Instrumentation industry is facing difficulties

Foreign investment is approaching

Although the total statistics of instrument and meter statistics in 2014 have not yet been released, according to the data from January to November, Yan Zengxu concludes that the total revenue of the entire instrumentation industry in 2014 will exceed 850 billion yuan, or 880 billion yuan, and the total profit will be maintained. 700 to 750 billion yuan. If we can continue to maintain a steady pace of development in 2015, by the end of the twelfth five-year period, the total output value of the instrumentation industry will reach or approach one hundred billion yuan!

Compared with other industries in the mechanical industry, such as construction machinery and heavy machinery, the development of instrumentation is relatively good. Even in the past two years, known as the “cold winter period” of the machinery industry, the entire industry has not experienced great ups and downs, and many companies still have a good life. According to Yan Zengxuan, one of the reasons why instruments and meters can achieve such achievements is the industry nature of “small-volume, multi-variety, professional dispersion”. There are a wide range of products and a wide audience. As the saying goes, “The East is not bright. bright".

At present, the most serious problem in the entire industry is the import and export trade deficit that has long plagued instrumentation. “The instrumentation has always been a large deficit in the entire machinery industry,” he said helplessly. “The overall trend is that imports have been increasing. It is estimated that there will be no major changes in a short period of time.” Although the industry’s exports are also relatively small Last year, there was an increase. Although there are factors to ease the global economic situation, it needs to be explained that foreign-funded enterprises in China and domestic foreign-funded enterprises actually account for a large part of exports. As to how large this part is, it is currently impossible to carry out The exact quantification, but almost all multinational companies in the instrumentation industry have already established factories in China, especially scientific instruments. In contrast, most of the exports of Chinese companies are still limited to a wide range of basic products.

However, this is actually a representation of the potential crisis in the entire industry. In the past, foreign brands were basically only mid- to high-end in China, but in recent years, those “tall” brands have gradually begun to penetrate the low-end market. “If foreign brands are similar to domestic products, it is certain that most users will choose to use foreign products.” Yan Zengxuan is worried about this.

Two development ideas

In response to this market situation, Yan Zengxuan put forward two possible development ideas and directions for enterprises in the industry.

The first is to increase the research and development of key technologies and key components of the product.

“Everyone is doing the whole machine, and almost no one is attacking core technologies and parts and components,” said Yan Zengju. “Everybody revolves around the original technology and products and cannot deepen it.” He believes that foreign industries are big. The group is also very few. Like China, there are many small businesses in the industry. However, the difference is that the entire industry's industrial chain is well-established upstream and downstream, and companies have their own characteristics and advantages. However, parts and components have always been the shortcomings of Chinese companies. We have devoted more time and energy to price competition. We have not conducted further research and development in accordance with market demand. The problem of homogenous competition and "internal consumption" has been highlighted. Under such circumstances, once foreign high-end brands really enter the low-end market, Chinese companies will undoubtedly face enormous competitive pressure.

“We have been calling for the need to nurture the backbone leading companies in the industry and foster a large number of specialized, refined and special companies,” Yan Zeng added. As a matter of fact, in the instrument and meter industry in recent years, all companies that have achieved results have invested a great deal of effort in technology research and development and basic foreshadowing, such as Central Control, Hollysys, etc., in the Automation Control System (DCS) and Wuzhong Instruments. Control valve, Hangzhou Concentration in the environmental testing and other impressive achievements, all due to hard work for ten years.

Especially at this moment, in the critical period of instrumentation, the entire industry ushered in a rare opportunity for development. Whether it is the further integration of advancement and integration, or the wave of “great development” of the upcoming high-end equipment manufacturing industry, it is in fact all Instrumentation industry is a great opportunity. For example, in discrete automation systems, China has long been dominated by foreign brands with a market share of nearly 95%, and the remaining 5% is only at the low end, but precisely this product category is precisely the “necessary equipment for high-end equipment manufacturing products”. "If there is a breakthrough in this area by enterprises, the future market prospects will undoubtedly be very broad. Yan Zengxuan revealed that there have already been a number of excellent companies that have begun to exert their efforts in this area, trying to achieve the goal of localization of discrete automation systems.

The second is cross-industry, cross-sectoral search for market opportunities.

Although the current development of the entire industry tends to be normal, potential crises must be taken seriously. After all, “the signs of overcapacity have appeared in individual companies,” according to Yan Zengxuan’s analysis. “Some people say that if the instrumentation doesn’t go through a big one, It's hard to get new development by shuffling. It's hard to judge whether it's right or wrong, but the current situation continues. According to the laws of the market, it may happen.” Although this kind of sign is more apparent now Certain product categories and individual companies, such as electric energy meters, automated meters, laboratory instruments, etc., have not become the main contradiction in the development of the industry. As long as companies respond in time and adjust development ideas as soon as possible, the industry will naturally emerge from the crisis and continue to improve. Going forward. However, due to the large number of companies, most of them are still small businesses, and the insights of the entire market change need to be improved. Therefore, most companies do not have a clear understanding of how to seek for future development opportunities and achieve transformation and upgrading.

In view of this, the association put forward the concept of “cross-border”. A simple explanation is to actively seek business opportunities across industries and regions. In the field of traditional equipment manufacturing, most corporate ideology in the instrumentation industry tends to be "traditional." The ability to exploit the market is certainly there, but it is still in those areas that are conventional. Yan Zengxuan believes that if the docking and cooperation can be realized, the entire instrumentation industry actually has unlimited possibilities from the development path, and the hidden danger of “overcapacity” will naturally be resolved smoothly.

For example, in the current robotics industry in Chaotou, the traditional concept is that there is not much correlation with instrumentation. Actually, in many links, products and technologies of the industry are required, such as sensors and automatic sample introduction technologies. Is the instrumentation company actively seeking cooperation? I am afraid most companies do not realize it. Today's era has already blurred the boundaries between industries. Many potential customers of instrumentation are scattered in various fields, such as agricultural machinery, light textile, and printing machinery. Each of the different industries and fields will have many different needs once the company targets them. One or even a few deep plowing successes will create their own unique competitive advantage.

"Of course, cross-border is easy to say, but it's very difficult to really do that," Yan Zeng said with a smile. "The first thing to do is to change the way of thinking. Companies need to go to these industries to take the initiative to find business opportunities." This is also one of the major goals of the industry association in the future."

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