“Rising raw material prices, severe overcapacity, weak new product development capabilities, and low investment in renovation and transformation are the major problems in the industrial boiler industry.” Cheng Qiyao, director of the Industrial Boiler Branch of the China Electrical Equipment Industry Association, said recently.
The profit margin has been declining. "In recent years, the profit margin of industrial boiler companies has been eroded, and some specifications of products are in the capital preservation point. Due to the increase in the prices of main raw materials and the single product, the profit rate of 44.05% of the enterprises has dropped, even causing losses, and the profits have been negative. Enterprises account for 10.71% of the total number of enterprises,” Cheng Qiyao said.
At present, there are more than 1,000 D-class boiler plants in China, with a production capacity of more than 150,000 tons of steam, which is much higher than the market demand of 3 to 50,000 tons of steam. The products are similar in size, and there are many conventional products, which leads to intensified market competition and lower product prices. drop. While sales costs and operating expenses have increased year after year, corporate sales have increased but profit margins have been declining.
According to statistics, the main business income of the industry was 12.189 billion yuan, a year-on-year increase of 20.68%, and the main business cost increase was 3.11 percentage points higher than that of the main business. In 2007, the year-on-year increase in operating expenses, management fees and financial expenses for products was 36.7% and 27.64% respectively. It can be seen that the increase in the cost of industrial boilers is still higher than the increase in sales revenue in the same period, and many companies increase revenue but do not increase efficiency.
The investment in scientific research, development and renovation of enterprises needs to be improved, and new product development efforts need to be further increased. Only 13 companies invested more than 10 million yuan in science and technology, and 30% of companies basically have no technology investment. In addition, new product development efforts are still not high. In 2007, the output value of new products was only 10% higher than the same period in 2006.
The club’s four-point proposal puts forward four suggestions based on many factors that affect the development of the company.
First, it is hoped that the relevant government departments will strengthen macro-control, adopt strict measures such as access conditions, compress excessive production capacity, strengthen market regulation by regulating market order, and in particular, regulate bidding order. At the same time, it is hoped that corporate decision-makers will strengthen management and self-disciplined market behavior. The turnover of a boiler is not only related to the price, but also related to factors such as delivery time, payment method, and corporate reputation. The company needs to do more in terms of delivery time, user adaptability, product performance, quality, service, and integrity. article.
Second, the company reduced costs by strengthening management, increased market competitiveness, and operated new models for companies operating with brands and technological innovations. First, the supply chain management is included in the overall business strategy of the company, ie, the entire supply chain system in the product life cycle is considered, designed and planned. Secondly, in the daily production and operation activities, the supply chain system is continuously optimized to meet the needs of customers. Once again, the corresponding organizational structure adjustment will be focused on the core business and establish a good supplier system.
Third, companies must increase investment in scientific research and development. At present, the energy situation is very severe. The development of new products for industrial boilers should be based on coal-fired boilers to meet the needs of central heating and regional cogeneration. Coal-fired steam boilers use more chain grate, followed by circulating fluidized bed boilers, and the sum of these two items accounts for 75% of the development projects. At the same time, attention has been paid to the production of coal-water slurry boilers, waste incinerators, and biomass-fueled boilers, waste heat boilers, and waste gas utilization boilers.