Weakers with weak profitability should not actively seek change

Abstract Holding the power and taking the initiative as the judgment and choice of the majority of enterprises in the machinery industry on the current market situation. The situation is pressing according to the statistics of the key enterprises of China Machine Tool Industry Association. From January to June 2014, the total sales of all enterprises...
Take the initiative and take the initiative

This is the judgment and choice of the majority of enterprises in the machinery industry on the current market situation.

The situation is pressing

According to the statistics of the key enterprises of China Machine Tool Industry Association, the total sales revenue of all enterprises in January-June 2014 decreased by 2.6%. Among them, metal cutting machine tool product sales revenue decreased by 7.7% year-on-year; metal forming machine tool product sales revenue increased by 4.3%.

According to the economic operation data of the National Bureau of Statistics for the same period, the main business profit rate, accounts receivable turnover rate and asset-liability ratio of the machine tool industry are 5.5%, 4.6% and 54.1%, respectively; the above three indicators of metal cutting machine tools The three indicators of metal forming machine tools were 5.8%, 4.2% and 54.3%, respectively.

What is the concept of 5.5% and 3%? Chen Huiren, executive vice president and secretary general of China Machine Tool Industry Association, said at the 2014 annual meeting of the Heavy Machinery Branch Branch held in August that this shows that the profit rate of the main business of the whole industry is lower than the one-year lending rate. Even lower than the one-year fixed deposit rate, reflecting the serious decline in the industry's profitability.

Sustained losses are the internal cause of this situation. According to the National Bureau of Statistics, from January to June 2014, the loss-making enterprises in the machine tool industry accounted for 13.8%, and the losses of China's holding companies accounted for 41.8%. Among the eight sub-sectors, the largest loss is metal cutting machine tools, accounting for 24.7% of loss-making enterprises, and its holdings in China accounted for 50.8% of losses.

For the current situation, Chen Huiren believes that information can be obtained from the recent hot topic "new normal", which means that China's economic growth rate will be guaranteed within a certain range, and other economic factors are allotted around this indicator. This is China's economy. Develop a new normal state.

For the current state of economic development, there is also a reference to the "three-phase superposition" period, the third period is the economic growth shift period, the structural adjustment pain period, and the previous stimulus policy digestive period. These three periods are superimposed together to be the current Chinese economy. The latest features of the development phase.

The specific performance is that the economic growth shift period is that the economic growth rate should be shifted from the previous high-speed growth (about 10%) to the current medium-high speed growth (7%~7.5%); the structural adjustment pain period is due to structural adjustment. There is a trade-off, and it is necessary to pay for the elimination of backward production capacity. This is an inevitable pain in the economic transformation and upgrading. The digestive period of the previous stimulus policy indicates that there is a clear understanding of the negative effects of the previous large-scale investment. Side effects of the stimulus policy.

Chen Huiren said that the macroeconomic situation directly affects the development of the machine tool industry. Although the machine tool industry is engaged in microeconomics, it also needs to have a new understanding of China's current economic development stage. This is the general direction for enterprises to determine their development strategies. It is important.

Specific to the machine tool industry, he believes that it can be summarized by "overall stability." First, in the past few years, the industry operation was in the process of violent decline, and it is still falling, but the decline has narrowed, which is a gentle decline.

Second, import data fell by only 0.2% in the first half of 2014, almost unchanged. Compared with the increase or decrease of about 20% of the import of machine tool products in 2012 and 2013, it indicates that the market demand is no longer drastically declining and has basically stabilized.

Although the overall operation has stabilized, the industry's anxiety is still strong. The reporter can also feel their pessimism when talking with a number of machine tool companies in a recent interview. I don’t know when it’s the bottom, it’s the common conclusion.

Active change

However, it is gratifying that the industry has almost reached a consensus that the current state of the machine tool market is not a short-term process and may become a "new normal."

During this period, it is impossible to rely on the bitterness of "熬". Chen Huagui, chairman of Jack Machine Tool Co., Ltd. said that the crisis is different from that in 2008. If it is like an earthquake in the past, companies can save their strength and wait for rescue. This time, the situation is much more complicated and comprehensive. In essence, it is a surplus of production capacity. It is a process of squeezing bubbles. Enterprises must take the lead in self-help.

