New Infrastructure Is Coming

- Apr 24, 2020-

Trillions of "new infrastructure" is coming, and the demand for pump and valve equipment in the second and third quarters is expected to usher in a blowout

How does the "new infrastructure" investment affect the pump and valve industry?

On March 4, 2020, the Standing Committee of the Political Bureau of the Central Committee held a meeting and proposed to increase investment in public health services and emergency supplies, and accelerate the construction of new infrastructure such as 5G networks and data centers. The term "new infrastructure" has aroused heated discussion from all walks of life.

At present, 13 provinces and cities have issued a list of key project investment plans for 2020, and this investment list includes a total of 10,326 projects. According to E20 estimates, among the currently known 6.35 trillion new infrastructure investments in 15 provinces and cities in 2020, 402.5 billion environmental projects will be completed this year.

Industry insiders analyzed that increased investment in some water conservancy projects directly benefited pump, valve and equipment manufacturers:

In the water treatment sector, cities and counties are faced with opportunities to raise their standards. Urban sewage or sewage treatment plant tail water is used as a supplement to water-scarce urban water sources through purification. Larger; the long-term strategy of river basin governance at the national level facilitates comprehensive water environment governance.

On the other hand, there are a large number of engineering projects such as highways, intercity high-speed rail, science and technology parks and squares in the key project investment plans that have been announced by various provinces and cities. Although these projects are not as closely related to the pump, valve and valve industry as environmental protection, their scale is Larger (accounting for more than 50% of the overall infrastructure investment plan in 2020), there is the huge demand for pump and valve equipment.

All in all, under the impact of the new coronavirus epidemic, exports and consumption in the troika of economic growth have been greatly affected, and the entire society has even fallen into a "stop" state. Under such circumstances, China has increased its investment in infrastructure and tried to use the investment to recover the epidemic and cause economic losses.

Pump and valve equipment, as a national general equipment, has a small demand elasticity. The impact of the epidemic only delays the purchase schedule of downstream customers, but the overall demand will not decrease. If it is added to the increase in environmental protection and infrastructure in 2020 Investment, the domestic demand of the pump and valve industry has increased to a certain extent this year. With the stabilization of the domestic epidemic situation, enterprises

Resumption of work and start of construction of the project, we expect that at the end of the second quarter and the beginning of the third quarter the procurement demand for pump and valve equipment is expected to usher in a blowout.

In 2020, we had a "problematic spring". The epidemic situation in China gradually calmed down, but the epidemic situation abroad showed a tendency to spread. It is foreseeable that this year's export of pumps and valves will encounter many difficulties and obstacles, but domestic demand will increase. It is particularly important to grasp the demand in the domestic market, especially the incremental orders for environmental protection and engineering.

The 9th Shanghai International Pump and Valve Exhibition help exhibitors win business opportunities

The 9th Shanghai International Pump and Valve Exhibition (referred to as "Shanghai Pump and Valve Exhibition") is the industry's high-quality pump and valve exhibition, which will be held in Shanghai National Convention and Exhibition Center (Hongqiao) from August 25-27, 2020 The scale of the exhibition is over 70,000 square meters, with more than 1,200 exhibitors gathered, and more than 60,000 professional visitors are expected to visit.