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What way should electrical equipment industry go after the May 1st Labour Day holiday?
Released on: 2015-04-24 Content Sources: Jinguan Electric
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!

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