The market is turbulent

The market is turbulent

In September, autumn is getting stronger, and many compressor people feel slightly cooler like this weather. This is mainly due to the fact that the compressor market sales in the first half of the year did not recover as quickly as expected in previous years. Looking at the entire compressor market, the current large-scale compressors are still growing slightly year-on-year, while the performance of small-scale compressors is much worse. The companies that have sold relatively well have also experienced a decline of 30% to 40%. Faced with the status quo, we don’t have to panic too much. This is a normal phenomenon in the development of the economy and the industry. What’s more important is that in recent years, with the booming compressor demand market, the industry has grown too fast, and sales of some companies have been linear. In the rising state, with the rational return and saturation of the demand market, a slight correction in compressor demand appears to have fallen dramatically. If the company has a solid foundation, retains sufficient profits, and insists on steady growth, the results of this wave of adjustments will not be very pessimistic.

From the perspective of compressor companies’ own development, a reasonable growth rate is the foundation for companies to maintain sustainable development. However, many compressor companies use China’s rapid economic growth to rapidly increase their market share, soaring at a stage where steady growth should be expected. When quality should be sharpened, quantitative change was pursued. As a result, the company was puffy and unstable due to excessive growth. The slightest turmoil in the market would cause sales to decline and shrink. This is not only this year. From the perspective of the overall environment, the shift and quality of China's economy has entered a new normal. It has shifted from high-speed growth to medium and low-speed steady growth, and the double-digit GDP growth rate is gone forever. Correspondingly, the continuous high growth of compressors has also ended, and it is inevitable to return to the normal growth track. At the same time, the 13th Five-Year Plan has been implemented, and the investment in the 14th Five-Year Plan has not yet arrived. This year is at the low point of my country’s five-year economic plan cycle. It is foreseeable that in one to two years, the compressor market will usher in the next growth period. . From the perspective of the development stage of the compressor industry, we have passed the phase of screw compressors replacing piston machines, and passed the phase of replacing ordinary industrial frequency machines with energy-saving models represented by permanent magnet frequency conversion and two-stage compression. Next, the industry will enter Fully conform to and catch up with international standards, make efforts to innovate technology, and carry out service value-added stage. The entire industry will move from simply selling machines and fighting costs to more diversified revenue and more differentiated competition. This stage will contain broader market opportunities. At the current stage of industry development and transformation, clear growth paths and models have not yet emerged, and it is normal for companies to be confused, but what is certain is that the compressor market is far from reaching the growth ceiling.

In the face of the current situation, we must not only clearly realize that the decline of high growth is inevitable, but also see the broad and optimistic prospects of the industry and the market, and we should also realize that in this painful and suffering market atmosphere, companies should pay more attention to products Quality, structure and user experience, and more actively pursue the growth of quality and market segmentation.

　The sharp edge of the sword comes from sharpening, and the fragrance of plum blossom comes from the bitter cold! Strengthening the body in adversity, hardening internal strength, enhancing the competitiveness and anti-risk ability of the company, and calmly facing market fluctuations are the long-term development of the company!