The Gate of the Boost of Mining Equipment Industry

Seen from development history the mining equipment industry in our country, the whole industry didn't experience long term accumulation and development process, but promotes our country to become a mining equipment manufacturing power in a short period of time alone with the promotion of reform and opening-up and urbanization construction. Such reasons as the lack of accumulation process, blindly follow suit of the development model, old-fashioned business pattern and so on lead to that our country can only be called a big mining equipment manufacturer, but to become a strong and powerful country, this industry still has a long way to go.

The benefits of the mining boom have peaked and the federal government must abandon its commitment to a budget surplus by 2012/13, a new study says. The boom is no longer boosting growth in the China’s economy nor contributing to additional improved welfare for Chinese citizens. The positive effects of the boom have become more muted, while the negative effects are becoming more pronounced. The economists say the high exchange rate has left local industries such as manufacturing, tourism and education vulnerable, threatening jobs and slowing the economy.

For a long period of time, the development pattern in this industry has been oriented with extensive form, which is able to make the business gain fast growth in short time, but lead to such problems such as high interdependency on external countries and companies, low additional value of the products, weak competitiveness and blind expansion of the production capacity to show up.

Without the ongoing boost from mining and with the economy slowing this is no longer appropriate. Further reductions in interest rates by the People’s Bank of China may be necessary to boost spending and stimulate the economy.

Seen from many traditional industries development perspective, in their development process, they have experienced structure adjustment and industrial upgrade stage, and mining equipment industry of course is no exception. As the current situation, making necessary adjustment should be a priority, and it is imperative to realize the industrial transformation from extensive style, mimicry type, quantity to scientific and technological innovation, quality and efficiency, improve product information level, speed up the products of intelligence, digital and visualization and remote fault diagnosis and communication technology upgrades. Supported by its powerful production team like manufacturers and producers, Hongxing Machinery has gained the trust of many consumers all over the world. In addition, when an enterprise is develop new market, it is necessary to make scientific and technological investment on the existing product lines to produce high value-added products in order to enhance product market competitive power, especially in export products field.