As the May 1st Labour Day holiday is approaching, it
may be a joke to ask for a leave, but the entire economic market does need a
break. The overall economy in the first quarter seems to be stable, but the
growth rate of various industries has slowed down and the market economy is
still "in recession." The website www.7895.com carried out an
analysis on the future of electrical equipment industry after the May 1st
holiday based on several factors including recent economic environment, the
Government's new policy and industrial upgrading.
Negative factors:
Affected by the economic
environment, the power industry is also "in recession." Recently,
"GD POWER DEVELOPMENT CO.,LTD. 2015 Q1 Power Generation Report" is
released. Generally speaking, in the first quarter, total generation capacity
and on-grid energy were down by 9.15% and 9.32% compared with the same period
last year. Among which, total power generation capability and on-grid energy
generated by thermal power, hydropower and photovoltaic enterprises achieved
goals show a decline over the same period.
The factors causing such decline
may seem like natural causes and decreased equipment load ratio year on year,
but essentially reflect an oversupply market. The introduction of new
electricity reform program did not break the monopoly as expected and certain
problems in power industry remain unsolved. If the power industry loses its
vitality, other industries closely related to power will also lose their
energy. Among which, power equipment industry which depends on power, is
subject to a direct impact.
To make matters worse, in an report
on the 2015 Q1 imports and exports issued by State Council Information Office,
the total value of imports and exports fell by 6% year on year. On one hand,
affected by the international financial situation, the economy is in a weak
recovery period. On the other hand, domestic economy is facing downward
pressure and the economic institution has entered the adjustment period.
Exports has developed from "quantity " to "quality",
further squeezing the low-end power equipment export market.
Positive factors:
Before the Labor’s Day holiday, the
government has issued several related policies to stimulate the market economy
from the aspect of macroeconomic regulation and control: Support small and
micro enterprises, optimize the industry structure and encourage independent
innovation. The government affirms and supports activities to stimulate market
economy at policy level. Foreign policies including “One Belt and One Road” and Asian Infrastructure Investment Bank also contribute the an active market
economy. Under the dual stimulation of domestic and foreign positive factors,
the market economy is expected to catch up with the growth in the same period
in the next quarter. Electrical equipment industry can take advantage of this
trend to achieve greater development.
The industry has entered the period
of optimization and adjustment. Some enterprises are struggling and large
groups are carrying out mergers and acquisitions to remove low-end products and
concentrate manpower and capital for the development and production of high-end
products. More high-quality professional talents will enter the industry and it
has become imperative for the industry to change.
The first quarter of 2015 will see
weak economic recovery and highlighted contradictions. At the same time, it
also brings hope for the entire electrical equipment industry and even the
whole country. If enterprises in the electrical equipment industry can work
together to overcome difficulties and problems, the future will be brighter!
