Speed up the capital of the valve industry to go out and ease the contradiction between internal supply and demand

Time:2023-02-20

Overcapacity "is not unique to China, any growth is limited, and after the individual's growth reaches its limit, they have to consume the excess energy originally used for growth to keep themselves from collapsing." Various industry associations take the lead in investigating and formulating an overall plan to resolve overcapacity, focusing on solving the problem of overcapacity in industries such as steel, shipbuilding and valves, which marks the opening of the curtain of "de-capacity". Learning from the mature experience of developed countries such as the United States and Japan, managing Chinese-style overcapacity will be a major and challenging issue.

In the 60s and 70s of the 20th century, in order to alleviate the excess capacity of the domestic manufacturing industry, Japan invested in developing countries and regions and adopted an investment strategy based on comparative advantages and in line with trade bias, gradually moving the relatively inferior industrial sectors outward. Since the mid-80s of the 20th century, affected by the appreciation of the yen, Japanese traditional manufacturing companies have accelerated overseas investment in countries and regions such as Asia and Chinese mainland, and transferred excess production capacity overseas. In this process, Japan not only formed a vertical division of labor between the home country and the investor country, driving its own technology and equipment exports, but also through large-scale overseas investment, its manufacturing structure has undergone tremendous changes, turning to the metal industry, chemical and mechanical valve industry with high value-added productivity, that is, forming a manufacturing structure with the heavy chemical industry as the core, forming a dual engine driven by the manufacturing industry.

After the rapid development of the valve industry in previous years, industrial capacity overexpanded, the market environment deteriorated, although the total demand has increased year by year, but far from keeping up with the growth of supply capacity, such as ball valves, gate valves, globe valves This product homogeneous competition is becoming increasingly fierce. The contradictions such as low product quality, key core technologies subject to people, backward industrial management level, lack of well-known brands, and extensive development methods that have long restricted the development of the industry have made the transformation and upgrading of the industry urgent.

This year, China's valve companies are facing an increase in export pressure, the profit level is declining, many valve companies have expanded exports to survive, valve product export amount is increasing year by year. Valve enterprises should strengthen technological innovation, shift from bias towards quantity and scale expansion to pay more attention to the pursuit of quality and efficiency, actively explore the domestic market (Shanghai pump valve market), and promote the benign development of China's valve industry. Other small and medium-sized valve enterprises limited by technical barriers can consider emerging subdivisions with large demand for valves such as floor heating manifold to enhance engineering supporting capabilities and increase the added value of valve products.

With the continuous development of valve technology, the application field of valves continues to expand, and the corresponding valve standards are becoming more and more indispensable. Valve industry products have entered a period of innovation, not only product categories need to be updated, but also internal management needs to deepen reform according to industry standards.

Therefore, through the process of reshuffling the enterprise, the person in charge of Shanghai Mingbao Valve feels that it is necessary to strengthen technological innovation, shift from bias to quantity and scale expansion to pay more attention to the pursuit of quality and efficiency, actively explore the domestic market, and promote the benign development of China's valve industry. Other small and medium-sized valve companies limited by technical barriers can consider emerging subdivisions with large demand for environmental protection valves and energy-saving valves to enhance engineering supporting capabilities. It is also possible to "go out" to produce, sell or export valve products locally in other countries, bypassing trade barriers in relevant countries. Actively creating external demand, accelerating China's industrial capital to go global, and actively promoting the "capacity export" strategy can not only alleviate the contradiction between internal supply and demand, but also bring new opportunities for the global development of China's valve enterprises.

Following the rave reviews of "home appliances to the countryside" and "cars to the countryside", the "

building materials to the countryside" launched by the Central Document No. 1 this year followed. Due to the export dilemma, many hardware companies began to consider "export to domestic sales", and the introduction of this policy can be described as a blessing.

Cabinet hardware meets favorable policies, strengthens technological innovation, and takes a low-carbon route

Building materials to the countryside provide opportunities for the cabinet and hardware industry

Industry insiders believe that in addition to providing huge business opportunities for cabinets, hardware and other related industries, building materials will also be conducive to industrial restructuring, accelerating the expansion of the market by advantageous enterprises and the withdrawal of backward production capacity.

