In 2016, the information on the economic operation situation of the machinery industry was released

2016 is the first year of the implementation of the "13th Five-Year Plan", the machinery industry conscientiously implements the strategic deployment of the Party Central Committee and the State Council, and actively explores new paths for the development of the industry in the face of the complex and changeable economic environment at home and abroad. Under the guidance of "Made in China 2025" and related policies, the growth rate has rebounded, and the development trend is generally stable. At the same time, with the deepening of structural adjustment, the market environment facing the development of the industry is still severe, the deep-seated contradictions within the industry are becoming more and more prominent, and the task of industrial transformation and upgrading is more onerous.

Looking forward to 2017, the machinery industry will fully implement the spirit of the 18th National Congress of the Communist Party of China and the 3rd, 4th, 5th and 6th Plenary Sessions of the 18th Central Committee, conscientiously implement the decision-making and deployment of the Central Economic Work Conference, adhere to the general tone of the work of seeking progress in stability, deepen innovation-driven, and steadily improve the economic efficiency level of the industry in the process of implementing the supply-side structural reform, comprehensively improve the quality of industry development, and welcome the victory of the 19th National Congress of the Communist Party of China.

China Machinery Industry Federation

First, the economic operation of the machinery industry in 2016

(1) The growth rate of major economic indicators rebounded

Since 2016, the growth rate of the main economic indicators of the machinery industry has generally rebounded on the basis of the low level of the previous year, and the growth rate has exceeded the expectations at the beginning of the year.

1. The growth rate of added value is higher than the industrial average

In 2016, the growth rate of added value of the machinery industry showed a trend of increasing month by month, with a year-on-year increase of 9.6% from January to December, an increase of 4.1 percentage points over the previous year's growth rate, and 3.6 percentage points higher than the national industrial growth rate in the same period.

2. The growth rate of main business income has increased

In 2016, the machinery industry achieved a total of 24.55 trillion yuan in main business income, a year-on-year increase of 7.44%, an increase of 4.12 percentage points over the same period of the previous year, and 2.53 percentage points higher than that of the national industry in the same period. Judging from the trend of the whole year, the growth rate has increased month by month and has always been higher than the national industrial average in the same period.

3. The total profit continues to grow

In 2016, the total profit of the machinery industry was 1.68 trillion yuan, a year-on-year increase of 5.54%, 3.08 percentage points higher than the same period last year, but lower than the growth rate of main business income in the same period, and also lower than the average growth rate of national industrial profits. The profit margin of main business income was 6.87%, down 0.12 percentage points from the previous year, and it has declined for two consecutive years. The loss of enterprises was 11.91 percent, an increase of 0.41 percentage points over the previous year, and the loss increased by 6.25 percent.

(2) The output of most products maintained growth

Among the 64 major machinery products announced by the National Bureau of Statistics, 41 have achieved an increase in output, accounting for 64.1%; 23 species decreased in production, accounting for 35.9%. The proportion of products that achieved an increase in production increased by 36 percentage points compared to the previous year.

(3) The growth rate of investment has fallen too fast

In 2016, the investment in fixed assets of the machinery industry continued to decline in recent years, and the cumulative investment from January to December was 5.01 trillion yuan, an increase of only 1.7% year-on-year, which was lower than the growth rate of investment in the whole society and manufacturing industry by 6.4 and 2.5 percentage points, and the growth rate of investment in the machinery industry fell sharply by 8 percentage points compared with the previous year, and the growth rate has fallen for five consecutive years.

(4) The order situation is still unstable

In 2016, the weak market demand of the machinery industry did not improve significantly, 1-12 months of machinery industry key contact enterprises cumulative order volume increased by 10.37% year-on-year, although the data has rebounded from the previous year, but the order situation is still unstable, engineering, heavy, mining machinery, petroleum machinery and other related industries of enterprise orders are obviously insufficient. At the same time, the quality of orders has decreased.

(5) The total import and export volume of foreign trade continued to decline

In 2016, the foreign trade of the machinery industry continued the weak trend of the previous year, and the total foreign trade volume continued to grow negatively. The total import and export volume for the whole year was 647.455 billion US dollars, a year-on-year decrease of 2.86%; Among them, imports were 272.7 billion US dollars, a year-on-year decrease of 1.82%, and the decline was narrower than that of the previous year; Exports were 374.8 billion US dollars, down 3.6% year-on-year, and have been negative growth for two consecutive years. The annual trade surplus was US$102.1 billion.

