Pump industry may face reforms

Although the pump industry has been hit to some extent due to the increase in raw material prices, it still maintains a relatively stable demand and development momentum, which must benefit from the maturity and stability of the development of the pump industry. In the future, the water pump market will be re-integrated and developed in a higher direction.

Shang Pu consulting machinery industry analyst pointed out that: Although the impact of rising raw materials, but the pump industry has maintained a relatively stable demand and development. The reason is mainly that the increasingly perfect urban infrastructure has greatly promoted the pump industry to enter the sales peak. In addition, the government has continuously increased the implementation of domestic demand, and many local governments have also subsidized agricultural water pumps. The construction of all of these water and electricity projects has promoted the development of the pump industry, which has given the pump industry an opportunity for development.

In recent years, domestic economic development has been very rapid, but hydropower supply has been severely in short supply under the influence of many factors, and the market for pumps and generators is still very large. The increasing market competition in the pump industry has caused many sellers to realize that technology, quality, price, and service will become one of the important factors for competition in a certain period of time. As a water pump seller, we must win the market with high quality service and good quality.

In recent years, the domestic pump industry has maintained a steady growth in its market size, and its annual growth rate has remained at around 13%. Although the domestic pump industry has made great progress, there are still many problems. The chaotic market order, the incomplete product structure, the oversupply of products in the low-end market, the relatively low technological level of enterprises, and the inability of independent research and development for independent innovation have largely hindered the healthy development of the pump industry.

According to the “2012-2016 China Pump Market Survey and Investment Suggestion Analysis Report” published by Champion Consulting, it shows that as more and more multinational pump manufacturers enter China, the market competition of the pump industry becomes more and more internationalized. Pump companies will face increasing challenges in terms of technology and management. From the development process of the pump industry in the United States, Germany, and other developed countries, China's pump market is bound to experience a consolidation dominated by foreign investment (joint venture) companies. SMEs in this round of integration that lack technical capabilities and market competitiveness will be eliminated. This will undoubtedly help to increase the concentration of China's pump market and adjust the market order. This will also make China's pump market more viable and actively participate in the global pump market competition. It is estimated that in 2015, the value of China's pump market will account for the entire world market, which is 21% of US$40 billion.