How to Seize Opportunities for Compressor Companies in the New Normal

In the past 2014, the revenue from the main business of the general machinery industry only increased by 6 to 8%. Although it is said that as a huge market with a volume of trillions of dollars, even a zero growth is still sufficient to support a large number of companies, but after all, At the same time, it means that the growth of the industry has continued its downward trend in recent years, and it has dropped to single digits for the first time. It has been more than 30 years since the reform and opening up began. The basic equipment for many installations in China has also been overhauled or replaced. The transformation process needs the support of general machinery, so it provides opportunities for companies in the industry. At the same time, the demand for energy-saving and emission-reduction and transformation has become increasingly urgent. Zhang Yubao once said to the media that the transformation is to do energy conservation and emission reduction. For general machinery, this market will not only exist for a long time, but also have unlimited potential. Therefore, whoever can seize this opportunity is particularly important. Zhang Yubao cited an example: “In the past, when natural gas was collected, the natural gas that was produced along with the oil was often burned, which was not only wasteful, but also caused environmental pollution. However, if a separation device is built at each well, double Pipeline transmission, investment is too large, but now the "oil and gas mixed" technology and equipment can solve this problem.Normally speaking, pumping liquid with a pump will damage the life of the equipment, the same, when the compressor is afraid of gas With liquids, new technology has changed the situation.Today, with oil and gas mixed technology and equipment, only the pump or compressor is needed at the wellhead, and the pumped mixture is transported to a centralized station through a pipeline. To a certain amount, separate it again.” This technological advancement not only improves the efficiency of energy use, but also reduces pollution, seemingly in line with the requirements of the “new normal” for economic development.
The so-called new normal, Zhang Yubao believes that the specific performance of the market demand is saturated, the growth rate of growth slows down, excess capacity needs to be gradually digested, and so on. “Under the new normal, entrepreneurial thinking changes is very important.” Zhang Yubao said: “Now the market The demand has become reclusive, and the boss must be able to seize the opportunity.” Indeed, from the 2014 situation, the key enterprises in the industry have experienced relatively large declines. The increase in output value and profit has all fallen below 6%, and some companies have even emerged. Negative growth. And occupying the entire general machinery market 60, 70% of the amount of large-scale products, it is increasingly fierce competition. Obviously, under the new normal, in order to find new opportunities for development, companies must find hidden demands that are lurking under the facts. Just like Steve Jobs designed the Apple, first of all, the product is positioned in the "mobile phone to change human life" and not just limited to the "communications tool" itself, so IPhone after the birth of a revolution, mining the needs hidden in the customer's heart to take the initiative . This is probably the first step for a company to grow into a “specialist”.
After finding the right position, companies will have to work hard to upgrade technology and innovate. “Enterprises should develop towards personalization. In Germany, not all companies can become Siemens, but many small and medium-sized companies are at a high level. They are pursuing the ultimate in segmentation.” Zhang Yubao believes that Chinese companies Should also try to do some technical content is high, and there is a certain degree of difficulty in the product, so as to form their own "personality." In fact, in the general machinery industry, there are already some companies quietly devoting themselves to the goal of "specialty." Jiangsu Jintongling Fluid Machinery Co., Ltd., established in 1993, is one of the pioneers. Jin Tong Ling's main product is blower/compressor. However, as an enterprise with natural ambition, he does not want to do only a large amount of products. The company’s position on itself is: a technology-intensive modern high-end equipment manufacturing service company integrating R&D and manufacturing. In the 20 years since its founding, Jin Tongling has successively developed many new products, such as small and medium-sized centrifugal compressors and magnetic bearings. High speed blower and so on. On November 23, 2014, the largest domestic centrifugal steam compressor developed by Jin Tongling was successfully tested at the Nantong production base. This product can be used not only in the industrial field, but also in environmental protection projects such as high concentration sewage treatment. practical. Jin Tongling will continue to improve the level of technology as a pursuit of their own, and has gained market recognition, can be regarded as setting a good example of "special expertise." However, from the point of view of the general machinery industry, such companies are still too few.
Zhang Yubao can also understand the difficulties of the company, after all, innovation is not simply a matter of touching the top and bottom, it requires a long time manpower, energy and capital investment. "With the promotion of aggressive mechanisms, many companies already have a sense of positive innovation and increased investment in innovation. However, everyone's level of test and development is not enough, resulting in unsatisfactory R&D results." Zhang Yubao's helplessness: "Many tests are To pay a heavy price, for example, Shengu spent a lot of money building a professional test bench in Yingkou for localization of 100,000 air-to-air air compressors, and most companies in the domestic general machinery industry do not have such capabilities. "But even so, companies still have to make their best efforts within their own capabilities, because the benefits of upgrading technology and realizing innovation will last longer than they have paid." According to statistics, the annual import volume of medium and high-end general machinery in China is about 15 billion US dollars. This does not fully include the sales of foreign-funded enterprises based in China. If this market can be won, it will inevitably give enterprises a huge opportunity. At the same time, if Chinese-made products can reach international advanced level in terms of quality, technical content, and services, then companies can go abroad, look for opportunities in the world market, and withdraw from the domestic competition in the Red Sea. Even from a macro perspective, this is very much in line with China's strategy of "going out of energy equipment."

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