Last updated on April 20, 2014 at 8:04 EDT

Decision Determines Development: The Development Path of China’s Bearing Industry

December 18, 2012

HANGZHOU, China, Dec. 18, 2012 /PRNewswire/ — Bearings are an indispensable part of the equipment manufacturing industry, serving to support rotating shafts or other moving bodies, guiding their motion and bearing the load from the shaft or other shaft parts. SeekPart.com, a subsidiary of Hangzhou Weiku Information Technology Co. Ltd., in its assessment of the development path of China’s bearing industry, has observed that bearings are widely used in the fields of construction machinery, agricultural machinery, transportation, defense, aerospace, household appliances, office machinery and more. Their quality, life span and reliability directly determine the performance of the host machine.

In recent years, China’s rapid economic development has put a huge demand on the equipment manufacturing industry, in which bearings have played an important role. China first proposed to raise the level of basic parts manufacturing in “The Revitalization Plan of the Equipment Manufacturing Industry” in 2009. And in October 2010, the Ministry of Industry and Information Technology (MIIT) released “The Revitalization Plan of the Mechanical Parts Industry”. In this scheme, bearings ranked first of the basic mechanical parts. It also indicated that the future development of the bearing industry will focus on rail transportation, the automotive industry, wind power/hydropower, nuclear power, the aviation industry, construction machinery, metallurgy and machine tools. Obviously, the state is paying more and more attention to the bearing industry, aiming to achieve overall machinery industry chain optimization by enhancing the quality and competitiveness of the basic items.

Many investors have seen potential in the bearing industry, and in recent years, many bearing enterprises sprang up and also achieved outstanding results. In 2010, the main business revenue reached 1.26 billion yuan, ranking third in the world. In 2011, the business revenue of the bearing industry reached $142 billion, with a growth rate of 12.70%. In 2008 and 2009, China’s bearing industry was impacted by the international financial crisis, and production speed decreased slightly. Until today, the uncertainties of the domestic bearing market still exist, but the overall trend within these six years is up. There was a rise in the second half of this year. However, the target is still some distance away. The domestic bearing industry has comes into a tough period since the economic crisis.

However, with the closing of some SMEs, many enterprises have survived during this period. They are always asked how to survive in such an economic environment. Since the trend of the market cannot be changed, we can only change ourselves and find a way out.

All the production technology, marketing methods and market exploring means of the past need to be adjusted. For example, the top bearing manufacturer, SKF owns its own bearing steal smelting and bearing equipment research technology. The high-end market of China’s bearing industry is largely occupied by eight multinational corporations. However, the domestic techniques of high-end bearings are far behind, so it’s very important to optimize bearing production technology. We should not only catch up with domestic counterparts, but also learn from the outstanding bearing manufacturers of the world.

In the highly developed age of information, the traditional sales channels don’t function so well, due to the limitation of human and financial resources. The emergence of e-commerce trading platforms meets the needs of enterprise investors because of their effectiveness. By means of e-commerce network technology and innovative financing services, it simplifies the traditional model and creates an efficient trading service system. Thus, industry circulation costs as well as the problem of financial pressure can be solved, and the link between upstream and downstream industries can be strengthened. As a result, the enterprise’s market response capability and competitiveness would be promoted.

Domestic B2B e-commerce platforms are gradually entering into the field of the manufacturing industry, providing every manufacturer a showcase to the whole world. In this downturn of the bearing industry, using an e-commerce platform like SeekPart.com to show a company’s products can make a difference in the possibility of getting through the industrial depression.

SeekPart.com is a professional vertical website of mechanical parts, whose daily flow is over 30,000, which converts into a considerable amount of inquiries. Unlike other platforms, SeekPart.com treats all customers equally, and customers will benefit if they cooperate well. For large bearing suppliers, the possible product market has been open for a long time, and they can trade easily with old customers. However, there are many potential customer resources around the world. Taking the chance to show products and further utilizing customer assets can bring more business opportunities. Different from the large enterprises, SMEs always lack cooperative customers, so this poses a great chance for them to develop some loyal customers.

At this tough period for the bearing industry, this is also a great chance for SeekPart.com to prove itself and its value. For enterprises, the choice would determine the final result.

SOURCE Hangzhou WeiKu Information Technology Co., Ltd.

Source: PR Newswire