China's printing equipment manufacturing industry under the impact of the epidemic

 At the same time, the international epidemic continues to spread, the downside risk of the world economy intensifies, and unstable and uncertain factors increase significantly. In the face of severe and complex international epidemic and the world economic situation, we should adhere to the bottom line thinking and make ideological and work preparations to deal with changes in the external environment for a long time.

Since the outbreak of the epidemic, the printing industry has taken positive actions, focusing on epidemic prevention and control on the one hand and returning to work and production on the other hand. While trying to stop losses and save themselves, it has constantly explored new business models and enterprise transformation. Facing the current severe development situation, we need to carefully sort out the impact of the epidemic on industry enterprises, seek effective countermeasures, how to minimize the impact of the epidemic on enterprise development, and how to develop industry enterprises after the epidemic, which is worthy of our in-depth research and thinking.

1、 Current situation of economic development at home and abroad under the epidemic situation


In early 2020, a sudden COVID-19 disrupted the pace of life and work for all. The epidemic has had an important impact on China's real economy. Impact on consumption and service industry, especially catering, tourism, film and television entertainment industry. With the effective control of the domestic epidemic, the foreign epidemic continues to spread, resulting in the contraction of foreign demand, and the orders of enterprises focusing on foreign trade business have been cancelled. At the same time, the interruption of the global value chain has also increased the difficulty of returning to work and production at home.


The epidemic has a great impact on the global manufacturing industry. In March 2020, the global manufacturing PMI (purchasing manager index) rose by 0.4 percentage points over the previous month, but remained at a low level of 47.8%, running below 50% for two consecutive months. Under the joint action of the gradual control of the epidemic situation in China and the supporting policies related to the resumption of work and production, the recovery of the manufacturing industry was accelerated, and the PMI of the manufacturing industry rebounded significantly.


Judging from the regional performance, the spread of COVID-19 has a significant impact on the global economy. PMI of manufacturing industry in Asia, Europe, America and Africa are all below 50%. Among them, the PMI of manufacturing industry in Asia rebounded compared with the previous month, and the PMI of manufacturing industry in Europe, America and Africa decreased to varying degrees compared with the previous month.


2、 Current situation and future development direction of China's printing equipment manufacturing industry


With the pace of China's printing industry entering a large printing country, the printing equipment manufacturing industry has gone through a brilliant development process. With the gradual improvement of industrial technical equipment level and product technical standards, China's printing equipment manufacturing industry will also usher in new development opportunities. While promoting China's printing industry to become a printing power, it will better realize the vision and goal of industrial globalization.


In the development process of China's printing equipment manufacturing industry, there are also some practical problems that need to be fully understood and solved by industry enterprises. Take offset plate and blanket industry as an example.


In 2019, the annual production capacity of the domestic offset plate industry was about 480 million square meters, ranking first in the world for many consecutive years. Among them, there are 16 enterprises with an annual output of more than 10 million square meters or close to 10 million square meters, accounting for more than 80% of the country's total output. At present, there are two main problems in China's offset plate manufacturing industry: first, the industry competition is fierce and disorderly. Low-end plates do not pay attention to quality and compete at low prices, which lowers the understanding of international buyers of Chinese products, damages the brand image of Chinese products and slows down the process of capacity transfer; Second, there are serious technical barriers. Most advanced technologies are in the hands of several large international companies such as Europe, America and Japan, which is unfavorable to the development of domestic brands.


To solve these problems, on the one hand, industry associations and leading enterprises should play the role of guidance, guidance and standardization, at the same time, accelerate industry integration and eliminate low-end and low-cost production capacity as much as possible; On the other hand, major domestic enterprises should increase R & D investment, accelerate technological progress, accelerate equipment renewal, strengthen talent training and introduction, strengthen technical cooperation and exchanges among enterprises, and shorten the technology and equipment gap between domestic enterprises and their counterparts in Europe and the United States.


China's offset plate manufacturing industry with the development direction of "green environmental protection, high-speed intelligence and fine double coating" will continue to show a growth trend with the transfer of global manufacturing base.


Due to the advantages of raw materials and the whole industrial chain, the progress of domestic brands will be accelerated. It is believed that CTP plate production capacity will continue to transfer to China in the next 3 ~ 5 years, and Chinese manufacturers will usher in great development opportunities. As European and American customers have high requirements for product quality, there are few enterprises that can meet the requirements of these customers. Therefore, in the next few years, a new pattern will appear in the domestic printing plate industry, and several enterprises with production capacity and technical level up to international standards will emerge, and the market share will be re divided.


