After more than 10 years of continuous rapid growth, China's valve industry has ranked first in the global valve manufacturing industry in terms of output. But with the global post financial crisis and the slowdown in China's macroeconomic growth rate, this situation of years of rapid development will change. Due to the slowdown in domestic economic growth and the impact of the post international financial crisis, the demand for valve markets both domestically and internationally has generally decreased, and various uncertain factors have increased. The development of enterprises has encountered many new problems, which have hindered investment and development in the valve industry, and valve products have also come with it. With the reduction of orders, the development speed of China's valve industry has significantly slowed down.

Therefore, a brief analysis of the operating situation of China's valve industry and the main factors causing the slowdown in its growth rate, as well as how to create new directions for the development of the valve industry, is not comprehensive enough and is only for reference.

1、 Overall industry performance in 2014:

According to statistics, in 2014, the production and sales growth rate of valve enterprises nationwide was moderate. 1750 enterprises above designated size (with an annual sales revenue of 20 million yuan), with total assets of 191.5 billion yuan, a year-on-year increase of 8.01%; The production of valves reached 10.31 million tons, a year-on-year increase of 0.05%. The growth rate has significantly decreased compared to the previous year, and the annual production has maintained a stable growth trend. Realized a main business revenue of 257.7 billion yuan, a year-on-year increase of 5.66%, a decrease of 7 percentage points compared to the same period last year; The total profit achieved was 18.3 billion yuan, a year-on-year increase of 4.57%, a decrease of 8.33 percentage points compared to the same period last year; Accounts receivable amounted to 42.2 billion yuan, a year-on-year increase of 6.84%; The completed export delivery value was 37.1 billion yuan, a year-on-year increase of 5.4%.

According to the Valve Branch of the China General Machinery Industry Association, there were 127 key valve member enterprises participating in the statistics in 2014, and 25 enterprises with a total industrial output value exceeding 500 million yuan.

In 2014, 127 key member enterprises of the Valve Branch achieved a main business revenue of 33.761 billion yuan, a decrease of -0.75% compared to the same period last year, and achieved a total profit of 3.082 billion yuan, a year-on-year increase of 0.40%; The completed export delivery value was 44.81 billion yuan, a year-on-year increase of 0.79%.

2、 The main factors contributing to the current slowdown in the valve industry's growth rate

After more than 60 years of development, the valve industry in China has more than 8000 domestic valve enterprises, but most of their products are homogeneous and low-end. one side. Many domestic petrochemical projects have slowed down investment and started construction, resulting in a decrease in demand for valve products due to a decrease in new projects; On the other hand, due to the sluggish global economy, there is a shortage of export valve orders. In the past, PetroChina, Sinopec, and CNOOC used networked procurement, but now they have changed to centralized procurement within the framework. A large number of petroleum and petrochemical valve products are controlled and monopolized by dozens of enterprises, invisibly making it difficult for other enterprises to enter the framework and reducing the sales of valve products.

The significant "dumping" of national oil prices directly leads to insufficient operating rates of oil equipment. The supply-demand relationship is the core factor affecting the changes in the oil market, and it has also brought about a downturn in the valve equipment market, with global crude oil prices hovering at low levels. The decline in international oil prices has also led to a significant contraction in profits in the petrochemical industry. These factors have all affected the sales of valve products and are one of the factors slowing down the development of the valve industry.

If oil prices cannot rise above $60 per barrel and remain stable, the global oil equipment market may continue to be sluggish, leading to an impact and downturn in energy demand for valve equipment.

Driven by interests, some companies do not pay high attention to technology. The company's technological research and development capabilities are becoming increasingly weak, the level of skilled workers has not rapidly improved, people lack patience, and the company's culture, management, and skills lack inheritance. Some companies appear to be busy on the surface, and they are all low-end products with unsatisfactory returns. meanwhile