Small Motor Industry Is No Increase In Interest Income During The First Half Of 2007 - Appliances,

Shanghai Motor Industry Association, according to the National Electrical Industry

56 small and medium enterprise statistics, during the first half of this year, the industry output value 15 billion yuan, up 21.2%; sales income of 15.29 billion yuan, up 25.5%; and industry profits down 13.4%, showing a decline in sales growth and profits phenomenon. The industry believes that due to low profits in high-cost environment, the electrical enterprises should pay more attention to quality and service; the same time, industry-wide restructuring in the context of the accelerated pace of the second half of medium and small motor industry growth will not be less than 17%.

Rising costs led to falling profits

Experts say, raw materials, fuel and power purchase prices, etc. is an important reason for lower industry profit. Although the motor industry has raised prices, but the gains far below the cost increase. In fact, signs of rising costs began to show from the end of 2005. In 2006, the motor industry as raw materials, loss of profits of several hundred million dollars higher.

As raw material prices, the original on the marginal profit of the industry more difficult. On the other hand, did not yield sufficient recovery difficult to achieve investment returns, which have inspired the company's production increased, resulting in a decline in sales growth and profit situation.

In addition, expert analysis, the National Development and Reform Commission, Energy Office "on speeding up shutting down small thermal power units of a number of opinions" since the implementation of "the scale of paper" work is all localities and departments in full swing. By the impact of this policy, power generation equipment industry in small units of production enterprises, including small power station boilers, steam turbines and generators for small businesses has been significant reduction in orders signs.

The same time, the change from major industrial sectors also have an impact on the electrical market: paper, rolled steel, rubber, real estate investment industry is relatively slow pace, lack of market demand led to a part of DC motors and AC motors to reduce demand .

Experts believe that motor manufacturers need to adjust the product mix, rapid increase in device efficiency AC motor technology, and strengthen self-discipline, guide enterprises to shift from pure price competition for quality and service competition.

15% -20% annual growth

For the second half of the market, some experts predict, in the second half Motor Trade restructuring, technological upgrading and industrial restructuring trends will become more apparent. For the full year, small motor industry will maintain a 15% -20% of the growth momentum.

The one hand, electrical demand in a considerable period of stabilization, AC motor considerable international market demand, and will continue at a rapid growth phase. With the motors further expand overseas markets, small motor in the export quantity, variety, products, and foreign exchange will be a major breakthrough.

The other hand, automobiles, home appliances, consumer goods industry's rapid development will expand the motor industry needs space, many manufacturers of the European Union, the American export market is also very optimistic about the prospects motor. Power, petrochemical, metallurgical industries, the trend of effective demand will stabilize motor market. For agriculture, rural areas, the farmers, "Agriculture" products and environmental products will also be a small motor in the "new favorite."

Industry believes that if the State macro-control in the second half there was no major policy changes, the electrical industry will continue to run the first half of a good trend to see from the growth rate, growth in the second half of 2007 will not be less than 17%.

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