As a supplier of parts, pump and valve companies have a lot to do with the development of industries such as real estate, construction, industry, and engineering projects. In recent years, due to factors such as the country’s favorable investment environment and the deepening of intensified infrastructure construction policies, the Chinese pump and valve industry has ushered in opportunities for sustained high growth.

However, the Ministry of Industry and Information Technology (hereinafter referred to as "Ministry of Industry and Information Technology") recently announced to the society that the 18 industrial sectors eliminated the list of backward production capacity companies, the steel industry is also "listed on the list." Steel, the raw material of pump valves, will face a risk of production cuts, and the pump and valve industry has been greatly affected.

The increase in raw material prices and lower profit margins ? Today, as environmental pressures increase, the steel industry with high pollution and high energy consumption needs to be transformed. However, to a certain extent, the elimination of backward production capacity will also result in production cuts due to restrictions on production capacity. Analysts believe that in the steel industry, a reduction in production will lead to an increase in steel prices in the short term, and this will result in higher costs for the pump and valve industry, leading to short-term price fluctuations in the pump and valve industry.

It is reported that since the beginning of this year, the stainless steel industry has encountered an unprecedented "cold stream", and the output value of many companies has shrunk by at least 60% year-on-year. In order to ensure sales, the pump valve industry can only adjust the market price and reduce the profit margin.

Not only that, from the development status of the pump and valve industry, the development trend of the pump valve industry itself is also facing the risk of eliminating backward production capacity. It is understood that as a basic mechanical part of the pump, compared with the host, the company's initial capital and technical investment to establish a production line is relatively small. Through the market promotion in recent years, the manufacturers of China's pump and valve industry have rapidly increased, the production level has been greatly improved, and the output of pump valves has also increased significantly. However, what is more embarrassing is that small and medium-sized and private pump and valve companies have rapidly increased in this process and account for a large proportion. On the contrary, there are fewer large-sized pump and valve companies, and the brand name of the pump and valve industry is relatively poor, compared to foreign pump valves. Products, China's valve products have poor market competitiveness.

As of the end of 2009, there were 803 franchised and concurrently operated pump manufacturing enterprises above designated size in China, 889 valve manufacturers and 20,000 small and medium-sized enterprises, resulting in vicious competition such as price wars and shoddy goods. As well as waste of resources, high-risk operations and other adverse consequences. The valve industry is in urgent need of restructuring and adjustment.

The fierce financial crisis came to dominate the survival of the fittest . Under the impact of the international financial crisis, the market has shrunk sharply. For iron and steel, construction, and its upstream and downstream industries, it is undoubtedly a "cold air," a pump that depends on the development of these industries. The valve industry is also a bad news. However, people in the industry have discovered that although the financial crisis has caused a certain degree of negative impact on the Chinese pump and valve industry, it has also exposed the internal defects of the industry and has improved under the market economy system.

Recently, Wenzhou Fastener Industry Association found in a survey of companies in the industry that the fastener industry with more than 3,000 companies three years ago is now only more than 2,000. All along, low, small, scattered is one of the important features of the fastener industry in Wenzhou. A large part of the family-run enterprises lease private houses for production and rely on price war to occupy a small part of the market. However, in recent years, as raw material prices have been rising all the way, small businesses cannot afford the cost increase. At the same time, with the continuous expansion of Wenzhou City, more and more private houses have been demolished and many small businesses have lost their production sites. The advent of the financial crisis has played a role in fueling the situation. Therefore, most of the nearly 1,000 small companies that have “disappeared” have been integrated into larger enterprises.

Industry insiders pointed out that thanks to the financial crisis, the Chinese pump and valve industry started to implement internal and external wins and elimination of the fittest due to reduced orders and rising raw material prices. Some of the backward production capacity was stripped from the industry, making the industry “lightly loaded” and winning better. Expansion capacity.

Export level needs to be improved

In the broad domestic market of China's pump and valve industry, the export market was slightly "slim." It is understood that the total annual sales of China's pump and valve industry can reach hundreds of billions of yuan, but exports have a negligible ratio. Pump and valve export companies located in Zhejiang, Jiangsu, Shanghai, Sichuan and other places export most of their products. The brand production or low value-added products are the main products, and the export volume is relatively small. The product brands have not been able to form influence in the international market.

In this regard, experts pointed out that to develop the international market is different from the domestic market, pump valve export companies should have two conditions: First, the export of the product in the material selection, testing, product function and delivery time must meet the requirements of the international market Second, marketers can accurately understand the international market and quickly and accurately transfer market demand information to the company.

It is understood that in 2009, the global valve and pump market demand maintained the level of 2008, industrial valve sales reached 47 billion US dollars. It is expected that market demand will increase by 3% this year. The Chinese market will show strong growth momentum, of which the market for replaceable gate valves for thermal power plants is already twice that of the US market, accounting for more than 30% of the global market. In addition, the global pump sales this year will also maintain the level of 32 billion US dollars last year. Among them, the sales revenue of centrifugal pumps accounts for the largest proportion; the sales revenue of rotary pumps will be slightly higher than that of diaphragm pumps; the sales revenue of circulating pumps will be slightly lower than that of diaphragm pumps. From the perspective of the international environment, although the added value of China’s current pump valve products is relatively low, China’s pump manufacturer only needs to increase its technical R&D efforts and develop high-yield products. The export potential of this market is therefore very large. .