China’s Machinery Competitiveness In The Post-2021 Epidemic Will Increase

On January 27, 2021, Beijing time, the cumulative number of people infected with the COVID-19 worldwide exceeded 100 million. This day will be recorded in history with a special meaning. 100 million people! This is such a huge number, and it means that the virus has invaded about 1/70 of the human beings on Earth, which is shocking; this is an extremely sad number.

The world has now surpassed 100 million confirmed cases of the coronavirus. It’s a figure that seemed almost unimaginable 12 months ago. A year later, the pandemic shows little sign of loosening its stranglehold on billions of people’s everyday lives. Cases continue to rise sharply in some parts of the world, and every day the losses mount, as more people lose loved ones to Covid-19, lose a business or lose their livelihood. (Source From https://www.cnn.com/2021/01/26/world/coronavirus-100-million-cases-intl/index.html)

defeat covid-19

When Our Area Encounters COVID-19

Some time ago, two confirmed COVID-19 patients were found in Jinzhou, an urban area of Dalian, China. As public places were involved, the entire Jinzhou urban area quickly responded to the anti-epidemic measures and blocked the city. All citizens were isolated at home and not allowed to go out. All shops and businesses had to been closed. Medical staff and volunteers come to do nucleic acid tests and provide food to the door. The entire city suddenly pressed the pause button. After a month of hard work and cooperation, the city was safe and unblocked. Everything has returned to normal. I am very grateful to the government and medical staff for their contributions. Of course, they cannot do without the high degree of cooperation from the people. Due to the impact on customer orders during the quarantine period, we have to say sorry. At the same time, the Chinese New Year of 2021 is coming soon, and we take this opportunity to give everyone an early year. We hope you all go well in 2021, and the epidemic will pass soon.

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2021 Trend Of China’s Machinery Industry

From the perspective of revenue from the machinery industry, the impact of the epidemic in China in early 2020 is gradually decreasing. With the gradual recovery of overseas demand, we believe that China’s manufacturing industry will remain prosperous in 21 years, and the domestic machinery industry will continue to benefit from demand recovery.

Investment in the manufacturing industry is picking up, and demand for parts and processing equipment is improving:

During the epidemic, manufacturing revenue declined and inventory consumption weakened, which led to an increase in inventory. When industry revenue gradually picked up, the industry entered the stage of active inventory replenishment. From the perspective of the investment cycle, the industry’s current round of inventory replenishment took longer, resulting in parts and components Demand for general processing equipment is further improving. Industrial robots, warehousing and logistics equipment have shown a boom in 2020, and it is expected to continue in 2021.

The overseas share of enterprises is expected to increase further:

With the epidemic under control, overseas manufacturing demand has rebounded, but it will take time to fully recover overseas equipment supply. China’s machinery industry chain is the first to recover, and has formed a certain first-mover advantage in 2020. It is expected that in 2021, it is expected to further increase its overseas share and achieve both profitability and market position by relying on the technology and brand accumulated over the years. We are optimistic about the increase in income of export + consumer machinery companies.

High-end manufacturing is a long-term development context:

With the rising labor costs in China, the manufacturing industry will gradually move to the two ends of the smiling curve, generating higher added value in terms of technology and brand, and the upgrading of equipment is also an important basis for the upgrading of the manufacturing industry. With the continuous R&D investment of industry chain enterprises, the competitiveness of high-end casting and other related equipment and products will continue to increase.

cnc machining service

New Changes In The Machine Tool Market

The machine tool industry has transformed from product specialization to market specialization

A. The market demand has shifted from relying solely on investment to taking both investment and consumption into consideration.

For example, from the past mainly serving heavy and chemical industries such as energy, steel, and equipment manufacturing, to providing services in many fields such as 3C, new generation mobile communication technology, new energy vehicles, medical equipment, semiconductors, etc., the demand relationship has occurred. change.

B. The supply mode of the industry has changed from batch to customization.

From the past product orientation to the market orientation focusing on providing solutions and professional services, the supply mode has changed.

C. The role of the industrial chain has shifted from demand realization to demand creation.

From the previous passive follow-up approach to solving user needs, to the joint pre-research of new needs and new processes with mid- to high-end users, that is, to truly become the user’s “technologist”.

D. The manufacturing system is shifting from discrete automation to full system intelligence.

The gradual loss of demographic dividends, difficulty in recruiting companies, and rising labor costs have forced industry companies to transform and upgrade to digital and intelligent manufacturing, that is, in-depth solutions to problems such as diversification of demand levels, individualized demand and consumption, and the development of enterprises themselves.

Looking forward to 2021, the recovery and development of China’s machine tool industry are supported, mainly due to the following points:

  1. China’s overall anti-epidemic work has achieved remarkable results, and the economic recovery speed of various industries is far ahead of the world.
  2. The new development pattern of dual cycles will strongly promote the development of the machine tool market.
  3. Various policies and measures in response to the epidemic have continued to be effective.
  4. The automobile manufacturing industry has rebounded strongly, and the market demand of the machine tool industry has increased.

Now that countries around the world are accelerating the development of 5G, every country is aware of the importance of the Internet, so the rapid development of the Internet has promoted the development of major cross-border e-commerce platforms. The impact of the epidemic has prompted major cross-border e-commerce platforms around the world. , Entering a new stage of rapid development.

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