Ship equipment manufacturing industry faces "price cut crisis"

Recently, some domestic media reported that since the low-margin shipbuilding orders have been received since the summer of this year, the demand for shipbuilding enterprises in China to reduce the price of ship equipment manufacturers has become stronger and stronger. Among them, private shipyards have greater price reduction requirements than state-owned shipyards. Due to price factors, some shipyards have spared no effort to cooperate with domestic shipbuilding companies and seek cooperation from lower-priced Korean companies. For the first time in the past year, the number of new orders for China’s shipbuilding industry surpassed Korea’s first in the world. A big impact.
Then, what caused the Chinese shipbuilding enterprises to wage a "forced price cut" battle for the ship equipment enterprises that were originally ruined? Liang Zhiyong, an industrial analyst at the China Shipbuilding Industry Economic Center, believes that this price war began as early as 2009. In 2009, after the severe impact of the financial crisis, the international shipping and shipbuilding market began a long recovery period, and just in 2009, the trend of price wars in the marine equipment industry was not obvious. On the one hand, at that time Hand-held orders from ship equipment manufacturers generally lasted until 2010 and the first half of 2011, that is, there was food to eat; on the other hand, the global shipyard's substantial demand for ship equipment was not yet in peak season. Therefore, the price war is neither necessary nor effective. Just last year, South Korean ship equipment companies adopted a strategy of price reduction and single-handedness, and seized a large number of large-scale businesses from similar enterprises in China. At the same time, Korean shipbuilding companies were stronger than China in terms of shipbuilding speed, efficiency and ship support. And the overall cost control is good, the same is the price cut, the profit margin of Korean shipbuilding companies is much larger than that of Chinese companies. Under such fierce market competition, Chinese shipbuilding companies have to go to their own upstream enterprises - ship equipment. Manufacturing companies have proposed price cuts.
In the first three quarters of this year, China's shipbuilding industry ushered in a favorable situation of rapid growth, but industry insiders believe that the current international environment of the shipbuilding industry has not changed. The current good situation of China's shipbuilding industry is based on the same period last year. On the basis of extremely low quantities, and now the effective demand for ships is still small, the overall development prospects of domestic shipbuilding enterprises in the future are not optimistic. As a ship equipment manufacturing industry in the upstream industry of shipbuilding enterprises, I am afraid I have to face this unstoppable price reduction trend. In this regard, China Ship Equipment Network pointed out that in response to this "price reduction crisis", China's ship equipment industry enterprises should do the following:
1. Vigorously promote the construction of cost engineering, and make achievements in many aspects such as procurement cost, construction cost, and management cost, control costs in a low tolerance space, improve labor productivity, and make up for the loss caused by price reduction. .
2. Introduce, digest and absorb foreign advanced ship equipment manufacturing technology as soon as possible, adhere to independent innovation, seize the market with technological advantages, and transform the "price war" into a "digital war."
3. Seriously study the excellent experience of Korean counterparts, continuously improve the overall cost control ability, enhance the quality of their own resistance to risks, and be ready to respond to the crisis at any time.

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