Machinery industry will shift to medium speed development

Liu Weidong, chairman of the Shandong Machinery Industry Association, revealed on the 15th at the preparation work meeting of the 8th China Equipment Manufacturing Exposition in Shandong: “The days of the machinery industry this year have been tough, although the increase in production and sales of machinery industry in our province has stabilized and slowly picked up. However, it is expected that the low-speed operation will continue in the next two months.” Next year, the province’s machinery industry will continue its low-speed operation this year. From a long-term perspective, the machinery industry will shift from its rapid growth period to medium-term development.

Behind the gorgeous data, the status quo of the machinery industry, Liu Weidong immediately said a series of data: "From January to September, the province's machinery industry total output value, main business income, total profits and taxes, total profit and other major indicators ranked after Jiangsu, still Ranked second in the country, 11666 enterprises above designated size completed the main business income of 1708.057 billion yuan in the first three quarters, an increase of 12.46% year-on-year.”

Only gorgeous data still can't hide the hardships of the industry. Liu Weidong told the Economic Herald reporter that the overall downturn will continue throughout the machinery industry this year, especially in the engineering machinery, agricultural machinery, machine tool and other industries most affected. “According to real estate control policies and the deceleration of investment in railways and infrastructure construction, the economic growth rate of the province’s machinery industry declined more than that of production and sales. The situation of production and sales of key products was not optimistic. The rapid decline in the number of key enterprises and the growth rate of foreign trade exports decreased significantly. Machinery industry The fall in fixed asset investment has increased."

Liu Weidong revealed that although the country recently approved a series of large and medium-sized projects, it will take a certain amount of time to transfer the demand for construction machinery to the terminal. By the end of this year and even the first half of next year, the market will still be in a downturn.

New orders for the machine tool industry also showed a downward trend. Among them, the decline in orders for low-grade products is relatively large, and orders for heavy-duty and large-scale machine tools have declined significantly, especially for large-scale heavy-duty machine tools. For this reason, many machine tool manufacturers lowered their market expectations.

Unprecedented enthusiasm for participation “In the third quarter, the growth in the production and sales of the machinery industry has stabilized and slowly picked up, and the overall economic efficiency has declined substantially after a steady decline.” Liu Weidong told the Herald reporter that with the economy stabilizing, the machinery industry has also taken a breather.

According to reports, the total profit growth of the machinery industry's industry-wide industry has increased continuously from negative to positive in June, reaching 8.27% at the end of September, still lower than the 4.9% increase in main business revenue. From October, the machinery industry production has stabilized and picked up.

Liu Weidong told the Herald reporter that machinery enterprises facing uncertainties such as difficulties in production and operation, structural adjustments, and effective demand have been sluggish. As a result, they have begun to expand the market in multiple directions. “Machine companies showed unprecedented enthusiasm for the 8th Shandong Equipment Fair. Since the exhibition set up suppliers and buyers to negotiate links, it is possible for the supply and demand sides to get together. Some mechanical companies that know the information of professional buyers will register to attend the show early.”

Some enterprises actively applied for the national major technical equipment spare parts and raw materials import duty-free and other suitable for construction machinery industry policies, and various special support.

"There are 264 items of equipment that have been identified as major first sets of technical equipment. The total financial support for the funds is 400 billion yuan. 109 projects have been applied for this year, including 4 billion in excess of 4 million yuan and 46% in 5 million yuan. Each set of 13 million yuan." Liu Weidong said that this move also promoted the transformation and upgrading of the machinery and equipment manufacturing industry.

According to Liu Weidong, the relevant government departments of Jingxin, finance, science and technology, and land in our province will also form help groups to provide special assistance for technical reform projects and research and development projects carried out by machinery enterprises and provide support for the financing of machinery enterprises.