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Negative Factors for Chinese Valve Industry

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Negative Factors for Chinese Valve Industry
Latest company news about Negative Factors for Chinese Valve Industry

Valve is an important mechanical part in production lives. It has been widely applied in industries. However, imbalanced development still exists in Chinese valve industry at present. Under good Chinese environment and development prospect, various negative factors are existing.

Favorable factors
1. Good prospect
With valve technologies constantly developing, the application of valve is also expanded continuously. Relative valve standards are also more and more indispensable. Valve products have already entered into an innovative period. Not only product categories needed to be replaced, but also enterprises need to reform its internal management deeply based on industrial standards.

With the steps of recombination in valve industry constantly accelerating, the future competition in valve industry will be the competition of quality safety and product brands. Valve products will develop into high technology, high parameters, strong corrosion resistance and long service life. Under condition of large demands, Chinese valve industry will show extremely good development prospect. So, it is necessary to make full use of current standards, expecting future and figuring out new standards and systems which can be used in future, promoting valve technology to develop to higher level further.

2. Chemistry, energy becomes new growth points for valve market
For a long time, the demands for valve in energy industry are always keeping a solid and steady growth rate. Total generated energy of constructive thermal power plants and nuclear power plants around the world is 2, 679, 030MW. Generated emerge in the U.S. is 743,391MW. Generated energy of newly adding plants in other countries is 780,000MW. In the next few years, generated energy will grow by 40%. Europe, South America and Asia especially Chinese energy market will become new growth points for valve market.

Chemical industry ranks the first for output value exceeding than 1.5 trillion dollar which is also one of the largest demand market for valves. Chemical industry mostly uses industrial valves having mature design, high processing quality, made of rare materials. In recent years, competition on chemical market is becoming more drastic. Valve manufacturers have to cut off cost expenditure when facing with competition.

Negative factors
1. Lacking of talents
Lacking of talents has already become a bottleneck to limit Chinese valve industry to further develop. The development of valve industry is indispensable of the investment on high quality talents. It is necessary to learn how to distribute and use talents scientifically, making full use of talents. Besides, pay attention to cultivate talents. The development of industry cannot be shortage of talents. Every productive operator should consider how to maintain stability of staff troop. Development of age and advancement of technology are shown by innovation. Only constant innovation can maintain competitive for of industrial development.

2. Drastic market competition
Valve is a product having low rate of profit. The market competition is very drastic. At present, Chinese valve industry is labor-intensive industry. Chinese valve industry still concentrates on expanding quantity. Foreign market is also active in recent years and the competition is also intense. Import and export of valve in East Asia and Southeast Asia grow rapidly. Market trade between developed countries such as North America and EU develops constantly. The export in Germany, Italy, Japan and China is expanded. Import in the U.S., UK, France grows highly. All of them form supporting point to support flourishing international valve market. In addition, for further globalization of global economy, transnational corporations will constantly promote international valve market to develop. Localization of international trade will become another feature. Although more and more valve products on international valve market come from China, decision-making power on international valve market is not held by Chinese enterprises.

3. Backward products and imbalanced development
Improving level and grade of valve products are the priority of Chinese valve industry in the future. Recession in the whole valve industry leads to backward valve products in China, which is also an important factor to limit Chinese valve products to develop. Previously, government launched West-East Natural Gas Transmission Project. Amounts of Chinese valve enterprise missed the opportunity. Besides environment factors, other factors such as low marketization process, low professionalization and small market scale also become the bottlenecks to limit valve industry to develop.

For Chinese valve industry, valve industry in inland also falls behind than costal. Valve industry in inland has low starting point, small scale, low professionalization and poor marketization, which enhances gap between costal, which results in imbalanced development in Chinese valve industry.

4. Bad competition
Bad competition exists in industry. For example, partial operators modify and renovate waste valves for secondary sales, bringing serious potential risk to project quality, badly disturbing order and seriousness on valve market.

Pub Time : 2019-06-04 16:57:01 >> News list
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