In 2020, China's machinery industry bucked the trend and the economic performance exceeded expectations. According to the China Machinery Industry Federation, in 2020, the machinery industry achieved operating income of 22.85 trillion yuan, up 4.49% YoY, 3.73 percentage points higher than the national industry;

"Warm ocean" data, not only represents the industry's red fire, but also reflects China's new economic momentum: "new infrastructure" to open up new space in the market, high-quality development to lead China's manufacturing upgrades, Chinese brands towards a more shiny "stage."

Multiple benefits pulled the machinery industry up more than expected

The rebound was better than expected

At the beginning of 2020, as a result of the outbreak, the production of 120 major products monitored by the machinery industry declined significantly, with only two products increasing between January and February. After March, with the resumption of production, the main sub-sectors of the machinery industry quickly reversed, showing a stronger-than-expected rebound throughout the year.

Chen Bin, executive vice president of the China Machinery Industry Federation, said at a recent press conference on the economic performance of the machinery industry in 2020 that thanks to infrastructure investment and the launch of energy construction projects, production of construction machinery and equipment products has recovered rapidly and maintained steady growth.

"Two new one heavy" construction plus code, but also to the machinery industry opened up a "new world." At the same time, all walks of life are to high-quality development efforts, old machine replacement, machine replacement trend accelerated, market demand shows a trend of continuous upgrading. Data show that in 2020, the total profits of 11 of the 14 sub-sectors of the machinery industry will increase year-on-year, with the profit growth rate of the construction machinery and robotics and intelligent manufacturing industries exceeding 30%.

The policy support of the state to reduce taxes and reduce fees, help enterprises to support enterprises and stabilize employment has also played an important role in the recovery of the industry.

The pace of transformation and upgrading is accelerating

Driven by the benefits, the endogenous power of the intelligent development of machinery industry enterprises is obviously enhanced, and the bright spots of intelligent, unmanned and electric products are frequent.

"The machinery industry as a whole is accelerating the pace of innovation to meet the needs of upgrading, and has achieved rapid growth in new energy equipment such as wind power, photovoltaic power generation and new industries such as industrial robots." Chen Bin said that the machinery enterprises themselves are also vigorously promoting digital, networking and intelligence-oriented technological transformation, for high-quality development has accumulated momentum.

At the same time of intelligent development, the machinery industry also shows the trend of accelerating the upgrading of service-oriented manufacturing. A number of machinery enterprises to the "products and services" direction, to provide more and more high value-added services, industrial design, financial leasing, energy-saving services, information technology services and other productive services gradually grow.

According to Zhu Hongren, director of the Strategic Advisory Committee of the China Service Manufacturing Alliance, service manufacturing is precisely the key to the opening of the door to profitability in manufacturing, and the future of manufacturing.

Domestic brands usher in new opportunities

Since this year, all regions have been actively promoting the construction of projects. The start-up of major project projects has strengthened the expectation of hot sales.

Red hot market, good for the development of domestic brands. During the "13th Five-Year Plan" period, China's machinery industry achieved a cumulative trade surplus of 610.4 billion U.S. dollars, which also reflects to a certain extent the improvement of the competitiveness of China's machinery products in the international market. China's machinery enterprises from small to large, from weak to strong, from following imitation to independent innovation, a large number of domestic brands rapidly rise.

Chen Bin said that in the opening year of the 14th Five-Year Plan, the start of major projects and major projects, the gradual formation of a new development pattern, for the smooth development of the machinery industry has brought corresponding market demand. It is expected that in 2021, the overall operation of the machinery industry economy will show the trend of the previous high and low, the annual industrial value-added growth rate of about 5.5%, operating income and total profit growth rate of about 4%. (Source: Economic Daily)