Why did the equipment manufacturing industry suffer the "unfinished battle first?"

Recently, the reporter was informed that in the first half of 2015, a large listed manufacturing company in Hubei suffered Waterloo in the bidding process of a domestic city. It was not R&D technology, product quality, quotation, and service that defeated them, but a column on the bidding documents. "Performance" or "first (set) sets" indicator.

"It is precisely this indicator that more than half of Hubei's civilian equipment manufacturing enterprises have been mercilessly blocked outside the threshold for bidding qualifications," said a senior businessman of the listed company.

A similar situation also occurred in Wuhan Wuda Excellence Technology Co., Ltd. An owner unit needs to purchase a laser rapid continuous deflection measurement system. At present, only WuDaExcellence and a Northern European company produce and sell this system globally. The owner of the project decided to adopt Nordic products through tendering; however, the products were shipped from abroad to China and had been unused since they did not meet China's road operation specifications.

On the one hand, the domestic civil manufacturing market has gradually increased its demand. On the one hand, domestic companies have independently innovated in R&D and increased their production capacity. According to the theory of supply and demand, the market should be very broad. However, what caused the imbalance in supply and demand in the domestic manufacturing industry?

The threshold of "dead circle" makes innovative products not defeated first

Mr. Sun, an industry insider who did not wish to disclose his full name, pointed out in an interview with Jingchu.com reporter: “Many of the owners’ units will emphasize 'performance' and 'head (set)' sets when bidding, and require domestic companies to bid on products. Not only must there be a certain amount of performance accumulation, but also a user experience report for the first (set) sets of products."

"This is an endless loop! China's autonomous equipment manufacturing industry has been deprived or even left blank for a long time in the past. Even if we independently research and develop and produce outstanding products that meet market demands, it is difficult to sell without performance. Equipment, equipment, which can not sell the performance?" Speaking of some domestic projects to domestic manufacturers to set a high threshold for tendering, Mr. Sun is not equal.

In response to the above phenomenon, Jingchu network reporters also telephoned several local civilian manufacturing enterprises in Hubei. Responsible individuals of these companies said that domestic companies’ independent innovation products “have not lost before the battle” in the bidding process. Such an embarrassing situation is not uncommon.

“This phenomenon is not only in Hubei, but also in our entire country.” Professor Chen Dingfang, a professor of mechanical engineering and computer application at Wuhan University of Technology, also expressed the same view when he was interviewed by the Jingchu Network reporter. “Germany, The development of Japan's equipment manufacturing industry started early. Many manufacturers are old brands that lasted for decades or even hundreds of years. However, our country’s manufacturing industry started late and developed slowly. At this stage of the company’s performance, domestic enterprises are certainly difficult to achieve with advanced manufacturing. National competition!"

“However, the lack of performance does not mean that our products are not good and not competitive!” Chen Dingfang believes that in order to improve the quality of independent products, it takes time for some domestic owners to have insufficient confidence in domestic brands. And policies to increase people’s confidence in domestic brands.

Chen Dingfang said that Hubei Province, as a major industrial province, has always been relatively advanced in its independent R&D and manufacturing. As a knowledge-intensive industry, Hubei Province has the largest number of college students in the country, as well as many manufacturing experts and professors. “So, we have absolute manufacturing empiricism! But the current problem is that we say that our products are good and how we can make the market speak well. This is what we need to explore.”

Entanglement of interests makes the market threshold become "iron gate"

When talking about the reason why the owners' units set “performance” and “first set” thresholds for innovative products during bidding, Mr. Sun told reporters: First, when a high-tech product is put on the market for the first time, there is no user to use the report, and the owner generally does not Buy it on your own initiative. Second, most of the owners involved in the purchase of equipment manufacturing industry are government, state-owned enterprises, or state-owned enterprises. In order to avoid personal risks, purchase decision makers usually buy which product is the most expensive.

"Cost or cost-effectiveness is not important to these decision makers," said Mr. Sun.

Mr. Sun also stated that domestic equipment manufacturing companies are standing on the shoulders of giants. At present, many companies have made great progress in the level of research and development and manufacturing, and even many products lead the country abroad. They also have strong price competitiveness and Perfect and safe after-sales service. "If you just want to avoid personal risk and not consider product quality, price, and after-sale comprehensive consideration, we will boycott domestic production. This is very unfair to our domestic manufacturing companies! It will also seriously dampen the enthusiasm of domestic companies for independent research and development!"

In fact, relevant departments also noticed the crux of the problem and introduced relevant policies to try to remove the market barrier.

In March 2014, the Hubei Economic and Trade Commission issued a “Notice on Printing and Accelerating Action Plan for Accelerating the Development of Intelligent Manufacturing Equipment Industry in the Province”. The notice clearly stated that it is necessary to encourage the first (Taiwan) application, to carry out the identification of the first (Taiwan) sets of major technical equipment, and to reward the first (Taiwan) sets of demonstration projects for major technical equipment.

One year has passed, why are there still many local manufacturing companies still facing the "first (set) sets" of this market only?

Mr. Sun revealed that there are two reasons for this: First, the "formal cooperation between China and foreign countries" has emerged one after another, resulting in a high localization rate, and the market for self-owned brands is still weak. "Formal cooperation between China and foreign countries" means that foreign companies can cooperate with local manufacturing enterprises in the form of "cooperation," that is, they can enjoy the policy support in the common coat of "domestic origin." In fact, these enterprises take off their domestic garments and the core equipment is still imported.

Second, there are trade protection policies in every region. The policy promulgated by Hubei Province is only valid in Hubei Province. The brand of Hubei Province will go out and face discrimination from projects outside the province.

How to break through the years of market discrimination?

How to break through the "first (set)" set of "bidding discrimination," industry insiders have suggested, "On the one hand, the government must strengthen corporate review of the 'formal cooperation between China and foreign countries' in the manufacturing industry, so that real, full-fledged domestic companies can enjoy more policies." Support; On the other hand, we can adopt measures such as increasing the market share for owners' units for free trials for a period of time."

However, for the “free trial for a while” proposal, there are still concerns from the owners that companies are pursuing profit maximization. Many factories’ production lines do not stop every day for 24 hours. The daily production value must be a stable value; even if it is free trial, if The problem caused a series of problems such as the interruption of the production line, the inability to deliver on schedule, the breach of contract, the huge amount of compensation, and the fracture of the capital chain... Who will pay for these consequences?

"Not that we don't want to support domestic production. It involves a huge amount of money and has an impact on the survival of companies. No one dares to pay for risks!"

Modular Tubular Screw Conveyor

Cement Screw Conveyor,Modular Tubular Screw Conveyor,Cement Screw Auger Conveyer,Grain Auger Conveyor

Xinxiang Zhenying Mechanical Equipment Co., Ltd , https://www.zhenyinggroup.com

Posted on