(6) The product price index rebounded slightly

In 2016, the prices of machinery industry products generally continued the weak downward trend in recent years, and the producer price index of machinery industry was below 100 throughout the year. From the trend point of view, the decline in the price index of machinery products is narrowing, and the price index in December was 99.8, an increase of 1.5 percentage points from the beginning of the year. However, compared with the increase in the purchase price index of industrial producers in the same period (up 12.1 percentage points), the price of machinery products has been difficult to recover.

2. Structural adjustment has been actively promoted

(1) Adjustment and upgrading of product structure

1. Adapt to market changes, and differentiate product production and sales

Sales of construction machinery products bottomed out, and according to statistics, 8 of the 10 main products achieved positive growth. After years of rapid growth, agricultural machinery products have declined at a high level, and according to statistics, the output of 8 of the 10 main products has declined. According to the statistics of the China Association of Automobile Manufacturers, the production and sales of automobiles in 2016 were 28.12 million and 28.02 million respectively, an increase of 14.5% and 13.7% year-on-year respectively, and the production and sales both exceeded 28 million units, setting a new record high and ranking 5656 in the world for eight consecutive years. According to the statistics of the Machinery Industry Power Generation Equipment Center, the output of power generation equipment in 2016 was 115 million kilowatts, a year-on-year increase of 8.4%.

2. Steady growth of products in line with national policy guidance

In the severe market competition, the company conforms to the direction of national industrial structure adjustment, strives to develop marketable products, and has a good momentum of development.

First, the output of products closely related to consumption and environmental protection has maintained growth. Passenger car production and sales totaled 24.42 million units and 24.38 million units, up 15.5% and 14.9% y/y, respectively. From January to December, the special equipment for environmental pollution prevention and control increased by 30.3% year-on-year, of which the air pollution prevention and control equipment increased by 29.65% year-on-year, and the water pollution prevention and control equipment increased by 37.04% year-on-year; Internal combustion forklifts related to logistics and warehousing consumption increased by 7.68% year-on-year.Electric forkliftsThe year-on-year increase was 4.28%, and the post-harvest processing machinery increased by 16.69% year-on-year.

Second, the sales of products related to new energy and intelligent manufacturing have grown rapidly. The annual production and sales of new energy vehicles were 517,000 and 507,000 respectively, an increase of 51.7% and 53% year-on-year, respectively. Electrical instrumentation increased by 18.54% year-on-year.

(2) Highlights of independent research and development are frequent

Under the guidance of relevant industrial policies such as the "Made in China 2025" power strategy, the transformation and upgrading of the machinery industry, innovation and development continue to advance.

Breakthroughs have been made in the independent research and development of high-end equipment such as large-scale nuclear power, hydropower, thermal power and wind power equipment, ultra-high voltage AC and DC and flexible DC transmission and transformation equipment, key equipment for long-distance oil and gas pipelines, key equipment for large-scale coal chemical industry, and high-end CNC machine tools. For example, the world's first large-section horseshoe shield TBM was officially started in Shaanxi; The digital I&C system platform project for nuclear power plants jointly developed by Beijing Hollysys System Engineering Co., Ltd. passed the acceptance; The world's first fourth-generation nuclear power plant reactor pressure vessel independently developed by Shanghai Electric Nuclear Power Equipment Co., Ltd. was successfully hoisted at Huaneng Shidaowan Nuclear Power Plant; The reactor coolant pump equipment of Harbin Electric Power Group C4 project passed the acceptance; China Yituo has successfully developed a 200kN load vehicle with the first level of tractor performance test in China; New breakthroughs have been made in the technology of key components of UHV power transmission and transformation equipment.

(3) Emphasis has been placed on innovation capacity building

"Innovation-driven and innovation-guided" has become the independent choice of more and more enterprises, and the actual investment in innovation capacity building continues to increase. The basic test and testing platforms for new product research and development, such as large-scale compressor test benches, water wheel model test benches, and power station safety valve test benches, have been built one after another. At the same time, there are also a number of world-class test and testing platforms have begun to be built, such as the global * 5661 voltage level ± 1100kV transformer product test conditions have been built.

