How to Face Opportunities and Challenges in the Foundry Industry in 2020

Under the "COVID-19" epidemic, many foundry enterprises are facing different levels of survival pressure. Enterprises are difficult to operate and talents are difficult to find. The entire casting industry is facing large-scale changes and reshuffles. Faced with opportunities and challenges, how to "turn danger into opportunity" in the casting industry has become the focus of thinking and attention for many casting practitioners.
Accelerate the elimination of outdated production capacity
There are still over 26000 casting enterprises, with an average scale far lower than that of industrialized countries. The development of enterprises is also severely unbalanced. More than 10000 casting enterprises are still adopting outdated production processes and equipment, with technical and economic indicators such as pollutant emissions, energy consumption, and material consumption far exceeding the industry average. The backward production capacity has seriously affected the healthy development of the industry. At the same time, most fields have severe overcapacity, and the operating rate of automatic molding lines in the industry is less than 60%. The existence of a large number of outdated production capacity has further exacerbated the disorderly competition in the market.
To fundamentally change the situation of China's casting industry being large but not strong, the first step is to promote industrial policy guidance and market competition mechanisms for casting industry access, strengthen constraints on energy consumption, environmental protection, and other aspects, increase efforts to eliminate backward production capacity and resolve excess production capacity, reduce the number of casting enterprises in China, form an enterprise structure that is suitable for market demand, and vigorously promote the optimization and adjustment of industrial structure.