Manufacturing companies face great pressure for transformation and upgrading

The just-concluded China International Industry Fair is the largest industrial technology exhibition in China. More than 1600 Chinese and foreign companies exhibited at this year's Industry Fair, and the number of booths reached 6565. Both exhibitors and booths are historical highs. Industry is the main body of the real economy. The theme of the current Industry and Commerce Fair is “Innovation Transformation and Strategic Emerging Industries”. The reporter learned that most manufacturing companies have seen a rebound in orders in the second half of the year. At the same time, many business executives said that there is a lot of pressure on the development of the manufacturing industry. Continued transformation and upgrading are the way to victory, and it is a way to survive.

The number of orders for innovative manufacturing companies generally rebounded. According to data from the National Bureau of Statistics, the manufacturing PMI index reached 50.2% in October and returned above the critical point. Prior to this, the manufacturing PMI index for August and September were all below the critical threshold. The reporter interviewed at the Industry Fair found that the feelings of most industrial companies are basically in line with changes in PMI.

Metal cutting machine tools are the core of manufacturing, and their sales data can reflect the development of the industry. According to data from the National Bureau of Statistics, sales of metal cutting machines decreased by 16.6% year-on-year from January to September this year, which is the first time in 10 years that China has seen a year-on-year decline. However, the data also showed that the sales volume of metal cutting machines in September was the highest in the year, and the monthly sales decline rate was the lowest in six months. Feedback from the market also proved that the number of orders is still rising, and most industrial companies are optimistic about the fourth quarter of the market.

Wuhan Falilai is a well-known laser cutting machine manufacturer in China. Xia Kai, the sales manager of the exhibition, told the reporter that the machinery and equipment industry was not very good since the end of last year. A few years ago, it was able to sell three or four hundred machines a year. From January to June this year, it only sold more than 100 units. Orders increased in the second half of the year, and sales from July to October had reached about 100 units.

Cai Jin, vice president of the China Federation of Logistics and Purchasing, said that signs of steady economic growth in China have been further consolidated, supply chain economic activities have become more active, and macroeconomic fundamentals have been steadily improving. The economic growth rate in the fourth quarter is expected to rise moderately.

Innovation Drives to Become a Consensus of Enterprises Transforming and Testing Test Capability Although manufacturers generally report that the market is not as good as 2011, some companies can still achieve growth, and transformation and upgrading are their experiences of contrarian growth. Faced with increasingly fierce market competition, most manufacturing companies recognize the importance of transformation and upgrading, but how to achieve a smooth upgrade from traditional manufacturing to modern manufacturing, test the operating capabilities of each company.

Hebei CITIC Daica is a wheel manufacturer. Starting from the sales of automobile wheels, after 24 years of development, they have gradually become an automotive zero-part components enterprise group. Chen Xin, President of the Hebei Machinery Industry Association, briefed the reporter that CITIC Dicasta attaches great importance to the innovation and upgrading of its products and production technology. It not only meets the requirements for domestically-introduced models, but also achieves global support. While car companies develop new models, It is possible to research and develop supporting wheels simultaneously, and its products have also been recognized by famous automobile brands such as Mercedes-Benz, BMW, Volvo, and General Motors. Despite the overall poor manufacturing market this year, CITIC DiCair's products are still in short supply.

Chen Xin told reporters, “This year, the machinery industry is generally in a downturn, but this is actually a process of eliminating low-level production capacity. Really good companies and products will not only decline at this time, but will gain more market space. You help Customers have reduced their costs, improved their competitiveness, and naturally have gained market recognition.”

Long Xingyuan, chairman of Qinchuan Machine Tool Group, told reporters that Qinchuan Machine Tool Group's traditional product sales this year fell by about 40% year-on-year, but new product sales increased by more than 20% year-on-year. Long Xingyuan said: “For us, transformation and upgrading are not only the way to victory, but also the way to survival. Facing the impact of the 'returning' manufacturing industries in developed countries, if we cannot make timely changes and upgrades, it will be difficult for us to get rid of passive backwardness. This situation is a severe test for the operating capabilities of all its peers."