Inadequate ordering has affected the overcapacity in China's machinery industry

Affected by the lack of orders, the current overcapacity situation in China's machinery industry is highlighted. The reporter learned from the news conference of the 2011 economic operation of the machinery industry held on the 13th that due to the slowdown in investment in the user industry and the intensification of turbulence in the export market, since 2011, the market demand for machinery products has been weak, and the inventory of finished products has increased year-on-year. It is basically at a high of about 20%, far higher than the level of about 10% in the previous two years. At the same time, the growth rate of corporate orders has decreased significantly, and the survey statistics of key industrial enterprises in the machinery industry show that the year-on-year increase in accumulated orders has dropped to about 6%, which is significantly lower than the level of more than 30% in the same period of last year. Insufficient orders further exacerbated the contradiction of overcapacity.

This situation will continue or worsen this year. Cai Weici, deputy chairman of the China Federation of Machinery Industry, said that the overcapacity situation in the machinery industry will exist for a long time. The growth rate of the major economic indicators of the machinery industry this year will be less than in 2011. Wang Yanmei, an associate researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, analyzed that the overcapacity in China's machinery industry is mainly manifested in structural overcapacity, and the demand structure has been adjusted and upgraded faster than the supply structure.