Instrumentation industry operating loss market or its own factors?

[China Meter Network Market] There are losses in business development, and no one can guarantee that it will always be a business without losses. The operation of the company will affect the development of the entire industry. Under the big market environment, we will look at the operating losses of the instrumentation industry from January to October 2015.

In 2015, the instrumentation industry has been growing steadily. The development trend is good, but there are always losses. According to statistics, from January to October 2015, there were 700 loss-making enterprises in the instrumentation industry, with a loss of 3.346 billion yuan, a year-on-year increase of 42.45%. The growth rate of this data makes people feel bizarre, not that the growth of the instrumentation industry is good? How can there be such a large loss of data? Although the development trend of instrumentation this year is relatively good, there are also losses in the enterprise. Only a few companies develop rapidly. Some enterprises are in a low-speed growth state in the balance, and about 20% of the enterprises are in a loss. This leads to the entire The industry has seen the above loss data.
(Data from Shanghai Instrument and Meter Industry Association)

From the above chart, the loss of instrumentation business from January to October 2015 rose month by month. The losses of the instrument industry rose from 21.74% in January and February to 42.45% from January to October, and the loss increased by almost 20%. %. However, a closer look at the growth of instrumental instrument losses, but the proportion of instrumentation is relatively small, and the proportion is declining month by month, instrument loss ratio fell from 5.47% in January-February to 1.10 to 1.10. %, the data shows that the development of the instrument industry is optimistic. In contrast, the loss of machinery is much more serious.
(Data from Shanghai Instrument and Meter Industry Association)

After reading the industry's loss situation, let's take a look at the losses in major provinces and cities. The chart shows that Jiangsu's loss intensity is the largest, accounting for 41.83%, followed by Shandong Province, occupying 10.44%, and then to 8.31% of Guangdong Province. The loss intensity in Jiangsu Province is the lowest, accounting for only 2.40%. The major reasons for the large loss intensity of the instrument industry in Jiangsu Province are as follows: 1. The development of the instrumentation industry in Jiangsu Province started late, the development base was relatively poor, the product structure was incomplete, and the scale was not large, which led to the phenomenon of difficult business development. Second, the impact of the market. Regardless of whether it is international or domestic, the instrument industry market is in the form of weak demand. Unfavorable factors affect the development of the instrument industry in Jiangsu Province.

This year, the development of China's instrumentation industry maintained a good momentum of growth. Why did 700 million large-scale loss-making enterprises emerge? One of the reasons is that the cost of production in the industry has risen. Although the growth rate of production and sales in the general instrumentation industry is high, the increase in the main profit of industry enterprises is not high. Moreover, with the emergence of the minimum wage standard for all provinces and cities, labor costs have risen, but operating costs and corporate management costs have not declined, resulting in a high cost of the instrumentation industry. Actually, not only the instrumentation industry is in such a state, but the overall environment is such a situation. Especially for small and medium-sized enterprises, the difficulty of capital financing leads to a loss. The second reason is that China's instrumentation industry has fierce market competition and it is far from the international market. The development of China's instrumentation industry was relatively late, and many technologies lag behind the international. Although some products of the instrumentation industry in China have achieved breakthrough development in recent years, they are still inferior to international mature technology products. At present, many companies' products are imported, and domestic products are in a wait-and-see state, which has led to a weak demand for the instrumentation industry in China, and the company is naturally in a loss situation.

The development of China's instrumentation industry under the influence of many factors, although the loss amount is increasing, but it is still in a steady state of growth. China's instrumentation industry enterprises must overcome difficulties and open up new paths for the development of the industry.

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