The machinery industry has a good prospect of overcoming difficulties
Entering the year of 2022, the machinery industry has got off to a good start. Construction machinery operation rate and workload are picking up, overseas sales continue to perform strongly, the overall production and sales of automobiles increase slightly year-on-year, and passenger cars maintain a steady growth momentum.At present, China’s economic development is facing triple pressure of demand contraction, supply shock and weak expectation, which still restricts the smooth operation of machinery industry.Chen Bin, executive vice president of China Machinery Industry Federation, said in an interview with our reporter that for machinery industry enterprises, we should pay more attention to innovation and provide good products and high-tech products for the market, so that enterprise profits can be improved and enterprises can develop better.Unfavorable factors are expected to ease recently, Sany Heavy Industry co., Ltd. ningde Times held fujian Province electric conversion heavy truck application demonstration commissioning ceremony.The funing trunk line, the first electric heavy truck trunk line in China, was officially put into operation, marking another key step for SANY in the field of new energy construction machinery.Xiang Wenbo, chairman of Sany Heavy Industry, told reporters that from April 2021, the construction machinery industry has entered a period of adjustment, but also full of hope.Sany’s overseas sales rose nearly 60% in January, with new energy sectors such as wind power equipment growing even more.In the past year, the machinery industry has overcome difficulties and recovered steadily despite the spread of the epidemic, rising raw material costs and chip shortages.In 2021, industries related to strategic emerging industries in the machinery industry will achieve cumulative operating revenue of 20 trillion yuan, up 18.58 percent year-on-year, Chen said.Green and low-carbon development was accelerated, and the digitalization and intelligent transformation of the machinery industry was accelerated.At the same time, thanks to the effective prevention and control of the epidemic at home and the rapid restoration of production order, machinery enterprises take the initiative to seize the opportunities in the international market.In 2021, the foreign trade of the machinery industry continued to grow at a high speed, with the total import and export volume reaching $1.04 trillion for the year, exceeding $1 trillion for the first time.The export performance of finished cars, complete construction machinery and other products is particularly outstanding.Chen Shihua, deputy secretary general of China Association of Automobile Manufacturers, said that in 2021, the export volume will exceed 2 million units, and the export areas will expand from Southeast Asia and Africa to European countries.The Central Economic Work Conference defined the general tone of “putting stability first and seeking progress while maintaining stability.” Relevant departments have introduced a series of policies and measures to stabilize the industrial economy and moderately advance infrastructure investment. Work has begun on major strategies, projects and projects that have been specified in the 14th Five-Year Plan.For the machinery industry to provide a good macroeconomic basis and stable market demand.Xiang is confident about 2022.Confidence mainly comes from three aspects: one is the opportunity brought by major decisions such as the moderately advanced infrastructure construction, the other is the opportunity brought by the electrification of new energy products under the “dual carbon” target, and the third is the great space for improvement in the international market.Chen believes that adverse factors affecting the economic operation of the industry, such as high raw material prices, tight coal and power supply, chip supply shortage, will be eased and improved in 2022.Comprehensive analysis shows that in 2022, the machinery industry is expected to achieve steady growth, industrial added value and operating revenue growth are expected to reach around 5.5%, the overall profit level will be the same as last year, and the import and export trade will remain stable on the whole.Profit level is still to be improved Although the machinery industry benefit index to achieve double-digit growth in 2021, but low profit margin is still a common phenomenon in the industry.Data show that the factory price index of the machinery industry in 2021 turned from negative to positive in the second quarter, and the increase was only 2.7% to the end of the year, far lower than the increase of raw material purchase price, affecting profits.In particular, from June to November 2021, the total monthly profits of the machinery industry declined for six consecutive months compared with the same period last year, and the total annual profit growth rate of the machinery industry was more than 20 percentage points lower than that of the national industry in the same period.The operating profit margin of the machinery industry was 6.19%, 0.62 percentage points lower than the national industry and 0.22 percentage points lower than the same period last year.By industry, the profit of construction machinery industry declined on the basis of the high base of last year;The profits of the other 13 sub-industries all increased year-on-year, but there was differentiation among them. The profits of machine tools and other civil machinery industries increased by more than 60%, while the profits of petrochemical general, heavy mining, automobile and internal combustion engine industries increased by less than 3%.It was revealed that due to fierce competition in the market, the pressure of rising costs is difficult to pass on to product prices, resulting in minimal corporate profits.Even the machine tool industry, where profit growth seems large, is still low.The rising cost of purchasing raw materials and the weak price rise of mechanical products lead to the decline in industry profitability, and the automobile industry is no exception.”The profit margin of the auto industry is also not high, and the new energy vehicle industry is mostly at a loss.”Chen Bin said that new energy vehicle power battery raw materials almost all rely on imports, raw material prices rose sharply, affecting the profitability of the car.Since 2021, the association has been calling for the establishment of national and commercial reserve systems to ease price fluctuations, and relevant authorities have been pushing for related work.Chen Shihua also said that the profit growth of the auto industry in 2021 is significantly lower than the revenue growth.Cost growth mainly comes from two aspects, one is chip, the other is raw materials.The rising price of raw materials leads to an increase of 1000 to 4000 yuan in the cost of cars, but in the fierce market competition, many car companies dare not raise prices.Although the development of new energy vehicles is fast, the overall scale is still small, and the cost of batteries is getting higher and higher.”Raw material prices have risen, which has had a big impact on industry profits.”Profits in the machinery sector rose by double digits at the end of the year, despite the monthly decline, Mr Chen said.The main reason is that the imported raw materials have been booked half a year in advance, and the impact of rising costs on profits will be more manifested in the first half of the year.To increase profits, the most important thing for an enterprise is to grasp opportunities and strengthen innovation.The green and low-carbon development strategy with the goal of “carbon peak and carbon neutralization” brings new opportunities for the transformation and upgrading of the machinery industry.Under the situation of low overall profit of machinery industry, the growth of energy equipment manufacturing industry of machinery industry in 2021 is significantly higher than the average level of machinery industry, and the total profit of the whole year is 245.349 billion yuan, with a year-on-year growth of 12.65%.At the same time, it also benefits from the active innovation and market opportunities of leading enterprises in the machinery industry.For example, Dongfang Electric Group and China Huadian signed the mainframe contract for the first independent G50 gas turbine demonstration project, which facilitated the independent application of major technology and equipment in China’s energy field.”The growth of the global economy will be driven by technology, which will constantly create new demand.”Xiang said that to achieve “progress while maintaining stability”, we must rely on “progress” to achieve the goal of “stability”, and comply with the requirements of the development of The Times.With the advent of digital and electric age, enterprises must deal with challenges with great courage and determination, and turn challenges into opportunities.From the perspective of enterprise operation, no matter which industry depends on scientific and technological innovation to enhance capacity.No matter how The Times change, users for cost-effective products demand will never change.Therefore, to create, lead and meet demand through innovation is the fundamental way for enterprises to deal with the cycle.In terms of how to create a good environment for innovation, Chen bin pointed out that central enterprises have the responsibility to take the lead in adopting domestic independent innovation products, especially long-chain enterprises in the industrial chain, and actively solve problems in the supply chain.At present, many central enterprises have taken up this responsibility.In addition, Chen shihua said to promote the integrated development of the industry and enterprises.Enterprises should have an industrial chain thinking and consider upstream enterprises. In particular, they should focus on cultivating domestic parts suppliers to stabilize the industrial chain and supply chain, which is of great benefit to the long-term development of the industry.