China's offset plate industry should seize the opportunity, summarize the development experience in the past 40 years of reform and opening up, explore new development models, strengthen the research and development of new green products and materials in the offset plate industry, and promote industrial upgrading and transformation. One belt, one road initiative is also put forward to vigorously promote international cooperation and exchanges among industry enterprises, make full use of various international exchange and cooperation platforms, and actively and steadily aim at the overseas printing gathering areas and the fast developing areas of new printing industry. Realize broader and in-depth market expansion and provide services for offset plate manufacturers to accelerate their products to the international market.


China's blanket industry has passed the period of blind volume and price competition. Under the current epidemic situation, the reduction of printing foreign trade orders has a certain impact on the market demand for rubber blanket, and the export of printing rubber blanket has also been seriously hit. The port has been closed and foreign trade has been suspended, so it is difficult to estimate the prospect. How to refine the product structure, provide targeted and personalized services to printing enterprises, make great efforts to improve the production process, meet the overall requirements of the state on green printing, and make the production requirements more harmonious with the living environment is a problem that rubber blanket production enterprises should think deeply.


Specifically, on the one hand, enterprises should consider how to reduce the emission of production waste gas (VOCs) and improve the utilization rate of materials (reduce the generation of hazardous solid waste), which can not only effectively reduce the production cost and improve the competitiveness of products, but also make the production and environment more harmonious, promote the economic benefits of enterprises, but also improve the living environment of future generations, Earnestly shoulder the due social responsibility of the enterprise; On the other hand, we should actively respond to the requirements of national environmental protection policies. We can actively improve and develop UV blanket with different properties to meet the market demand. UV printing has been specially applied in various printing materials and surface finishing because of its application flexibility, which provides creative opportunities for printing buyers to highlight product differentiation and add functional features to products. UV printing can provide value-added services for existing customers and attract new businesses. In some cases, UV printing and glazing reduce the overall cost compared with other processes. UV printing is a highly reliable process. UV ink can be considered as a material that meets the requirements of environmental protection.


3、 How will printing enterprises survive in 2020


This year is the end of the 13th five year plan and the beginning of the 14th five year plan. Facing the future development, industry enterprises are full of ambition. In the early 2020, the sudden and rampant COVID-19 caused serious impact on China's printing equipment manufacturing industry. Domestic and foreign orders were reduced, transportation of raw materials was blocked, employment was tight, production safety was restrained, and revenue declined. In the face of the epidemic situation, industry enterprises actively responded to the instructions and calls of the party and the government and fully invested in epidemic prevention and control and resumption of work and production.


The impact of the sudden epidemic on enterprise operation is mainly reflected in the following aspects:


Cash flow: the pressure is huge, and the sales in the first quarter was seriously damaged, but the fixed expenditure cost still exists, and the income can't make ends meet.


Supply chain: it is difficult to ensure the supply of raw materials, the upstream raw material suppliers are affected by the epidemic, the personnel can not be fully in place, and the upgrading of epidemic prevention and control measures leads to a decline in output.


Logistics: logistics lag leads to delivery lag.


Transportation: the transportation channel is basically smooth, but it takes more time than usual.


Recruitment: foreign employees cannot return to their posts, enterprises cannot start work normally, there are few personnel in the market, and entry physical examination cannot be done, showing a vicious circle, resulting in delayed resumption of work and reduced orders.


How can enterprises survive at present? From a large perspective, we should actively plan response measures, tap the internal potential of the enterprise, expand the opportunities for upstream and downstream development, and do a good job in enterprise management with lean production. In terms of specific measures, the enterprise shall make preparations in advance for all environmental sanitation conditions for commencement, grasp the trend of employees at the first time, arrange employees to return as soon as possible, and return to work successively after isolation locally. Even if it is impossible to start work by all employees, some employees can start work and resume production first; Secondly, do a good job in internal training, so that employees can further improve their basic ability, product quality, research and development of new products and so on; Externally, we will make full and effective use of the network and existing channel resources, stabilize important customers, serve key customers well, be urgent for customers, and drive the expansion and growth of customer base; Finally, timely pay attention to the support and preferential policies of the state and local governments and make full use of them.


At present, the whole society and the whole industry will inevitably be impacted and affected. In the first quarter, the revenue of most enterprises in the whole industry was in double digits. If it can be controlled before May, it should show an upward trend in the second half of the year. The essence of the industry is not greatly affected. It is a necessity and consumable. It can develop normally after excluding external factors.


Sunshine always comes after the rain. Difficulties are not terrible. In the process of social development, we will always encounter difficulties of one kind or another; The epidemic situation is not terrible. The worldwide anti epidemic struggle will eventually subdue the virus, the common enemy of mankind. In the face of difficulties and epidemics, confidence is more important than gold. ***

(source: China printing, No. 3, 2020)