At present, the concentration degree of the pump industry in China is not high, and the entire industry has not yet formed enterprises with absolute advantages. The competition among enterprises is very fierce. In the tide of industry consolidation, the following trends may occur:
Traditional state-owned enterprises have gradually declined and the situation is worrying. Once upon a time, many of the star companies in the pump industry that were extremely popular were mostly out of sight. On the one hand, the decline in the output of conventional products and general-purpose pumps is very serious, and many have fallen to less than a quarter of the original production volume; on the other hand, high-tech pumps and special pump products formed in recent years have also been ordered. Insufficient production capacity led to a large number of idle.
On March 22, 2004, the case of the Xiangtan Electric Machinery Co., Ltd., which had been negotiating for three years, was finally settled after the acquisition of the Changsha Water Pump Plant. The latter was formally acquired by Xiangtan Electric Corporation and became a holding subsidiary of Xiangdian Electric. This move also created a precedent for upstream motor companies to merge state-owned large-scale pump companies. In China's water pump industry, there have been long-term "Northern Shenyang, Southern Changsha," said the news, not only make people think hard. It should be said that the inflexible system and backward management are the key factors leading to this situation. The reform of the system is undoubtedly the key to solving the problem. For traditional state-owned enterprises, only by changing the mechanism as soon as possible and increasing the competitiveness of the market can we strive for greater development space.
Emerging private enterprises have increasingly become the backbone of the market. The earliest start-ups of many private enterprises in Jiangsu and Zhejiang have emerged in spite of their scientific and flexible operating mechanisms and sound and comprehensive sales networks. In today's pump market, the number of private enterprises is far greater than the number of state-owned enterprises. The output value of private enterprises is also far greater than that of state-owned enterprises. According to the latest statistics, the output value of state-owned enterprises and state-controlled enterprises accounts for only about 30%, private enterprises account for more than 50%, and the enterprises with the middle-year output value of pump enterprises are already private enterprises. It can be said that private enterprises are officially established as the mainstay of the industry and the backbone of the market, and will play an increasingly important role in the future development.
Foreign (joint venture) companies quickly followed suit. In the pump industry, many of the world’s giants in the pump industry have set up locations in China. Founded in 1871, Germany's KSB Corporation, one of the three largest pump manufacturers in the world, established a joint venture in Shanghai in 1995; the global water pump manufacturer Denmark Grundfos Group was founded in 1945, also in 1995. In December of this year, it was registered and established in Suzhou Industrial Park with a total investment of US$20 million. In 2000, it was founded in 1872, and Wiley-Samson (Beijing), the largest pump company in Germany and a wholly-owned subsidiary of Wilo Pumps in China. Water Pump Systems Co., Ltd. opened in Beijing. ITT Flygt, the world's largest fluid and water treatment company and pump giant, established a wholly-owned enterprise in Shenyang in 1996. This is one of ITT Flygt's five global advanced production bases.
The prospects for SMEs are slim. Since traditional pump products are labor-intensive products and the industry's threshold is not high, thousands of small and medium-sized enterprises are distributed throughout the country. The survival of these small enterprises is mostly dependent on a larger enterprise, and some places There has even been a situation where "one enterprise is a pump and all people are pumping." Many of these companies are "three nos" companies with no technology, sales network, and after-sales service. They are forced by the pressure of survival and driven by profits. They often pay no attention to product quality and services, and rely on cost and price advantages. Take profit in chaos. For many small and medium-sized pump companies, it is inevitable that they will eventually be eliminated.
Traditional state-owned enterprises have gradually declined and the situation is worrying. Once upon a time, many of the star companies in the pump industry that were extremely popular were mostly out of sight. On the one hand, the decline in the output of conventional products and general-purpose pumps is very serious, and many have fallen to less than a quarter of the original production volume; on the other hand, high-tech pumps and special pump products formed in recent years have also been ordered. Insufficient production capacity led to a large number of idle.
On March 22, 2004, the case of the Xiangtan Electric Machinery Co., Ltd., which had been negotiating for three years, was finally settled after the acquisition of the Changsha Water Pump Plant. The latter was formally acquired by Xiangtan Electric Corporation and became a holding subsidiary of Xiangdian Electric. This move also created a precedent for upstream motor companies to merge state-owned large-scale pump companies. In China's water pump industry, there have been long-term "Northern Shenyang, Southern Changsha," said the news, not only make people think hard. It should be said that the inflexible system and backward management are the key factors leading to this situation. The reform of the system is undoubtedly the key to solving the problem. For traditional state-owned enterprises, only by changing the mechanism as soon as possible and increasing the competitiveness of the market can we strive for greater development space.
Emerging private enterprises have increasingly become the backbone of the market. The earliest start-ups of many private enterprises in Jiangsu and Zhejiang have emerged in spite of their scientific and flexible operating mechanisms and sound and comprehensive sales networks. In today's pump market, the number of private enterprises is far greater than the number of state-owned enterprises. The output value of private enterprises is also far greater than that of state-owned enterprises. According to the latest statistics, the output value of state-owned enterprises and state-controlled enterprises accounts for only about 30%, private enterprises account for more than 50%, and the enterprises with the middle-year output value of pump enterprises are already private enterprises. It can be said that private enterprises are officially established as the mainstay of the industry and the backbone of the market, and will play an increasingly important role in the future development.
Foreign (joint venture) companies quickly followed suit. In the pump industry, many of the world’s giants in the pump industry have set up locations in China. Founded in 1871, Germany's KSB Corporation, one of the three largest pump manufacturers in the world, established a joint venture in Shanghai in 1995; the global water pump manufacturer Denmark Grundfos Group was founded in 1945, also in 1995. In December of this year, it was registered and established in Suzhou Industrial Park with a total investment of US$20 million. In 2000, it was founded in 1872, and Wiley-Samson (Beijing), the largest pump company in Germany and a wholly-owned subsidiary of Wilo Pumps in China. Water Pump Systems Co., Ltd. opened in Beijing. ITT Flygt, the world's largest fluid and water treatment company and pump giant, established a wholly-owned enterprise in Shenyang in 1996. This is one of ITT Flygt's five global advanced production bases.
The prospects for SMEs are slim. Since traditional pump products are labor-intensive products and the industry's threshold is not high, thousands of small and medium-sized enterprises are distributed throughout the country. The survival of these small enterprises is mostly dependent on a larger enterprise, and some places There has even been a situation where "one enterprise is a pump and all people are pumping." Many of these companies are "three nos" companies with no technology, sales network, and after-sales service. They are forced by the pressure of survival and driven by profits. They often pay no attention to product quality and services, and rely on cost and price advantages. Take profit in chaos. For many small and medium-sized pump companies, it is inevitable that they will eventually be eliminated.
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