He believes that although the competition in the enterprise has increased due to the market downturn, it has never reached a tragic level, and at most it is more uncomfortable.

"If a group of people in a battle goes up, there are hundreds of people who can retreat. It is absolutely not terrible."

He believes that in the past, the home appliance industry had 20,000 companies at the most, and now there are absolutely fewer than one hundred. After the big waves of this time, China's home appliance industry is now fully competitive. He said: The industry is not competitive, and in the final analysis, the competition is not strong enough. The same is true for the Chinese machine tool industry, and the integration of shuffle is inevitable. However, the transformation and upgrading of the industry is not to let most enterprises go bankrupt, but to allocate their respective superior resources more reasonably, and to better distribute the advantages of enterprises in all aspects of the industrial chain.

"Some companies are shuffled out of the whole machine, but they can get a chance to survive and develop on their parts." Chen Huagui said that after many home appliance companies were eliminated, many companies focused on a certain part or It is the production of parts, which completes the upgrading and transformation of the industry through market adjustment.

In Chen Huiren's view, the driving force for the stable operation of the machine tool industry comes from the initiative of the enterprise. In this round of industry restructuring, although the specific conditions of the enterprises are different, almost all enterprises have different perspectives in the transformation and adjustment. With varying degrees of effort, the effect of implementing a transformation and upgrading strategy has gradually emerged, which is also a source of stability in the industry.

He believes that the current corporate response to the structural market downturn is divided into three levels:

The first is to increase the intensity. This level involves all aspects of the company's work, such as strengthening management, reducing costs, paying close attention to quality, and seizing the market. This is a common measure taken by enterprises in response to the market, and it is also an instinctive response of enterprises to the market crisis. It is only an increase in strength.

The second is to change the "playing style." For example, the “Quality Responsibility Traceability Mechanism” under the Ningjiang Machine Tool is committed to increase the monitoring cost at each link before the product leaves the factory to facilitate traceability. In addition, Kunming Machine Tool sent technicians to the user workshop to study for a few months, in-depth study of the user's manufacturing process, and design production line plan with the user. These practices that truly guarantee product quality and design production lines from a user's craft perspective are more targeted than increased efforts.

The third is to reposition the company strategically. In the new market environment, companies must reorganize their strategic positioning, which markets do companies need to serve, and how to establish their own unique advantages in the locked market?

Nowadays, a common situation in the industry is that the strategic convergence of industry enterprises leads to product convergence, and the result of product convergence is vicious price competition, which in turn leads to low-end melee and high-end industry failure.

Chen Huiren believes that to change this situation, we must change the traditional style of product specialization in the past high-speed economic growth environment, and take the road of market specialization.

This is mainly based on the current status quo, that is, whether it is equipment suppliers in the aerospace industry or equipment suppliers in the field of automotive engines, it is usually a few foreign-funded enterprises that are familiar to them. The common feature of these enterprises is the professionalism in a specific market. The degree is very high.

In his view, there are almost no such large-scale enterprises specialized in the market, but some small private enterprises have such market specialization performance, but they are unconscious and forced, they put this The business positioning is explained as survival in the "sandwich".

However, it should be emphasized that while realizing the individualized market strategy of the enterprise, the industry as a whole must implement a differentiated strategy, otherwise it is a new strategic convergence.

Seals For Agitators & Reactors

Mechanical seals under [SEALMANN" trademark, apply the advanced design concepts and the latest
achievement of material development and have been proven by large number of successful
applications, through the advanced manufacturing technics, testing methods and strict quality
assurance system and efficient service support, with the characteristics of high reliability, high
stability, long life, and high performance cost ratio. [SEALMANN" has become the first choice for
customers.

Seals For Agitators & Reactors,Rubber Bellow Mechanical Seal,Dry Running Agitators Seals,Single Balance Liquid Agitators

Ningbo FLK Technology Co., Ltd. , https://www.flk-global.com