In the first two months of 2014, the industrial value-added growth rate of machinery enterprises above designated size was higher than that of the same period last year and also higher than the national industrial level. According to the monthly report of the China Machinery Industry Federation, among the 64 products counted, 42 products saw cumulative year-on-year output growth, accounting for 65.63% of all reported product categories.

 

　　At present, with China's rapid economic development, significant progress has been made in enterprise scale, technological level, and product quality. However, compared with foreign manufacturers' machinery parts, there is still a certain gap, which can be clearly seen through data surveys. There are two important problems in China's machinery parts industry, which are discussed below.

 

　　First, the reliability problem of Chinese machinery parts

 

　　The reliability problem of Chinese construction machinery parts is a long-discussed issue. In the survey, 80% of respondents believed that the main disadvantage of domestic machinery parts compared with foreign-brand machinery parts is poor product reliability. Indeed, compared with advanced foreign levels, the reliability of Chinese construction machinery parts lags far behind, especially in transmission parts, hydraulic components, and electrical components, where damage, fracture, and wear frequently occur.

 

　　Second, the problem of technological innovation capability

 

　　The vast majority of respondents, 62%, believed that the main problem currently restricting the development of China's construction machinery parts industry is "technological innovation." The actual situation is just as the survey shows: there are a large number of Chinese construction machinery parts enterprises, but most are relatively weak and basically lack independent technological innovation capability. Therefore, copying and imitation have become the main means of product development. Before one product has even matured after being launched, similar products have already sprung up everywhere. As a result, products are homogeneous, and low-level redundant investment and construction are serious. The consequence is that host-machine enterprises cannot obtain the high-tech-content products they urgently need, or cannot produce them, handing them over to foreign enterprises. Meanwhile, low-tech products are in massive oversupply, creating vicious competition. This is why the entire machinery parts industry's sales have surged while profits have fallen sharply, greatly restricting the development of China's construction machinery parts industry.

 

　　How to better change this outcome still requires us to search and explore further, strengthen the company's own innovation capability, and reduce costs while ensuring product quality as an important means. In the future, green and environmental protection will certainly become the development trend of the machinery parts industry. In such an environment, we must align ourselves with this broader trend.