Description of the three major unfavorable factors in the development of the submersible pump industry

In the past ten years, China has been encouraging the export of submersible pump products. The performance and quality of submersible pump products in China have been recognized by the international market.
    Although the labor price of China has risen in recent years, the renminbi continues to appreciate, and the price of China's export products has also increased accordingly. Compared with products from developed countries such as Europe and the United States, China's well submersible pump products still have obvious cost-effective advantages. The sales price is several times the price of similar export products in China. With the development of the submersible pump industry in China and the improvement of the production process, the technical content and quality of the products are continuously improved, and the export prospects of the submersible pump products are broad.
The unfavorable factors for the development of China's pump industry are as follows
(1) There is still a certain gap between the overall technical level of the industry and foreign advanced enterprises.
There are many production enterprises in the submersible pump industry in China. Most of the enterprises have small production scale, extensive operation, insufficient R&D investment, relatively backward technology and equipment, no economies of scale, poor product quality stability and no risk resistance. Strong. Through a number of well-developed and accumulated submersible pump companies in the industry represented by the company, the product quality and technical level have been greatly improved, actively participating in the competition in the international market and having a certain market share, and the independent brands have also gained a certain degree. The development, but compared with foreign advanced enterprises, China's well submersible pump production enterprises still need to improve in terms of production and sales scale, technical level and innovation ability.
(2) Fluctuations in upstream raw material prices and rising labor costs
In recent years, the prices of major raw materials such as enameled wire, silicon steel sheet and copper parts required for the production of submersible pumps have fluctuated, and the labor cost has been rising, which has brought certain adverse effects to the development of the submersible pump industry, but the internal part of the industry. Advantageous enterprises continue to reduce production costs through technological improvement and large-scale production, and with the increasing market recognition and brand awareness, their ability to transfer costs downstream is also increasing, which can alleviate upstream raw material price fluctuations. The pressure to come.
(3) The rise of the RMB exchange rate puts pressure on exports
At present, China's well submersible pump production enterprises are actively participating in the international market competition, and occupy a large market share in the international market with better cost performance. For export-oriented companies, product exports are generally settled in US dollars. In recent years, the renminbi continued to appreciate. At the end of 2011, 2012 and 2013, the appreciation of the renminbi against the US dollar was 4.86, 0.24% and 3.00% respectively compared with the end of the previous year. The appreciation of the renminbi has weakened the price advantage of China's well submersible pump exports to some extent.