After decades of development, China’s valve industry has developed thousands of valve manufacturers. Although there are a large number of them, most of them are small in scale. Many enterprises in the industry have problems of duplicate investment and insufficient technological innovation. Many township enterprises are developing rapidly, but their technology starting point is low, and they are in the primary stage of imitation production. The main products produced are low-tech and low-quality mass products, lacking core competitiveness.

In addition to some foreign-funded enterprises and a few leading domestic enterprises, most domestic valve enterprises still have serious product homogeneity, mainly for the domestic low-end market, and low-cost competition as the main problem. Many small and medium-sized enterprises do not pay enough attention to R&D, product innovation, and fall into a vicious circle in the slowing market environment.

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As a result, some enterprises have sought Shanzhai and survived with inferior products. “Valve counterfeit products are more, Denver, Emerson and other brand control valves in China’s popularity and market share are very high, criminals see business opportunities.” Industry insiders said that, in addition, due to the relative lag of relevant product standards, the market has been in chaos in the past few years. At present, this situation is improving.

The short board of insufficient innovation is the fatal defect of many small and medium-sized enterprises. In recent years, the shortage of labor force and the rising cost of human resources have also brought inconvenience to the integration of production organization and supply chain resources. In addition, with the continuous improvement of customer’s quality requirements, management costs and testing costs are rising; some enterprises lack the stamina of new product research and development, and the industry lacks the guidance of cutting-edge technology, basically relying on the enterprises themselves to feel the stones across the river.

Some of them have less original technological innovation and more and more homogeneity in the industry, which also reflects the gap between domestic enterprises’professional talent reserve, scientific research and innovation ability and international brands to a certain extent, which also brings the hidden danger of “insufficient power” to the rapid development of enterprises.