How will the new capital investment affect the pump valve industry?
How will the new capital investment affect the pump valve industry?On March 4, 2020, the Standing Committee of the Political Bureau of the Central Committee held a meeting and proposed to increase investment in public health services and emergency material support and accelerate the progress of new infrastructure construction such as 5G network and data center.The term "new infrastructure" has aroused heated discussion from all walks of life.
At present, 13 provinces and municipalities have issued a list of key project investment plans for 2020, which includes 10,326 projects.E20 estimates that 402.5 billion environmental projects will be completed this year out of the current known 6.35 trillion new infrastructure investment in 15 provinces and cities in 2020.
Industry insiders have analyzed that investment in some water conservancy projects has increased, which directly benefits manufacturers of pump, pipe and valve equipment:
In the water treatment section, the upgrading and transformation of urban and County cities usher in opportunities. It is an important direction for current development that tail water of municipal sewage or sewage treatment plant is purified as the supplement of water source in water-deficient cities. There are huge shortcomings in rural sewage treatment and there is a large space for improvement in the future. The long-term strategy of river basin management at the national level is favorable for comprehensive treatment of water environment.
On the other hand, a large number of highway, inter-city high-speed railway, science and Technology Park and Plaza projects are included in the investment plans of key projects announced by provinces and cities. Although these projects are not closely related to the pump valve industry as environmental protection, they are larger (accounting for more than 50% of the total capital investment plan in 2020), and demand for pump valve equipment is huge.
In short, under the impact of the new crown virus epidemic, the export and consumption of the economic growth trolley have been greatly affected, and the whole society has even been put into a "standstill" state for a time.Under such circumstances, China will increase investment in capital construction to try to recover economic losses caused by the epidemic.
As a national equipment, the demand elasticity of pump valve equipment is small. The impact of the epidemic only delays the purchase schedule of downstream customers, but the overall demand will not decrease. If the incremental investment in environmental protection and infrastructure in 2020 is added up, the domestic demand of pump valve industry will increase by a certain amount this year.With the stabilization of the domestic epidemic, the resumption of the enterprise and the commencement of the project, we expect that at the end of the second quarter and the beginning of the third quarter, the demand for pump valve equipment procurement is expected to wellblow.
In 2020, we had a "multi-event spring". The epidemic in China gradually calmed down while the epidemic in foreign countries spread.It is foreseeable that this year's pump valve outlet will encounter many difficulties and obstacles, but domestic demand will increase, so it is particularly important to grasp the domestic market demand, especially incremental orders for environmental protection and engineering.
9th Shanghai International Pump Valve Exhibition Helps Exhibitors Win Business Opportunities
The 9th Shanghai International Pump Valve Exhibition (Shanghai Pump Valve Exhibition) will be held at the Shanghai National Convention and Exhibition Center (Hongqiao) from August 25 to 27, 2020. The exhibition will cover more than 70,000 square meters and bring together more than 1,200 exhibitors. More than 60,000 professional visitors are expected to attend.
