Analysis on development of submersible pump industry in China

Development characteristics of submersible pump industry

(1) regional

From the world scope, the well submersible pump manufacturer mainly concentrates in the European and American developed countries and China, India, Turkey and other developing countries. At present, the main production areas of domestic well submersible pumps are concentrated in zhejiang, guangdong, shandong and other places, among which wenling city of zhejiang province is the most concentrated city. About 60% of the production and sales of well submersible pumps in China come from wenling city.

(2) periodicity

The production and sales of submersible water pump are influenced by the overall prosperity degree of national economy and the changes of residents' disposable income. However, because the submersible pump mainly meets the most basic production and living needs of people, its demand is relatively rigid, so it does not have obvious periodicity.

(3) seasonality

Well submersible pump is widely used in production and living water, agriculture and forestry irrigation, factory, mine water supply and drainage and other fields, there is no obvious seasonal.

Development direction of submersible pump

(1) technical innovation will drive new technology, new materials in the well submersible pump production use. For example, the traditional casting process to more advanced stainless steel stamping welding process development. Stainless steel stamping welding multistage pump core parts adopt stainless steel plate, with die stamping forming, have advantages of high precision, high reliability, good sealing, the hydraulic performance and the pump efficiency is generally better than that of casting production Wells with submersible pump, stainless steel stamping welding technology is the trend of the development of the Wells with submersible pump in the future.

(2) design to more efficient, energy-saving, environmental protection direction. For example, oil-filled motor design is moving toward more environmentally friendly water-filled motor design. The cavity of oil-filled submersible motor is filled with mechanical oil, while the cavity of water-filled submersible motor is filled with water. In addition, with the gradual popularization of frequency conversion technology in motor design, submersible pump for well will be more efficient and energy-saving in the future.

(3) integrated design to removable modular design direction development, that is, motor and pump body and other parts modular combination, easy to remove and replace damaged parts, to extend the service life of the pump, reduce the cost of use.

Analysis of the main factors of the development of submersible pump industry

1. Favorable factors

(1) the increasing demand for groundwater will promote the continuous growth of the demand for submersible pumps for Wells

In recent years, due to global warming and worsening drought, water resources, which are already very scarce, have become more scarce. In addition, surface water pollution has become increasingly serious, so people have to increase the development and utilization of groundwater resources. It is expected that the proportion of global groundwater resources usage will be further increased in the future, and the proportion of groundwater resources utilization in developing countries will increase rapidly, and the growth of groundwater demand will promote the continuous growth of the demand for submersible pumps for Wells.

(2) the improvement of residents' purchasing power level and the enhancement of their consumption consciousness are conducive to the popularization of submersible water pump

Since the beginning of the 21st century, China's macro-economy has entered a new round of upswing, with sustained and rapid economic growth and increasing household income and purchasing power. From 2006 to 2012, the compound growth rate of per capita net income of rural residents reached 14.11 percent, and the compound growth rate of per capita disposable income of urban residents reached 13.06 percent. The price of well submersible pump is relatively high. The improvement of residents' living standard and consumption consciousness is conducive to the popularization and utilization of well submersible pump. The increase of income also enables residents to choose well submersible pump products with higher cost performance.

(3) the national industrial policy supports the development of well submersible pump industry

The push in recent years, China's agricultural mechanization and agricultural industrialization, has launched "the central committee of the communist party of China, the state council on strengthening urban and rural development as a whole to consolidate based several opinions of the development of agriculture and rural areas, the state council on promoting agricultural mechanization and agricultural machinery industry faster and better development of opinions", "national agricultural mechanization development the twelfth five-year plan (2011-2015)" and other policy; We actively promoted the development of safe drinking water projects in areas lacking water, especially in rural areas, and introduced the national plan for safe drinking water in rural areas during the 12th five-year plan period. Meanwhile, in the guidance catalogue of industrial structure adjustment (2011) (revised in 2013), the promotion and application of efficient water transmission and distribution and water-saving irrigation technology are included in the encouraged industrial catalogue. Wells with submersible pumps as general water intake machinery equipment, will benefit from these industrial policies.

(4) the need of water conservancy construction in China is conducive to the development of well submersible pump industry

Since 2010, China has issued a number of policies and measures aimed at promoting water conservancy construction. In particular, since the state council promulgated the decision on accelerating the reform and development of water conservancy in 2011, the growth rate of water conservancy investment has significantly accelerated. In 2011 and 2012, the national investment in water conservancy construction reached 345.2 billion yuan and 411.7 billion yuan, respectively. In two years, the total investment exceeded 704 billion yuan in the 11th five-year plan for water conservancy construction. The construction, improvement and renewal of water conservancy system in China will contribute to the development of submersible well pump as an important general machinery.

(5) the national energy conservation and emission reduction policy is conducive to the survival of the fittest in the well submersible pump industry

China has been promoting energy conservation and emission reduction policies, pumps are large power consumers. It is estimated that 20% of the country's electricity generation is consumed by pumps, so the improvement of pump efficiency has obvious benefits for energy conservation and emission reduction. The energy conservation and emission reduction policies implemented by the state are conducive to the survival of the fittest in the well submersible pump industry, which will provide better development opportunities for the well submersible pump manufacturers with certain r&d strength and production scale and products in line with the development direction of high efficiency, energy conservation and environmental protection.

(6) China's well submersible pump products have a better cost performance advantage, the export prospects are broad

Although in recent years our country labor price increases, continued appreciation in the yuan, China's export products price also increase, but compared with developed countries such as Europe and the United States products, Wells with submersible pump products in China still has more obvious price advantage, in Europe and the enterprise product sales price several times in the similar export price of the product. With the development of well submersible pump industry in China and the improvement of production technology, the technical content and quality of products have been continuously improved, the export prospect of well submersible pump products is broad.

2. Disadvantages

(1) there is still a certain gap between the overall technical level of the industry and foreign advanced enterprises

There are many production enterprises in the well submersible pump industry in China, most of which have small production scale, extensive operation, insufficient investment in research and development, relatively backward technology and equipment, no economies of scale effect, poor product quality stability, and weak risk resistance ability. Represented by the company in the industry a few Wells with submersible pump companies after years of development and accumulation, greatly improve the product quality and technical level, actively participate in the international market competition and has a certain market share, also gain a certain degree of development of independent brands, but compared with advanced foreign enterprises, the Wells with submersible pump manufacturing enterprises in our country in the production scale, technical level and innovation ability remains to be improved.

(2) the fluctuation of upstream raw material price and the rise of labor cost

In recent years, the Wells with submersible pump for production of enameled wire, silicon steel sheet, copper pieces, such as the main raw material prices fluctuate, rising labor costs, to bring some negative influences on the development of the Wells with submersible pump industry, but in some advantage enterprises through technical improvement and large-scale production, decrease production cost, and with the improving of the market recognition and brand awareness, the ability of its downstream transfer cost are also increasing, to a certain extent can relieve the pressure from the upstream raw material price fluctuations.

(3) the rise of RMB exchange rate puts pressure on exports

At present, China's well submersible pump manufacturers are actively participating in the international market competition, and with a better cost-effective advantage in the international market has occupied a large market share. For export-oriented enterprises, product exports are generally settled in dollars. In recent years, the RMB has continued to appreciate. At the end of 2011, 2012 and 2013, the RMB appreciated against the us dollar by 4.86, 0.24% and 3.00% respectively. The appreciation of RMB weakens the price advantage of well submersible pump export.