A brief discussion on the direction of the air compressor industry under the influence of the new crown epidemic
Author: Bella Zhang
By September 2022, big data shows that the global market is still relatively exhausted. Cement, steel, textiles, building materials, and manufacturing industries have all suffered to varying degrees, and the operating rate of individual industries has hit a record low. Under the severe situation of the weak global market, compressor companies, as the main body of the industrial chain, have shown two poles.
Differentiation trend: One is that the compressor companies that have been operating the brand for many years, product quality and reputation are excellent, and the compressor companies that anchor the middle and high-end customer groups have been affected by the epidemic, but their performance has not been greatly affected, but has increased. From this point of view, brand and quality can indeed bring opportunities for companies to grow. The other is that companies that partially target low-end target customers in compressor manufacturing are affected by the dual factors of market weakness and rising raw materials caused by the epidemic. Business operations are in a vicious circle. While market sales are shrinking, upstream suppliers have also tightened their supply conditions out of risk control considerations, making it more difficult for some low-end compressor manufacturers to survive. The compressor industry at this stage is described by the "Matthew Effect". The stronger the stronger, the weaker the weak. The "winner takes all" situation is no longer hearsay and book theory, but a challenge that the global compressor industry must face. Reality!
In the future, the extensive growth model of starting with price and winning with quantity will fail due to declining demand and squeezed profit margins, and the value of brand and quality will be highlighted like never before. It is not only the choice of different development routes of enterprises, but also a weapon to resist market risks!
The weak market we see is really weak, but this does not mean that companies do not have the bright spot of "jedi counterattack". Whether it is now or in the future, SEN Compressor will persevere in quality and brand building, which will be an eternal theme!