The pump and motor industry is the first pillar industry in Wenling City. After 30 years of development, it has won the title of “China Pump Industry City” and “Capital of China's Small Air Compressor”, and it has formed a prominent industry of Wenling Pumps and Electric Motors. Advantage. Among them, there are also disadvantages. Xiao Bian combined with related data to specifically analyze the Wenling pump and motor industry advantages and disadvantages, and avoid weaknesses, will provide ideas for Wenling pump and motor industry transformation and upgrading.

Industrial advantage

(1) Uninterrupted entrepreneurship

The Wenling pump and motor industry has grown from scratch to its current scale. The core driving force is the local entrepreneurial entrepreneurial team, which mainly embodies entrepreneurial passion, adventurous spirit, hard-working, and pioneering consciousness. Almost all companies are starting from scratch. They have strong entrepreneurial passions in the early days of their ventures. They dare to venture ahead, and they have an unyielding tenacity. They are not afraid of failure in the search for things, and they dare to try or fight back. In addition, faced with the prevailing conditions of lack of funds, few talents, no technology, and no market in the early days of entrepreneurship, the spirit of “four thousand and forty thousand”, that is, “across the mountains and rivers, speak a thousand words, and spend thousands of dollars” With hardships and hardships, we survived and developed in the cracks. Even if some enterprises have developed to a considerable scale, the entrepreneurial spirit of innovation and entrepreneurship still remains. This is the most precious spiritual asset for sustainable development of the industry. For instance, the chairman of Chengkang Group, although it has reached the age of retirement, it is still not satisfied with the current scale of the company, actively cooperates with international experts, seeks technological innovation and breakthroughs, and strives to make the company go to a higher level. The spirit is very valuable. .

(2) Flexible institutional advantages

According to the survey, over 99% of Wenling's pump and motor industries are private enterprises. Most of the private enterprises are small in scale and seek to survive and develop in the market. Therefore, they can be market-oriented, grasp the market demand and user characteristics, be flexible in business operations, and make decisions efficiently and quickly, and develop marketable products or provide personalized services. The private enterprise's project investment speed, efficiency, input-output ratio, and resource utilization rate are all at a relatively high level, and it is also relatively low in terms of procurement, manufacturing costs, inventory control, management expenses, and other production and operation cost control. Can form a certain price advantage.

(3) Abundant industrial facilities

Wenling not only has a large number of pump and motor machine companies, but also has a large number of cooperative supporting companies. With the gradual expansion of the number, size, and output value of pump companies, closely related parts such as die castings, cables, mechanical seals, rubber seals, enameled wires, and bearings have also grown. The development of cooperative supporting enterprises has enabled Wenling Pump and Motor Industry to have a strong industrial foundation and effectively reduced the production costs of the products.

(4) Sound Marketing Network

In order to open the market, nearly 10,000 Wenling people have been engaged in the marketing of pumps and motors throughout the country and abroad, and their footprints have spread across the provinces, cities, counties and townships across the country, making Wenling pumps and motors form a one-stop situation for production, supply, and sales. In recent years, some companies represented by Elliot, New Territories, Daewoo, Dongyin, Yiju and Feiyue have vigorously developed their export-oriented economy, successfully pumping Wenling pumps and motor products into markets in Southeast Asia, the Middle East, Africa, and Europe and the United States. Through years of efforts, the marketing network for Wenling Pump and Motor Industry for both international and domestic markets has been formed.

(5) Abundant private capital

After nearly 30 years of hard work, entrepreneurs in Wenling have accumulated relatively abundant funds and laid a solid financial foundation for the third venture. In addition, the current industry has formed a consensus on cash on delivery, so that the proportion of bad debts and accounts receivable is relatively low. According to the survey and statistics of 204 sample companies in Wenling, the current average total assets of the pump and motor industries in Wenling are 24.67 million yuan, and the average asset-liability ratio is 31.2%. From the perspective of the source structure, 30.4% of the funds are from banks, 60.9% of funds are self-financing, and 8.6% of funds are obtained through other channels.

2. Industry disadvantage

However, it should be noted that compared with the international advanced industrial clusters (eg, Italy), compared with the large-scale transnational corporations, compared with the external requirements of the transformation and upgrading of the industrial economy in our province, compared with the internal development of local economic and social development in Wenling Wenling pump and motor industry cluster still has many problems that need to be solved.

(1) Enterprises are generally small

On the whole, Wenling Pumps and motor companies have a lack of awareness and lack of strong capabilities. Large-scale enterprises still need to be nurtured. Leading and key enterprises need to be further strengthened and improved. Wenling pump and motor industry, the proportion of large-scale enterprises in the total number of enterprises accounted for only 12.5%, the proportion of enterprises above 100 million yuan is only 0.5%, the scale of more than one billion yuan of enterprises currently only Leo one. The existence of a large number of small businesses (many are home-based workshops) has greatly exacerbated the degree of competition in the industry, and companies are competing with each other to reduce prices. Some companies can only achieve low prices by sacrificing quality when costs cannot be reduced, leading to chaos in the market. In addition, the existence of a large number of small businesses has also increased the difficulty of industry supervision.

