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            Industry news

            Trillions of "new infrastructure" is coming, and demand for pump and valve equipment is expected to usher in a blowout in the second and third quarters

            Posted:2020/8/24 10:15:47

            On March 4, 2020, the Standing Committee of the central political office convened to propose that public health services and emergency material support field inputs should be increased to accelerate progress in the construction of new infrastructure, such as 5g networks and data centers.

            How does "new infrastructure" investment affect the pump and 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 supplies, and speed up the construction of new infrastructure such as 5G networks and data centers. The term "new infrastructure" has sparked heated discussions from all walks of life.


            At present, 13 provinces and cities have issued a list of investment plans for key projects in 2020. The investment list includes a total of 10,326 projects. According to E20 estimates, out of the 6.35 trillion new infrastructure investment in 15 provinces and cities that are currently known for 2020, 402.5 billion will be completed in environmental projects this year.


            According to analysis by industry insiders, the increase in investment in some water and water conservancy projects will directly benefit the manufacturers of pump, pipe, valve and equipment:

            In the water treatment sector, cities and counties are facing opportunities for upgrading and upgrading. Purification of urban sewage or sewage treatment plant tail water as a supplement to water-deficient cities is an important direction for current development; there are huge shortcomings in rural sewage treatment, and there is room for improvement in the future. Larger; the long-term strategy of river basin management at the level is good for the comprehensive management of the water environment.


            On the other hand, in the key project investment plans announced by various provinces and cities, there are also a large number of highways, intercity high-speed rail, science and technology parks, and squares. Although these projects are not as closely related to the pump, pipe and valve industry as environmental protection, they are of scale. Larger (accounting for more than 50% of the overall infrastructure investment plan in 2020), the demand for pump valve equipment is huge.


            All in all, under the impact of the new crown virus epidemic, exports and consumption in the troika of economic growth have been greatly affected, and the entire society has even fallen into a "shutdown" state for a while. Under such circumstances, my country has increased investment in infrastructure construction, trying to use investment to recover the economic losses caused by the epidemic.


            As a national general-purpose equipment, pump, pipe and valve equipment has a small demand elasticity. The impact of the epidemic only delays the purchase schedule of downstream customers, but the overall demand will not decrease. If you include the increase in environmental protection and infrastructure in 2020 The domestic demand of the pump and valve industry has increased to a certain extent this year. With the stabilization of the domestic epidemic, the resumption of work and the commencement of projects, we expect that the demand for pump valve equipment procurement is expected to usher in a blowout at the end of the second quarter and the beginning of the third quarter.

            In 2020, we had an "eventful spring". The domestic epidemic gradually calmed down, but the foreign epidemic showed a trend of spreading. It is foreseeable that this year's pump valve exports will encounter many difficulties and obstacles, but domestic demand will increase. It is particularly important to grasp the domestic market demand, especially the incremental orders for environmental protection and engineering.


            The 9th Shanghai International Pump & Valve Exhibition helps exhibitors win business opportunities

            The 9th Shanghai International Pump and Valve Exhibition (referred to as "Shanghai Pump and Valve Exhibition") is the industry's high-quality pump and valve exhibition, which will be held on August 25-27, 2020 at the Shanghai National Convention and Exhibition Center (Hongqiao). The scale of the exhibition exceeds 70,000 square meters, with more than 1,200 exhibitors gathered, and more than 60,000 professional visitors are expected to come and visit.


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