Instrumentation industry trends: will enter a new period of development

The instrumentation industry has shown a trend of rapid development in recent years. A statistical data from the China Instrument and Meter Association shows that the production and sales of China's instrumentation industry continued to rise after two years of high growth. In the first half of 2007, the total output value of China's instrumentation industry was 133.5 billion yuan, up 29.1% year-on-year; product sales revenue was 1289. 100 million yuan, a year-on-year increase of 30.7%, are at historically high levels; profits increased by more than 40% year-on-year, and the total value of assets increased by about 18% year-on-year. The industry as a whole is in a benign development stage.
    To this end, the reporter interviewed the special consultant of the China Instrument and Meter Industry Association, Jia Jiacheng, and asked him to talk about the development of China's instrumentation industry. Qi Jiacheng told reporters that "there are more people paying attention to the instrumentation industry. The national policy support is increasing. There are more enterprises willing to invest in the development of instrumentation. There are more local governments setting up the instrumentation industry development zone. China's instrumentation industry Entering a new era of development."

    Four major characteristics of industry development in the first half of the year

    The product demand structure has changed significantly. There are many products involved in the field of instrumentation. The industrial automation instrumentation and control system still maintains a high growth rate that is greater than the growth rate of the whole industry. The production and sales increase by 34%, reflecting that China is still in the high-speed development period of energy and heavy chemical industry, but the growth rate is 38% compared with the previous year. The decline indicates that structural adjustments in applications such as thermal power and metallurgy have had an impact. Environmental monitoring instruments increased by 40% year-on-year, reflecting the need for environmental protection, energy conservation and emission reduction for related instruments. Optical instruments, supply instruments, testing machines, geological exploration and seismic special instruments, teaching instruments and other products have basically maintained the industry's average growth. Electrical instrumentation, surveying and mapping instruments, test and analysis instruments, automobile instruments, navigation, meteorological and marine instruments, nuclear measuring instruments, electronic measuring instruments, timing instruments, weighing instruments, medical instruments, etc., are lower than the industry average, and some of them have stable demand. The production capacity is too large; some products have large technological gaps, and the middle and high-end products market is occupied by imported products, and the structural adjustment problem is obvious.

    The regional rankings have quietly changed. Large cities such as Beijing, Tianjin and Shanghai used to be the birthplace and concentration of China's instrumentation industry. The conditions are good and they are among the best in the long run. With the adjustment of the regional industrial structure, although the foundation is good, but the growth is not fast, in the first half of this year, around 10%, the production and sales scale of Beijing and Shanghai has retreated to the fifth and sixth place in the country. The Soviet Union, Guangdong, Zhejiang, and Shandong were later in the past, and the output value has surpassed Beijing and Shanghai. The foreign capitals of Jiangsu and Guangdong provinces are gathered, and the instrument and meter industry accounts for a relatively large proportion. It has already jumped to the first and second places in the provinces and cities of the country. In recent years, Zhejiang private enterprises have developed rapidly and have formed regional industrial clusters. The large-scale production of large-scale products has formed a large-scale production, as well as a model of industrialization of high-tech achievements, ranking third in the country.

Exports grew rapidly and imports increased little. In the first half of the year, China's instrumentation industry exports increased by 36.4%, industrial automation instrumentation systems, electronic measuring instruments, testing machines, experimental analytical instruments, medical instruments, etc., all of which increased by more than 40%. In the past, industrial automation instruments and electronic measurements with small export volume were small. Instruments and other increases were as high as 76.9% and 104.5%, and some products such as pressure/differential pressure transmitters, semiconductor component testing and communication instruments, precision balances, spectrophotometers, and X-ray inspection instruments have grown exponentially. In traditional export products, except for the increase of 65.5% in water meters, the increase of electricity meters, gas meters, optical components, telescopes, microscopes, thermometers, etc. is not large. Import growth has fallen to 7.2%. Optical instruments, most electrical instrumentation, and medical instruments have turned negative. There has been progress in independent innovation and breakthroughs in major engineering applications. Digital oscilloscope, spectral absorption type contaminated gas fiber detection system, pesticide residue on-site detection device, voltage and current transformer on-site verification device, 10000kg electric vibration experiment system, automatic shaft type straightening machine (measurement and processing integrated equipment), three-phase multi-function Standard electric energy meter, environmental multi-channel atomic fluorescence spectrometer, virtual microscope system, X-ray real-time imaging detection system, full-drilling instrument, process analysis complete system The first batch of scientific research and new product projects were successfully developed and began to enter the industrialization stage.

    What is particularly exciting is that the distributed control system, as an important product in the instrumentation industry, has continuously made breakthroughs in national key projects.