(2) The product is relatively low

Compared with more than 2,000 domestic pump types and nearly 5,000 foreign pump types, the Wenling pump and motor industry produces only dozens of series and nearly one thousand specifications, and mainly uses low-power pumps and agricultural pumps. More single. Compared with international advanced countries, especially with Italy and other countries, the technical grades have yet to be improved. The similarity of enterprise products, the apparent repetitive investment, and the appearance of foreign advanced products are still relatively large, and the added value of products is not high. Due to the low-end lock-in effect of the industrial value chain, the average unit price of Wenling pump products is only 200 yuan, still relying mainly on price advantage to dominate the market, corporate profitability is weak.

(3) Constraints on support elements

It is understood that the shortage of land resources is currently one of the major constraints faced by the Wenling Pump and Motor Industry. In Daxi Town, the main gathering place of the pump and motor industry, the industrial land use index is seriously deficient, and some technological reform projects cannot be completed. A small number of enterprises have moved to Shanghai, Jiangsu, and other off-site development because they cannot solve the problem. In addition, due to fire safety and building construction requirements, enterprises through the "Zero Land Technology Transformation", plant building to ease the space constraints, the handling of real estate license is more difficult. Among the 204 companies surveyed, 31.9% of the companies encountered the problem of land shortage.

The lack of human resources, especially high-level talent, is another major constraint. Except for some key enterprises that have the ability to employ professional technicians from across the country, most of the company’s technical talents are short of talents, especially the “comprehensive management, knowledgeable R&D, and good management” composite talents are lacking, and there is a greater mobility of talents and stability. Problems such as poor performance form a constraint on the long-term sustainable development of the industry. According to sample enterprise surveys and statistics, of the technical personnel of Wenling Pumps and Motors, only graduate students with a bachelor's degree or above accounted for 1.45%; those with university or professional qualifications accounted for 47.07%; those with senior professional titles accounted for 6.72%; and those with intermediate professional titles accounted for 26.23. %, junior professional accounted for 43.52%. Of the three major factors affecting and constraining the development of enterprises, 48.0% of companies have chosen “talent shortage,” and 12.7% of companies have placed this factor first.

(4) The ability of independent innovation is weak

From the perspective of corporate innovation, it is also not optimistic. According to the survey sample, there are still 49.2% of companies in Wenling Pumps and Motors companies that do not have special technical R&D departments. The proportion of investment in R&D funds as a percentage of sales revenue has increased significantly in the past two years, but the number of companies with lower R&D investment (less than 0.5%) remains high. In the past three years, a total of 2,538 new products have been successfully developed by sample companies. However, the vast majority are limited to the enterprise level, of which only 10 are state-level new products, 33 are provincial-level new products, and 112 are classified as municipal or municipal. product. In addition, the number of companies participating in the formulation of industry standards is also limited. The lack of enterprise innovation capability, especially the lack of original innovation capability, will inevitably lead to the mutual imitation of companies and serious homogenization of products, which is not conducive to the long-term development of the industry.

(5) Management capacity needs to be improved

In recent years, the Wenling Municipal Committee and the municipal government adopted a series of measures such as “please come in and go out” to improve the overall quality of the entrepreneurial team, but the management mode of most enterprises is still lagging behind. Wenling pump and motor companies mostly implement family-style management mode. This model adapts to the needs of the early stage of enterprise development. However, with the rapid growth of enterprises and the increasingly fierce competitive environment, this traditional management model has been unable to adapt to the new era. Competition requirements. If the enterprise institutional mechanisms are not innovative, do not establish a modern enterprise system and improve the corporate governance structure, and do not enhance the level of business management, it will be difficult to become bigger and stronger, and it may even be eliminated in the fierce competition. Of the sampled companies, 39.7% did not regularly formulate their development strategies and plans, only 41.2% had received management consulting services, and more than 60% of the sample companies considered that the consulting results “had a large gap with expectations” or It is expected that there will be a certain gap", indicating that the sample companies are not satisfied with the effectiveness of management consulting.

It is worth mentioning that in recent years, in the process of promoting the transformation and upgrading of the pump and motor industries, Wenling City has insisted on the combination of market guidance and government promotion, and based on the basic idea of ​​“integrally promoting, highlighting advantages, cultivating priorities, and eliminating backwardness”. Strengthen policy guidance in terms of resource integration, platform construction, base building, factor allocation, and layout optimization. Strengthen industrial coordination, strengthen industrial upgrading, and strengthen industrial support. Accelerate the promotion of enterprise upgrades, industrial transformation, and comprehensively enhance industrial competitiveness. Obvious results have been achieved.

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