China's valve industry after 10 consecutive years of rapid growth, has been ranked in the global valve manufacturing output high, but with the global financial crisis and China's macroeconomic slowdown, this continuous years of rapid development of the situation will change. Affected by the slowdown of domestic economic growth and the impact of the international financial crisis, the domestic and foreign valve market demand generally declined, various uncertainties increased, and the development of enterprises encountered many new problems, hindering the investment and development of the valve industry, resulting in a corresponding reduction in the order quantity of valve products, and the development speed of China's valve industry has slowed down significantly.

To this end from the following aspects of a brief analysis of the operation of China's valve industry and the main factors of the valve industry slowdown, as well as how to create a new valve industry development, etc., not comprehensive, for reference only.

1. the overall operation of the industry in 2014:

According to statistics: in 2014, the national production and sales of valve enterprises grew at a moderate rate, with a total of 1750 enterprises above designated size (enterprises with annual sales revenue of 20 million yuan), with total assets of 191.5 billion yuan, up 8.01 percent over the same period last year. Production of 10.31 million tons of valves, up 0.05 percent over the same period last year. The growth rate dropped sharply from the previous year, and the annual production volume maintained a steady growth trend. The main business income was 257.7 billion billion yuan, up 5.66 percent from the same period last year, down 7 percentage points from the same period last year; the total profit was 18.3 billion billion yuan, up 4.57 percent from the same period last year, down 8.33 percentage points from the same period last year; accounts receivable was 42.2 billion billion yuan, up 6.84 percent from the same period last year; and the export delivery value was 37.1 billion billion yuan, up 5.4 percent from the same period last year.

According to the statistics of the valve branch of China General Machinery Industry Association, 127 key member enterprises participated in the statistics in 2014, and 25 enterprises with a total industrial output value of more than 0.5 billion yuan.

In 2014, the 127 key member enterprises of the valve branch realized a total of 33.761 billion yuan in main business income, down -0.75 from the same period last year, and realized a total profit of 3.082 billion yuan, up 0.40 from the same period last year. The export delivery value was 4.481 billion yuan, up 0.79 from the same period last year.

The main factors 2. the current slowdown in the valve industry

Our valve industry after 60 years of development, although the domestic valve enterprises about more than 8000, but most of the products exist homogenization, low-end. On the one hand. Many domestic oil and chemical projects investment and start have slowed, new projects to reduce, resulting in reduced demand for valve products; on the other hand, the world economy is also sluggish, export valve orders are insufficient. The original PetroChina, Sinopec, CNOOC to take the network procurement, now to the framework of centralized procurement, a large number of oil and petrochemical valve products by dozens of enterprises to control the monopoly, virtually making it difficult for other enterprises to enter the framework, reducing the valve product sales.

The sharp "diving" of national oil prices has directly led to the shortage of oil equipment operating rate. The relationship between supply and demand is the core factor that affects the changes in the oil market, and it also brings the downturn in the valve equipment market, and the global crude oil price is hovering at a low level. The decline in international oil prices has also led to a sharp contraction in the profits of the petrochemical industry. These factors have affected the sales of valve products and are one of the factors that have slowed the development of the valve industry.

If the oil price can not rise to more than $60 per barrel and remain stable, the global oil equipment market will continue to be depressed, bringing the impact of energy necessary valve equipment and downturn.

Driven by interests, some enterprises do not pay attention to science and technology, the technological research and development ability of enterprises is getting weaker and weaker, the level of skilled workers is not improving fast, people are impetuous, and the culture, management and skills of enterprises lack inheritance. Some enterprises are busy on the surface, but all they do are low-end products, and the benefits are not ideal. At the same time, the deepening of the government's anti-corruption has led to the suspension of production of some projects, the overcapacity of many enterprises and the shrinking of the consumer industry, which are the peripheral factors leading to this round of economic downturn. It also gives the valve entity industry a vicious circle of long-term homogenization and low-price competition. It does not seek quality and quality, and lacks technological innovation. The consequence is that the development of the valve industry has been sluggish in the past two years.

3. to create a new engine valve economic development

At present, the downward pressure on the valve industry economy is still large, and the production and operation of valve enterprises are facing many difficulties. In the increasingly fierce market competition, while the labor cost of enterprises continues to rise, in the face of serious overcapacity in the valve industry, accelerating the transformation of economic development mode is the only way to achieve sustainable development. The transformation and upgrading of industrial structure is a top priority for China's valve enterprises. With the implementation of scientific and technological innovation and development strategy, to create a new engine of economic development valve, stimulate the vitality of innovation and entrepreneurship, promote structural adjustment, accelerate the transformation and development, enterprises must increase investment in scientific research, improve innovation ability, focus on the development of high-end valve products, improve the localization rate of valve equipment.

Obviously, at present, China's valve industry has developed from high speed to medium and low speed, and has entered the stage of stable development, quality improvement and efficiency improvement at medium and low speed. The focus of the next period of work is the development of emerging industries supporting valve products. For example: coal chemical valves, LNG ultra-low temperature valves, nuclear power valves and long-distance pipeline valves.

At the same time, as long as we actively digest excess capacity, improve the technical content of products, and focus on developing new products, products will gradually transition from low value-added to high value-added, identify our own corporate positioning, keep up with the pace of the country's "Belt and Road", and develop both at home and abroad. In the market, focusing on product services, the successful transformation of the enterprise and the healthy development of the industry can be realized.