"Deep hidden merit and name" is the most appropriate description of compressor. Compressors are closely related to industrial economic production. Compressors are ubiquitous in national production. However, because they are general-purpose machinery, they cannot independently complete production tasks, and their perception is low. Therefore, although they are indispensable, few outsiders pay attention to them.
You can understand the economy if you understand the compressor
Compressor products have dual characteristics of industrial products and consumer goods. The rise and fall of this special industry echoes the rise and fall of all walks of life. It has always been regarded as a barometer and wind vane of the economy. Changes in the compressor industry can often reflect changes in the economic environment.
The reason why the compressor can measure the economic temperature is that there are many types of compressors, involving all walks of life, including traditional industries such as steel, petroleum, metallurgy, cement, coal, automobile, as well as emerging industries such as aerospace, high-speed rail, medicine and electronics. The increase, decrease or stop of production of enterprises can be seen from the operation of equipment, and the operation of equipment can not be separated from the compressor, so the increase or decrease of compressor demand of enterprises can directly reflect the business and production activities of enterprises.
Since 2011, although the overall sales volume of compressors in China is still growing, the growth rate of sales volume has slowed down. During this period, many enterprises suffered losses, contracted, and even stopped production and switched careers. What is reflected behind this is that since 2011, China's economic growth has slowed down and entered the new normal of medium high growth from the high growth period. Under the new normal, Chinese enterprises have entered the structural adjustment period of "capacity removal, inventory removal, leverage removal, cost reduction, and weakness compensation" from the previous scale expansion and speed expansion, which is undoubtedly a test for compressor manufacturers.
From the end of last year to this year, the market of compressor industry has risen sharply, which can obviously feel the recovery from the entire national economy. In the first half of the year, the sales volume of compressors generally rose by more than 50%, which is related to the implementation of the national "13th Five Year Plan" project, and also to the supply side reform and re release of capacity.
In addition, the change of economic structure can also be observed to a large extent from the change of compressor product structure.
On the one hand, the demand for compressors in the traditional manufacturing industry is declining, while the demand for compressors in emerging industries is rising, which reflects the change of the industry. For example, with the decline of coal power demand in the past two years, the country has carried out coal supply side reform, increasing the capacity to cut production, shutting down a large number of coal mines, reducing the output of hundreds of millions of tons of coal, and the market for mining compressors has also shrunk significantly, especially in several large coal resource provinces.
On the other hand, the demand for compressors with higher technical specifications and higher quality is rising, which shows that under the development trend of new industrialization, large-scale and refined equipment used by domestic industrial enterprises is gradually becoming the mainstream, and enterprises pay more attention to cost control and pay attention to the high efficiency of the entire life cycle of equipment, rather than just the initial procurement cost. This highlights the positive transformation and upgrading of Chinese enterprises under the supply side reform. A strong example is that, before 2011, the variable frequency compressor has been introduced, but few people in the market. After 2011, the market share of variable frequency compressor, permanent magnet variable frequency compressor and two-stage compression products with higher energy efficiency rose rapidly, becoming the main products in recent years.
A glimpse of the whole leopard reveals the sea. Compressors are everywhere in the industry, but the product attributes determine that compressors play more of the role behind the scenes. However, due to the inextricable links between compressors and all walks of life, they provide a new dimension for observing China's economy.
Looking at Chinese funded enterprises under the "the Belt and Road" through compressors
Not long ago, the "the Belt and Road" International Cooperation Summit Forum was held in Beijing. The forum achieved a total of 76 major projects and more than 270 concrete results. "The Belt and Road" is the best international public good that China provides to the world. More than 100 countries and international organizations have responded positively and supported it. More than 40 countries and international organizations have signed cooperation agreements with China. It is an important hub for China's economy to connect with the world economy. As of 2016, the direct investment of Chinese enterprises in countries related to the "the Belt and Road" reached 29.35 billion US dollars, adding nearly 1.1 billion US dollars of tax revenue and 180000 jobs to local countries.
Then the question arises. What does this have to do with the compressor? Why does public opinion focus on compressor products and fields?
In fact, the answer is very simple. At present, China's investment in countries along the the Belt and Road is mainly concentrated in infrastructure projects, oil and gas industry chain, transportation, oil and gas port transportation and other fields. These industries are inseparable from manufacturing equipment and equipment, and no matter building equipment, electrical equipment, high-speed rail, freight ships, all need compressors.
At present, a number of compressor enterprises have gone abroad through the "the Belt and Road". These enterprises can be roughly divided into three categories:
The first category is the old state-owned enterprises with large process gas, natural gas gathering and transportation, and petrochemical compressors as the main products, as well as some private enterprises with emerging petrochemical compressor equipment, which export and support compressor products for the vast energy market in the Middle East and Central Asia. With the deepening of the "the Belt and Road" construction and cooperation, the abundant energy resources and equipment market in the region has been activated, and some enterprises have changed from simply providing products in the past to providing a series of growth services such as installation, commissioning, operation and process flow design.
The other is the engineering supporting compressor enterprises as China's engineering construction team enters the "the Belt and Road" market. With the promotion of the "the Belt and Road" to the height of national strategy, the infrastructure construction between China and surrounding countries has been accelerating. As the probability of large-scale projects undertaken by Chinese enterprises using Chinese construction machinery products is high, the construction machinery industry, which was plagued by overcapacity before, has ushered in a turn for the better. Since this year, the sales of construction machinery of various enterprises have generally increased by 50% - 150%. At the same time, the sales volume of mobile air compressors and fixed air compressors for power of construction machinery increased significantly. Many compressor enterprises have borrowed ships to go to sea, following the national construction machinery team to enter the "the Belt and Road" market.
There is another kind of enterprise, which is the private compressor enterprise that we focus on. These enterprises are the backbone of China's compressor industry and the most active group. At present, many enterprises have established distribution networks in more than 50 countries and regions in Southeast Asia, Australia, Europe, South America and Africa. The product bases located in Southeast Asia and Eastern Europe can radiate the "the Belt and Road", greatly improving the ability of enterprises to provide international supporting services and meeting the overseas needs of Chinese funded enterprises. In recent years, enterprises have been communicating with international customers and dealers through foreign exhibitions and technical forums to promote the development of overseas compressor market.
Through the development of compressor overseas business, we can see the collaborative development model of Chinese enterprises in overseas markets, and create an ecosystem of Chinese enterprises in overseas markets. In addition, according to the changes in compressor enterprises' product sales in overseas markets in recent years, as well as the sales proportion and value-added services in different countries/regions, we can see the development focus and operation of Chinese enterprises in overseas markets.
At present, China's economy is in a period of rapid change and adjustment, which is complicated. The close relationship between compressors and economic activities provides us with a new perspective of observation, and we can crack many economic codes. This can not only measure the temperature of China's economy, understand the changes brought about by the supply side reform in various industries, but also see the operation of Chinese enterprises in overseas markets.