“At present, this form is more severe than the form of the financial crisis in 2008 and 2009. One of the troika that drives China’s economy is foreign investment. The EU is the world’s largest economy and is China’s largest trading partner. The EU is deeply The debt crisis not only affects the instrumentation industry, but also affects all sectors of the industry in China.The second is real estate, which accounts for 30 percent of China's GDP. The current downturn in the property market has also had a certain impact on China's economy. In addition, China's slowdown in infrastructure investment, steady monetary policy, and insufficient domestic demand have caused certain pressure on our instrumentation industry."
This remark was made at the 2012 multinational exhibition. When the China Instrument Network reporter interviewed Mr. Li Pingye, vice president of sales of Hongqi Instrument Co., Ltd., Mr. Ye told us. During this period, the Chinese instrument network reporter also interviewed the person in charge of a number of instrumentation companies on this issue, and the answers are much the same. It can be seen that the Chinese instrumentation industry, like many other industries, had a hard time in 2012. However, we have also seen a happy moment in the crisis.
Instrumentation and Instrumentation Industry Undergoes Downward Pressure Recently, Ji Jiacheng, Honorary Chairman of the China Instrument and Meter Industry Association accepted a media reporter and said that due to the impact of the macro economy at the beginning of the year, the production and sales of the instrumentation industry decreased by 12.8% and 14.1% year-on-year, respectively, accounting for more than the entire industry. One-for-one industrial automatic control device was affected by the weak demand from the industry. Its growth in the first half of the year was lower than the average of the industry by 3 to 4 percentage points. Earnings at the beginning of the year increased by -14% year-on-year, which was lower than the 13.7% in January-February 2009. This is the lowest point of the century.
According to the first half of the China Machinery Federation’s operation report, from January to July 2012, the growth rate of production and sales in the instrument and meter industry in the country was slow year-on-year, and the growth rate was lower than that of the same period of last year. The export growth rate increased year-on-year, and the growth rate was stable. From January to July 2012, the total industrial output value of the instrumentation industry in the country totaled RMB366,225 million, a year-on-year increase of 15.13%; the sales value achieved was 355,132 million yuan, an increase of 15.14% year-on-year. The cumulative year-on-year growth rate of teaching-specific equipment manufacturing, nuclear and nuclear radiation measurement instrument manufacturing shows a negative growth of negative 11.46% and negative 36.30%, respectively.
Based on the above data, we can see that China's instrumentation industry is entering a medium-speed development area after more than a decade of high development. Although the hard cost of raw materials, components, etc. has steadily declined slightly, the rising trend in labor costs has stabilised; credit conditions have improved; corporate income has eased; fiscal investment such as adjusting structural stability has gradually been implemented, and demand has been slowly rising. The development of the instrumentation industry has improved, but due to the impact of the economic environment, it will not be much improved in a relatively long period of time, and the instrumentation industry is experiencing downward pressure.
Looking for Opportunities in a Crisis While we are seeing these pessimistic data, we must not look at another set of data. Scientific instruments such as analysis and testing still maintain an increase of more than 20%. Currently, the production and sales are in good condition and the increase may reach more than 20%. Enterprises account for about 10% to 15%; small growth is about 50%; and currently, about 1/3 of negative growth areas. The profit margin of the leading products of some outstanding enterprises exceeds 50%, the net profit of enterprises exceeds 15%, and the service business such as engineering integration and software reaches 35%.
It can be seen that although China's instrumentation industry is currently facing a crisis, the demand for scientific research and test equipment from technological innovation remains strong, but the pattern of medium-to-high-end equipment mainly reliant on imports has not changed; at the same time, it involves people's livelihood, culture, education and other meteorological and oceanographic activities. The growth of special instruments such as geological exploration, agriculture, forestry, animal husbandry and fisheries, culture, education, and medical care has also been rapid. In addition, a group of enterprises with high technological content, good industrialization results, and incapable expansion of production capacity have a dominant position in the market due to high-end products and attention to modern enterprise management. They can rely on technological progress and services to recapture the market from foreign companies.
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