It is reported that the products of building materials to the countryside must first comply with the relevant national regulations, have a certain scale, and be produced by regular manufacturers. Despite the low price, products with backward production technology and level will never be included in the scope of building materials going to the countryside. Therefore, building materials to the countryside is precisely to encourage the development of building materials enterprises with advanced technology, environmental protection and energy saving, and to reject low-process, high-pollution, high-energy-consuming products.

Cabinet hardware needs to strengthen technological innovation and pursue low carbon

China is

recognized as a major manufacturer of hardware products, and its background is that China's labor resources are abundant and cheap, but the products are low in technology, and need to be transformed from manufacturers to creators. First-class products are sold to Europe and the United States, defective products are sold domestically, and Chinese hardware enterprises need to produce their own products that master the core technology.

Nowadays, the cabinet industry and

hardware industry have appeared low-carbon heat, the future building will be more low-carbon, energy-saving, green and environmental protection. In the future, the construction industry will inevitably adopt a large number of new materials with low-carbon technology characteristics. The market demand for new energy-saving and environmentally friendly home building materials products will maintain a long-term growth trend. Not only cabinet enterprises, hardware enterprises are also bound to need to develop more energy-saving products through technological innovation, while increasing resource conservation and environmental protection, and strive to realize the transformation of industrial structure from energy-intensive to capital, technology and knowledge-intensive industries, and reduce the proportion of high energy consumption, high pollution and high convergence industries in the national economy.

At present, some domestic hardware enterprises have gradually developed from processing enterprises to independent innovation high value-added enterprises, positioned in "internationalization, specialization, technology-oriented, market-oriented", mainly export trade. Cabinet hardware suppliers should also pay more attention to brand building and technological innovation, and walk out of a new world in the context of expanding domestic demand.

An industry insider said: In the process of undertaking international industrial transfer, a large number of Chinese enterprises have achieved progress from small to large through OEM means, but OEM is only a specific historical stage of industrial development. Door and window hardware enterprises have achieved the improvement of technology and experience at this stage, but they have also paid the price of hard labor and resources, which is not the ultimate pursuit of enterprise development after all. To achieve internationalization of China's door and window hardware products and build a century-old enterprise, we must start from building a brand.

After entering the new century, China's door and window hardware industry undertook the great task of international industrial transfer, and quickly rose to the top in about 10 years, becoming the world's largest door and window hardware manufacturing country. But the brand has become the foundation and core of enterprise development, after more than ten years of rapid development, brand awareness in the door and window hardware industry has been unprecedentedly strengthened, building a brand has become the industry's insight into the core development strategy of building a century-old business.

"We have a brand, foreign buyers and big customers know us, they often come to purchase our products, we are also a gold supplier of a multinational company." "In the past, when talking about the importance of brand to enterprises, many heads of door and window hardware companies swore that they had a brand to treat OEM production as a brand, which was a vague understanding of some companies 10 years ago.

In fact, this can only show that China's door and window hardware manufacturing industry has a high level of manufacturing capacity after a period of accumulation, the manufactured door and window hardware products are no longer synonymous with low quality and low price, and the quality of the product has been recognized by international mainstream buyers and markets. But the improvement of quality and quality does not mean the ultimate victory of brand building. In the division of labor in the international market, Chinese door and window hardware enterprises still play the role of lower-level production and processor.

The reason is that although it has the ability to produce high-quality products, most of the time these products are provided to international brands through OEM or ODM, and the lack of brand has become a fatal defect for Chinese enterprises in international competition. It is undeniable that the OEM production method once allowed Chinese enterprises to complete the initial capital accumulation in a short period of time, but when the accumulation reached a certain level, this production method became a shackle and an obstacle for enterprises to move to a higher level.

At present, some domestic hardware enterprises have gradually developed from processing enterprises to independent innovation high-value-added enterprises, positioned as "international, professional, technology-oriented, market-oriented and mainly export trade." Door and window hardware suppliers should also pay more attention to brand building and technological innovation, and walk out of a new world in the context of expanding domestic demand.

Door and window hardware products, only with high-quality quality, can win the market, establish a good brand image. As the saying goes, it is easy to start a business and it is difficult to keep a business, if the quality of door and window hardware products cannot be improved, not only will the market be difficult to expand, which is not conducive to brand building, and even these stable markets that have been won after many difficulties will gradually be lost.

News source: China Industry Research Network

Keywords: Speed up the capital of the valve industry to go out and ease the contradiction between internal supply and demand

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