    In January 2007, the distributed control system developed by Beijing Guodian Zhiyuan Company was successfully put into operation in the 600MW subcritical unit of Longshan Power Plant in Hebei Province and entered commercial operation. In August 2007, it was again in the 600MW supercritical unit of Zhuanghe Power Plant in Liaoning. Successfully put into operation. Zhejiang Zhongkong's decentralized control system with independent intellectual property rights was successfully bid in the 300,000 T synthetic ammonia/520,000 T urea project of Lunan Fertilizer Plant; in April 2007, it signed another 5 million T/year to Sinopec Wuhan refinery project. The main unit provides a control system. The above breakthroughs will effectively break the monopoly of foreign companies on important instrumentation, control devices and automation systems in national key projects.

    The growth rate will slow down in the second half of the year

    In the second half of the year, the instrumentation industry continued to trend in the first half of the year. Demand and production and sales were still at a high level, but the growth rate will slow down slowly. It is expected that the annual growth rate of production and sales will be slightly higher than the previous year or basically flat. As the instrumentation industry's macroeconomic response is relatively indirect and lagging behind, the growth rate of some products will fall in the next year. In the overall stable development trend in the second half of the year, the following characteristics will be achieved:

    Industrial automation instruments and control devices and environmental monitoring and analysis instruments are the fastest growing, and the growth of other instruments and meters will not change. Under the policy of implementing circular economy, environmental protection and emission reduction, high efficiency and energy conservation, and “big and small pressure”, the demand for instrumentation and instrumentation for medium-sized devices such as thermal power, metallurgy and building materials and “five small enterprises” will be significantly reduced. The large-scale, complex and new application areas of industrial devices and the demand for their devices will cause domestic enterprises to face many problems such as product technology level, application adaptability, and entry barriers. Foreign companies have comparative advantages and will have an impact on the market structure. . There are two different situations in which corporate profits are changing. On the one hand, some enterprises have increased labor productivity and increased profit margins due to increased production proficiency and increased product technology content. On the other hand, raw material prices, labor and utilities have risen. Due to exchange rate changes and other reasons, many product costs have risen. The middle and low-end products with excessive production capacity are increasingly competitive between domestic enterprises, medium and high-end products between foreign-funded enterprises and between foreign-invested and domestic enterprises. There are signs of decline. The state of "export growth is fast, import growth is small" will not change in the second half of the year. From the high growth of exports that have lasted for many years, the foundation is the improvement of technology and the acceleration of industrial development. Another important factor this year is the response and response of enterprises to the macroeconomic situation. Both foreign-funded enterprises and competitive enterprises in China are using existing facilities and increasing exports to cope with the possible slowdown in the domestic economy. In the first half of the year, the export delivery value accounted for 28.6% of the total industrial output value, an increase of 41.3% year-on-year. In fact, the industry-wide growth rate was higher than that of the same period of last year, mainly due to export growth, and the growth rate of the domestic market was basically flat. In the export, the foreign-funded production is on the rise. Due to the disparity in the base of imports and exports, the import and export deficit will still be as high as 8 billion US dollars, but this year may be the first year of the decline in the import and export deficit of instruments and meters since China's reform and opening up.

    When it comes to the breakthrough of China's instrumentation industry in major projects, Yan Jiacheng vividly called it "going ahead in hardships", and the promotion and improvement of instrumentation has been put on the agenda. The application of important instrumentation and control systems in major projects will be from point to point. The breakthrough products will be expanded from DCS to other important products, from single products to wider fields and more complex devices, and breakthrough products have been promoted. Further improvement of its level will be the focus of work in the second half of the year.

    It is gratifying that the National Development and Reform Commission, the Ministry of Science and Technology and other competent departments have continuously strengthened their support for high-tech and industrialization of instrumentation, control systems, and intelligence in accordance with the spirit of the 11th Five-Year Plan and the State Council Document No. 8. The support for this field is clear and the approval of the project is accelerated. Large thermal power DCS, large petrochemical DCS, nuclear power meters, high-precision pressure/differential pressure transmitters have been approved or have been submitted for approval. A number of intelligent instrumentation, control systems, printing A, wireless communications, scientific instruments research and development projects have been established, and some have been implemented. Units with significant influences such as Guodian Group, Sinopec, PetroChina and Yankuang Group are actively taking measures to promote the application of domestic instrumentation and control systems in major projects, and to study increasing investment and supporting their research and development and industrialization. Chongqing, Tianjin, Shenyang, Ningxia, Hunan and other provinces and cities are combining the development of the region to study and adopt measures to support the development of the instrumentation industry.