The product manufacturing method urgently needs to be upgraded.
Release time:
2021-08-30
In recent years, China’s wind turbine industry has gradually grown into a sizable sector, with the total domestic market expanding rapidly. As a result, many strong foreign manufacturers have begun to pay attention to the Chinese market.
Abstract: In recent years, China’s wind turbine industry has gradually grown into a sizable sector, with the domestic market experiencing rapid overall expansion. Many powerful foreign manufacturers have begun to pay close attention to the Chinese market, and an industry-wide battle centered on securing the domestic market has now kicked off. Compared with our international competitors, we face five critical challenges that warrant our urgent attention.
With changes in the broader economic environment, businesses are facing increasing cost pressures.
This year, the impact of the slowing national economic growth on the wind turbine industry will gradually become more apparent, and enterprises will inevitably face increased cost pressures in their operations. Rising labor costs, an appreciation of the RMB exchange rate, domestic inflation, and a tightening of monetary policy all exacerbate this issue.
There is overcapacity in low-end products, and homogenization is severe.
An imbalanced industrial structure. Although China’s wind turbine products cover more than 200 series and over 2,000 varieties, the product range is extensive yet lacks depth and specialization; overlapping layouts and redundant investments are widespread. Mutual pressure among raw materials, technology, capital, and sales further exacerbates the trend toward product homogenization. The lack of distinct product features and prominent competitive advantages has prompted wind turbine enterprises to adopt a self-expansion development model, thereby intensifying the polarization within China’s wind turbine industry.
Basic technological research is insufficient, and common technologies are lagging behind.
To narrow the gap with leading wind turbine manufacturing countries, we must achieve breakthroughs in the R&D and manufacturing of critical technologies and key components. However, the industry currently faces a predicament characterized by a shortage of research into common technologies, with many such technologies merely relying on past achievements without further innovation. A major contributing factor is the lack of an innovative system and organizational structure dedicated to researching common, critical, and core technologies.
Developed countries have already placed the R&D of common technologies at a prominent position in industrial development, whereas China has consistently lagged behind in the R&D of such common technologies. Going forward, we should pool the strengths and resources of the entire industry, optimize resource allocation, and, with the support of relevant national authorities, accelerate the development of common technologies and the establishment of an innovation system, thereby achieving genuine breakthroughs in key, critical technologies across the industry.
The product manufacturing method urgently needs to be upgraded.
Currently, the biggest shortcoming of China's wind turbine products is their poor reliability. This poor reliability leads to a host of negative consequences: first, user dissatisfaction; second, a decline in the profitability of enterprises. After-sales service costs have become a significant expense for wind-turbine companies, and the low reliability of products keeps these service costs persistently high. If the issue of poor reliability in domestically produced wind turbines is not properly addressed, China’s wind-turbine products will remain stuck with the label of “low-end, cheap products,” forcing domestic enterprises to compete solely in the low-end market—a vicious cycle that perpetuates itself.
Improper industry competition is beginning to emerge.
Unfair intra-industry competition. Under the trend of economic efficiency, certain wind turbine manufacturers that have lagged behind in development—lacking any significant advantages in either industrial technology or product performance—have shifted from conventional competition based on “quality” and “quantity” to a vicious price war centered on lowering product prices as their “competitive edge.” To seize market share, some companies have even resorted to operating at “negative profitability,” aggressively expanding their market presence. While severely disrupting market order, this practice has also forced legitimate manufacturers to lower their own wind turbine sales prices.
Optimizing and enhancing product reliability involves numerous aspects, with the first priority being the improvement of equipment manufacturing capabilities. As the saying goes, "To do a good job, one must first sharpen one's tools." It can be said that whoever possesses sophisticated manufacturing capabilities will gain a competitive edge in the market. Leveraging technological advancement is key to boosting a company’s competitiveness. Technological innovation, as the core value upon which a company relies to establish itself in the market, directly reflects the company’s development level and market competitiveness. Through proactive technological innovation, companies can continuously elevate product quality and accelerate product upgrades and replacements. Moreover, a unified and well-established market regulatory mechanism—essential for the orderly development of China’s wind turbine industry—is precisely the most pressing issue that this sector needs to address at present.
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