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Thursday, October 25, 2012

Is the winter of Wire and Mesh industry coming for China?


Even though the 12th Five-Year Plan put emphasis on the development of energy conservation, new energy and other industries, the upstream spare parts manufacture of these industries are optimistic. Companies expect state more support. At the same time, benefit that other types of parts manufacturers could obtain from the plan remains to be seen.

Although the wire machine machinery manufacturing enterprises in China in recent years are rapid developed due to the growing market demand, the profit is limited in the whole industry chain. 

According to industry sources, China's CNC wire machine enterprises take the production mode of purchasing spare parts from foreign manufacturers and for assembly, thus the sales price of complete machine is very low in domestic market, and therefore lead to the profits of Chinese enterprises much lower than foreign competitors. This situation tells us that we must strengthen the upstream industry of wire mesh machine manufacturing, among which the basic spar parts industry should be focused attention. 

As for research and development ability, recently companies mainly depend on their own investment in R & D, getting little support from the state. Many wire mesh machine companied are still waiting for a refined policy and specific implementation, they are expecting revive plans to be implemented.

A spare part is usually small, but often requires high technical level; our companies can not produce those components, so we must rely on imports. Some of China's basic components, such as hydraulic fittings, is still depends on the international market, its drawback is already appeared. In the first half of this year, sales of excavator has been in explosive growth, but the supply of spare parts can not keep up with demand, thus leading to a rapid decline in sales in the second half of this year. 

In addition, the current domestic production of bearings and other spare parts on a technical level have little difference with the imported products, but the misunderstanding has become a stumbling block for further development. Part of the wire machine enterprise should be overcome the stereotypes of imported spare parts are much better than domestic made ones.

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