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Restricting the development factors of valve products in China

China's valve industry is in a very favorable development period and faces good development opportunities. However, in addition to low-pressure valves that meet the needs of the international market, high-pressure valves still rely on imports. Under the situation that the macro economy continues to be optimistic, the import and export of valve products in China has increased, but the competition in the international market is increasing, which has greatly reduced the sales revenue and profits of the valve industry. This is due to the existence of a certain gap between the domestic valve enterprises and foreign countries. The valve industry has a low starting point, small scale, low degree of specialization, and low degree of marketization, which restricts the development of China's valve products.
Vicious competition
The sluggishness of the entire valve industry has led to the backwardness of China's valve products. As China's valve market has basically formed a situation of state-owned, collective, joint venture, stock and individual private coexistence. In the fierce market competition, those manufacturers who are profit-oriented, do not hesitate to harm the interests of others to shoddy, disrupting the development of the normal valve product market.
Low starting point and small scale
At present, there are more than 5,000 manufacturing enterprises in China's valve industry. There are only 7 companies with annual sales income exceeding 50 million, 3 companies with more than 100 million yuan, and enterprises with more than 200 million yuan. This small-scale enterprise has a poor economic foundation and weak competitiveness. It is difficult to generate shock in the market, and it is more difficult to compete with internationally renowned companies in the same industry.
Low technical content
China's valve industry has been able to produce more than a dozen major categories of products. Although these products strongly support the domestic economic construction, it should be clearly seen that most of these products are general technical content or labor-intensive products, and rarely have international leading level, let alone competitive.
Single sales channel
At present, China's valve industry has a serious overcapacity, and about 40% of its production capacity is short-selling. Due to the homogenization of the sales channels of the domestic valve industry, the products are highly saturated, resulting in high sales costs, low profits, and lack of competitive advantage.
Low management
China's valve enterprise mechanism is not alive, the level of technical management is low, and there is a shortage of management talents. It is difficult to keep up with the pace of international standards. Under this circumstance, domestic valve enterprises have introduced advanced equipment and advanced technology from abroad, strengthened management, trained talents to arm themselves, and confront foreign companies.
“Multiple, small, complex and weak” is the status quo of China's construction machinery industry. Valve equipment as one of its branches is no exception. It lacks innovative products and its independent research and development strength is weak. This situation is true for the valve industry to enter the high-end market. It is a huge resistance.
In order to seek greater progress, the valve industry must strictly guarantee the quality of one of the valve safety valves, pay attention to the improvement and innovation of the valve technology, and produce products that truly meet the needs of customers. Deeply analyze the problems and deficiencies in the products, and actively find solutions to prepare for the long-term development of the company.

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