Machinery sector expects double-digit growth in 2013 (4)

Seize opportunities in the medium-speed growth phase

We should start with increasing effective demands and dissolving excessive production capacity, increase policy support, and deepen market-oriented reforms.

Looking into 2013, experts participating in the conference all suggest that China's machinery industry has gone from a rapid growth phase into a medium-speed growth phase. On one hand, the pressure of increasing cost will continue, and on the other hand, macro-economy policies can be expected to further promote the upgrading of the machinery industry.

"The growth of the machinery industry has basically bottomed out now, and it is not likely that it would continue to slip considerably in the future". According to Cai Weici, the industry will continue to operate at the bottom in the fourth quarter; the overall trend in this year could be characterized by plunging to the bottom in the early period and stabilizing and going slightly upward in the late period. In the first quarter or even the first half of next year, the economy is likely to continue to operate at the bottom, and macro-economy prosperity level would still be rather low, which would result in low level of demand for machinery products.

According to Cai Weici's estimation, in 2013, the operation of China's machinery industry would still stay at a rather low level, but it is still possible to expect two-digit growth. The growth of production and sales is estimated at around 10 percent, profit increase rate at 5 percent, and export growth rate at around 8 percent.

In Cai Weici's view, to improve the current operation situation of the machinery industry, we need to take measures against the two major problems of weak demand and excessive production capacity, and start with increasing effective demand and dissolving seriously excessive production capacity. On one hand, we should make every attempt to boost demand, increase policy support, and make solid achievement in the independent production of equipment. On the other hand, we should deepen market-oriented reform, vigorously create a favorable and fair competition environment for the updating and upgrading of the machinery industry, and protect enterprises' innovation initiatives.