Machinery and equipment industry transformation and upgrading into an inevitable trend

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Recently, when discussing the development of the machinery and equipment industry, it was generally believed that the high growth of the machinery and equipment industry in 2010 was mainly due to the country’s macro-control policies to stimulate domestic demand and increase infrastructure construction. With the far-reaching effects of the international financial crisis, the country’s 4 trillion yuan investment plan is drawing to a close, and the market demand for domestic infrastructure construction is showing a downward trend. Judging from the situation in foreign countries, economic recovery in Europe and the United States and other countries has been slow, overseas purchases have been difficult to increase, coupled with the appreciation of the renminbi and continued domestic inflation, leading to a decline in the competitiveness of domestic machinery and equipment.

It is predicted that with the change of the entire macroeconomic environment of the country, the growth rate of the machinery and equipment manufacturing industry may slow down in the next five years. Relevant person in charge said that in the past 10 years, China's average annual GDP growth rate has reached over 13%, and the “Twelfth Five-Year Plan” will be the beginning of a new round of cycles. The next five years will no longer emphasize the growth rate of GDP, and the national economy will increase. The rate will fall to around 7% and 8%, and it will be difficult to maintain double-digit growth. Under this background, how should the machinery and equipment industry cope with this change and complete the transformation? This is a bigger issue for the industry.

It is expected that the growth of the machinery industry will mainly depend on the country’s expansion of domestic demand. Therefore, the overall trend of the industry this year must be based on the adjustment of the country’s macroeconomic policies and how to tilt the development of the real economy. This year, the machinery industry will show a trend of low, high, and high, and the advantages of the company will be even more pronounced, and the “polarization” of the company will become more apparent.

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