Who Is Responsible For The Slow Growth Of Automation Market?

- Jan 15, 2019-

According to market research data, thanks to the adjustment of China's economic policy, the change of international political environment, the continuous pressure of environmental protection policy and the gradual rise of manufacturing costs in the first half of 2018, China's industrial automation maintained a steady growth of more than 10% year-on-year in the first half of 2018.

The overall market of China's industrial automation has continued the growth momentum in 2017, but the follow-up growth momentum is relatively insufficient.

At the end of 2018, reviewing the ups and downs of the automation market in one year makes all industrial controllers feel sad. "Internal worries and foreign troubles", before wolves and after tigers...

Dropping Cars

In the past 2018, the automobile market has handed in an ugly answer. According to a survey conducted by Auto Industry Cafe and Wilson Company, the overall auto market price in 20 major cities in China in early December was 79.3% (approximately equivalent to the terminal retail price/official guidance price), down 0.4% annually, and by early December, the total price had fallen by 6.2%.

Automation market growth slows down, who should be the backbone?

According to the data released by the Ministry of Industry and Information Technology in December last year, in November 2018, China's automobile production and sales completed 2.498 million vehicles and 2.548 million vehicles respectively, down 18.9% and 13.9% respectively from the same period last year, while in the first 11 months of 2018, the figures were 25.325 million vehicles and 25.42 million vehicles, down 2.6% and 1.7% respectively from the same period last year.

Automation market growth slows down, who should be the backbone?

It's not just at home that it's so depressed. In the last month of 2018, General Motors announced significant layoffs, followed by Morgan Stanley analysts'report on December 3 that Ford's $11 billion restructuring plan could reverse 25,000 employees' unemployment, far exceeding GM's announced 15,000 layoffs.

As the so-called "husband sings with wife", the performance of the automobile market is weak, and the automobile industry automation market naturally "has to bow". According to market research data, China's automotive industry automation market growth slowed down significantly in the third quarter of 2018, and it is expected to maintain a small growth trend in the fourth quarter, with an annual growth rate of about 10% in 2018.

Speaking about cars first, it's not about cars. After all, it's not just automobiles that fared badly in 2018.

Mobile Phone with a New Face

Not only automobiles, but also mobile phone industry has been labeled as "cold winter industry" by industry people. According to the domestic mobile phone market sales data of China Information and Communication Research Institute in November 2018, the domestic mobile phone market shipments fell 18.2% and 8.2% year-on-year, while in January-November 2018, the domestic mobile phone market shipments fell by 379 million units, 15.6% year-on-year.

Not only at home, but also abroad. Global smartphone shipments in the third quarter of 2008, released by IDC, a research institute, fell 6% from a year earlier to 355.2 million units in the third quarter, the fourth consecutive quarter of year-on-year decline. Sun Wenping, president of Shenzhen Mobile Phone Industry Association, said: The mobile phone industry has ushered in winter.

According to IDC statistics, in the third quarter of 2018, Samsung, Huawei, Apple, millet and OPPO occupied 80% of the global market. Samsung's mobile phone market declined 13.4% year-on-year.

Automation market growth slows down, who should be the backbone?

In addition to intuitive data, mobile phone manufacturers'"living methods" also let the industry have a deep understanding. It is understood that on the day of "Double Twelve" in 2018, the rumor of the shutdown of Tianjin Samsung Factory gradually fermented. In the same month, Jin Liye, a domestic business mobile phone, declined. In addition, the official network of Hammer Technology is out of stock, and the layoffs have already been carried out. Can Luo Yonghao, a famous cross-talk artist, help the company resume its business?

Time has come in 2019, the voice of the mobile phone industry is still in the air: on January 11, Apple's iPhone 8 and other models sold on platforms such as Beijing East and Tianmao all experienced price reductions in varying degrees... In the previous three months, Apple's market value shrank by more than $450 billion. At present, the technology giant is carrying out self-rescue, and price reduction is a means of clearing inventory.

Such a variety will inevitably lead to the distrust of the capital market on the mobile phone industry. Once the capital chain is broken, there is only one way for mobile phone manufacturers to go: stop production. However, whether the revolutionary communication technology, 5G, will be the year when the mobile phone industry resumes its business is still very much to be expected.

"Weaned" Photovoltaic

Whether the capital market is confident or not, the impact on an industry is most profoundly reflected between the ups and downs of the photovoltaic industry in 2018.

Looking back on 2017, the domestic photovoltaic market is in a good situation: the newly installed machines exceed 53GW, an increase of more than 50%. By the end of December, the cumulative installed capacity exceeded 130GW, with new and cumulative installed capacity ranking first in the world. By May 2018, a new policy, "no shortage of milk, development" of the photovoltaic market was hit. Strictly control the scale and reduce subsidies... Such policies expose the entire photovoltaic market to the sub-risk of shuffling. Stopping production and bankruptcy is a problem that many small and medium-sized enterprises have to consider in the second half of 2018.

According to the industry control editorial, the "5.31 New Deal" of photovoltaic industry has an immediate impact on the industry. From the overall market of photovoltaic industry, the sales price of the main products in upstream silicon materials, batteries, components and other links declined, resulting in the increase of enterprise output but no increase in revenue, and the net profit of many listed companies declined or even the profit was negative. It is reported that, since the New Deal, New Energy listed companies have dropped and stopped continuously, with market value loss of more than 300 billion yuan; many enterprises have been forced to stop production, shut down assets of more than 200 billion yuan, and the industry has been seriously damaged; secondly, non-technical factors have pushed up the cost of domestic photovoltaic power generation, and photovoltaic subsidies have been delayed.

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