Three major problems to be solved in the decline o

Industrial boiler industry: three major problems of declining profit margin remain to be solved

"rising raw material prices, serious overcapacity, weak new product development capacity and less investment in renovation are the main problems of the industrial boiler industry." Cheng Qiyao, chairman of industrial boiler branch of China Electrical Appliance Industry Association, said recently

the profit margin continues to decline

"in recent years, the profit margin of industrial boiler enterprises has been eroded, and some specifications of products are at the breakeven point. Due to the rise in the price of main raw materials and the single product, the profit margin of 44.05% of enterprises has decreased, and even suffered losses. Enterprises with negative profits account for 10.71% of the total number of enterprises." Cheng Qiyao said

at present, there are more than 1000 domestic boiler plants above grade D, with a production capacity of more than 150000 steam tons, which is much higher than the market demand of 30000-50000 steam tons. Moreover, the products are very similar, and there are many conventional products, which leads to market competition and product prices falling again and again. While the cost of sales and operating expenses have increased year after year, the sales volume of enterprises has increased, but the profit margin has continued to decline

the data shows that the main business income of the industry is 12.189 billion yuan, with a year-on-year increase of 20.68%, and the growth rate of the main business cost is 3.11 percentage points higher than the main business income. In 2007, the operating expenses, administrative expenses and financial expenses of products increased by 36.7% and 27.64% year-on-year respectively. It can be seen that the cost growth of industrial boiler enterprises is still higher than the growth of sales revenue in the same period. The performance characteristics and ordinary protection of digital display electronic tensile testing machine. Many enterprises increase income but do not increase efficiency

the investment in scientific research and development and renovation of enterprises needs to be increased, and the development of new products needs to be further strengthened. Only 13 enterprises invested more than 10million yuan in science and technology, and 30% of enterprises basically had no science and technology investment. In addition, the development of new products is still not high, and the output value of new products in 2007 increased by only 10% over the same period in 2006

the branch puts forward four suggestions

for many factors that affect the development of enterprises, the branch puts forward four suggestions

first, it is hoped that the relevant government departments will strengthen macro-control, reduce excess capacity through strict access conditions and other measures, and standardize the market order, especially the bidding order, by strengthening the management of the market and its role in building brand image and improving flight experience. At the same time, it is hoped that the decision-making level of enterprises will strengthen management and self regulate market behavior. The transaction of a boiler is not only related to the price, but also to the delivery date, payment method, enterprise reputation and other factors. Enterprises should make more articles from the aspects of delivery date, user adaptability, product performance, quality, service and integrity

second, enterprises reduce costs by strengthening management, improve market competitiveness, and take brand management and technological innovation as the new mode of enterprise operation. First, integrate supply chain management into the overall business strategy of the enterprise, that is, comprehensively consider, design and plan the whole supply chain system in the product life cycle. Secondly, in the daily production and operation activities, it constantly optimizes the management of its supply chain system to better meet the needs of customers. Thirdly, adjust the organizational structure accordingly, focus on the core business and establish a good supplier system

third, enterprises should increase investment in scientific research and development. At present, the energy situation is very serious. The development of new products of industrial boilers should focus on coal-fired boilers to meet the needs of central heating and regional cogeneration development. Coal fired steam boilers mostly use chain grate, followed by circulating fluidized bed boilers. The sum of these two items has accounted for 75% of the development projects. At the same time, attention should be paid to the production of coal water slurry boilers, garbage incinerators, biomass fueled boilers, waste heat boilers and waste gas utilization boilers

due to the decline of performance, fourth, expand the export business of industrial boilers and auxiliary machinery. The export delivery value of 84 enterprises in 2007 was 746.3 million yuan, an increase of 32.74% over the previous year. The proportion of export delivery value in industrial sales output value increased from 5.34% in 2006 to 5.74%, an increase of 0.4 percentage points. This is not commensurate with the status of China as a big country in the manufacture and use of industrial boilers. There is a strong demand for industrial boilers in the international market. Only by constantly exploring the market can enterprises have greater profit space