2012 Machinery Industry Profit Expected to Continue Double-digit Growth

Recently, the reporter learned from the China National Machinery Industry Federation that the development environment of the machinery industry this year is more difficult, but under the support of supporting policies, and the company’s own competitiveness is also increasing, the industry’s profit growth rate is expected to reach 12% in 2012. about.

In the past 2011, the machinery industry maintained a relatively good running trend. Data show that the industrial output value reached 16.89 trillion yuan in the year, an increase of 25.06% over the previous year; the industrial added value increased by 15.1% year-on-year, higher than the national average growth rate of industry (13.9%) by 1.2 percentage points; and the realized profit is expected to reach 1.1. Trillion yuan, an increase of more than 18% year-on-year.

At present, the high-end equipment manufacturing industry and new energy vehicles have been identified as strategic emerging industries that the country's “Twelfth Five-Year Plan” has focused on supporting development, and will further stimulate the industrial restructuring of the machinery industry and promote the upgrading of product structure.

However, the economic operation of the machinery industry also faces several unfavorable factors. The first is the weak domestic market. After the domestic market experienced rapid growth in previous years, with the deepening of industrial restructuring and the deceleration of expansion of infrastructure projects, the growth rate of the industry has slowed down significantly, leading to a prominent situation in which the supply of products exceeds demand.

Second, the slowdown in world economic growth has increased the uncertainty in the external market for the machinery industry. At the same time, due to the tightening of market liquidity, corporate financing becomes more difficult and costs continue to climb. With rising prices and the improvement of the labor wage system, the company's labor costs have risen significantly. These factors have increased the pressure on the growth of business efficiency in the industry in the future.

Under the influence of the above factors, the Association expects that the growth rate of the major economic indicators of the machinery industry will be less than this year in 2011. The annual production and sales growth rate is expected to be around 18%, the profit growth rate will be around 12%, and the export growth rate will be around 15%.

According to the association’s forecast, the low point of the machinery industry’s fall in this round may reach the end of the first quarter or the second quarter, after which the growth rate will be stabilized again.