involved has not been broad enough, and the development level of the enterprises is also uneven. To develop China's modern manufacture service industry is to expedite the transfer from production-oriented manufacture to service-oriented manufacture, which is also an important part in expediting the independent innovation and structural adjustment in China's equipment manufacture industry.

Generally speaking, in the second half of 2009, if the machinery industry is to consolidate the basis of recovering production and operation, it not only needs to depend on the drive of the government's RMB4-trillion-yuan-valued investment, but also needs to activate nongovernmental investment to add investment on enterprises in multiple channels. According to the statistics, since this year, the investment on the fixed asset in machinery industry shows a robust growth. RMB433.6 billion yuan has been invested from January to May with a year-on-year increase of 46.22 percent, which is obviously higher than the growth rate of 38 percent in the same period last year.

What deserves to notice is that with such a high increase, an inappropriate investment orientation will easily lead to an overmuch outspread in capacity, which will make the contradiction of oversupply sharpened. At present, in hot product fields such as autos, large-sized water press, power transmission and transformation equipment, wind power equipment and engineering machinery, the risk is accumulating. Thus, what the enterprises in machinery industry shall pay much attention to is to adjust investment structure, earnestly prevent blind investment in general processing capacity, and endeavor to improve the independent capability on such weak links as components and parts, and basic technologies to reinforce the basis of industrial revitalization.

http://en.ce.cn/Insight/200908/13/t20090813_19773169.shtml

Last Updated on Friday, 14 August 2009 09:48