(4) Intelligent manufacturing has taken off

Under the guidance of relevant industrial policies, the digital transformation of China's traditional manufacturing field continues to be carried out, and the pace of informatization construction covering the whole process of enterprise production, operation and management has accelerated. At the same time, the intelligent manufacturing that integrates information technology such as the Internet and cloud computing, modern sensing technology, high-precision control technology and digital manufacturing technology has begun to take off in some fields. Taking industrial robots as an example, according to the statistics of the China Robot Industry Alliance, China has become the world's largest industrial robot consumer market for three consecutive years. Among them, handling is the primary application field of robots, especially in fields with harsh working conditions such as casting, and the use of industrial robots is rising rapidly. It is expected that in 2016, the sales volume of robots in the Chinese market will still rank 5656th in the world.

(5) Actively explore new paths for transformation and development

Machinery enterprises actively explore new paths for development, new formats and new models continue to emerge. In order to promote the development of traditional industries to the manufacturing service industry, the China Machinery Industry Federation issued the "Guiding Opinions on the Development of Service-oriented Manufacturing in the Machinery Industry" to encourage enterprises to actively explore new paths for development. At present, the service-oriented manufacturing of the machinery industry has been fully extended to all major industries, realizing a complete service chain from R&D and design to product recycling, processing and remanufacturing, and a number of typical and demonstration enterprises such as Shaanxi Blower Group, Weichai Power Group, Hangzhou Oxygen Concentrator Group, and Zhejiang Central Control Technology Co., Ltd. have emerged. The development of service-oriented manufacturing has become an important way for the transformation and upgrading of machinery industry enterprises.

3. Prospects for the development of machinery industry in 2017

In the international market, in 2017, against the backdrop of rising global trade protectionism and increasing anti-globalization tendencies, the world economy as a whole is expected to maintain a recovery momentum, but it is facing multiple risks and challenges, such as insufficient growth momentum, sluggish demand, repeated turbulence in financial markets, and continued sluggish trade and investment. In this situation, the machinery industry's foreign trade, foreign cooperation, and capital allocation are bound to face a new, more complex and changeable situation. The industry needs to actively explore new ways of development, with the help of the "Belt and Road" strategy, to maintain and enhance the position of China's machinery industry in the global market.

In the domestic market, the Central Economic Work Conference pointed out that 2017 is the year of deepening the supply-side structural reform, and it is necessary to focus on revitalizing the real economy, focusing on improving quality and core competitiveness, adhering to innovation-driven development, and expanding the supply of high-quality products and services. This is good for the machinery industry *5655. At the same time, with the in-depth promotion of the work of "Made in China 2025", the implementation of special projects such as "strong foundation project" and "intelligent manufacturing" and major technological transformation and upgrading projects, the driving role of industrial policy on the development and economic operation of the machinery industry will be further released. In addition, the implementation of key tasks and safeguard measures for the restructuring of the machinery industry to promote the transformation and increase efficiency is not only a continuation of the "Twelfth Five-Year Plan" machinery industry adjustment and revitalization planning policy, but also the specific deployment and requirements for the development of the "Thirteenth Five-Year Plan" machinery industry, aiming at the shortcomings and crux of the contradiction in the development of the machinery industry, which is very instructive, pertinent and operational, providing a good policy environment for the development of the machinery industry and boosting the confidence and determination of the whole industry.

However, it should be noted that the downward pressure on economic operation is still very large, the situation of weak domestic demand market for machinery products is difficult to improve significantly in the short term, and the steel, coal, electric power, petroleum, chemical and other industries mainly served by the machinery industry are generally in the deep adjustment period of the industrial structure, and the demand for energy equipment is difficult to grow significantly in the short term. In addition, after years of rapid development, the social ownership of various mechanical products has reached a considerable scale, and the renovation and maintenance of in-service equipment has become an important part of the demand, which not only reduces the downward range of growth fluctuations, but also increases the difficulty of incremental recovery.

Comprehensive analysis, it is expected that the machinery industry in 2017 will continue to stabilize and improve the trend of the previous year, and the industry will maintain steady growth, but the growth rate will be lower than in 2016. Specifically, it is expected that the annual growth rate of the added value of the machinery industry will be about 7%, the growth rate of main business income and profits will be about 6%, and the decline in the total export volume of foreign trade will not exceed the level of the previous year.

2017 is an important year for the implementation of the "13th Five-Year Plan", the whole industry should strengthen confidence, take the initiative, in the context of macro policies and market environment is basically stable, and actively promote the restructuring of the machinery industry, transformation and upgrading, cost reduction and efficiency improvement, to ensure the smooth and good operation of the industry, to the 19th National Congress of the Communist Party of China.