Wenling is the main production base of water pumps in China. It mainly produces small submersible pumps, air pumps (micro air compressors), vacuum pumps and so on. Its domestic market share is about 60%. Its products are exported to more than 30 countries and regions such as Europe, America, Asia and Africa.

Pump and motor industry is the largest pillar industry in Wenling City, and it is one of the more distinctive regional block economies. There are about 3000 enterprises related to pump industry and motor industry chain in Wenling City. The total number of employees is about 120,000, and the annual industrial output value is more than 26 billion yuan. It is the main production base of water pumps in China. It mainly produces small submersible pumps, air pumps (micro air compressors), vacuum pumps and so on. Its domestic market share is about 60%. Its products are exported to more than 30 countries and regions, such as Europe, America, Asia and Africa. It has formed a characteristic industrial community with high degree of agglomeration, and has good regional advantages, good reputation and regional brand image. 。 It has formed a good situation of specialization of division of labor, scale of production, scientific management and network of marketing, and the quality and technical level are also in the leading position in the domestic industry. At present, the city's water pump industry has four well-known trademarks in China, 12 famous brand products in Zhejiang Province and 24 famous brand products in Taizhou City. There are 28 certified high-tech R&D enterprises, including one national enterprise technology center, one national demonstration productivity promotion center, one postdoctoral workstation, six provincial enterprise technology centers, four production-university-research cooperation entities and one national laboratory. The industry has won the honors of "National Water Pump Industry Famous Brand Building Demonstration Zone", "Provincial Modern Industrial Cluster Transformation and Upgrading Demonstration Zone", "Zhejiang Regional Famous Brand" and so on.

I. Basic Situation of Industry Operation

(1) Economic indicators go up against the trend. In 2015, the output value of enterprises in pump and motor industry reached 17.64 billion yuan, an increase of 8.2% year on year, accounting for 23.8% of the city's total industrial value; sales of 16.08 billion yuan, an increase of 54% year on year; profits of 1.05 billion yuan, an increase of 0.1% year on year; export delivery value of 7.31 billion yuan, an increase of 82% year on year, tax of 568 million yuan, an increase of 37% year on year.

(2) The proportion of enterprises of scale has increased. There are 234 pump and motor enterprises above the scale in the whole city (an increase of 18 compared with last year), accounting for 24.3% of the total number of enterprises of scale. Among the 100 key industrial enterprises in the city, 32 are pumping enterprises, of which 6 are Leo shares, New Territories pumping industry, Dongyin pumping industry, Dayuan pumping industry, Gling industry and Guanglu mechanical and electrical enterprises rank among the top 20. Pumping enterprises play an important role in the development of large-scale industrial economy. Leo shares and New Territories Pump Industry have listed on the stock exchange, and Dongyin Pump has passed the examination and queuing listing.

(3) Brand effect is gradually highlighted. Four enterprises in the industry have won well-known trademarks in China, 12 provincial famous brand products, 15 provincial famous trademarks and 24 municipal famous brand products. The popularity of the National Exhibition of Pumps and Electrical Machinery in Wenling City has increased year by year. The 9th Pumps and Electrical Machinery Exhibition held from February 25 to 27, 2015 has reached an all-time high with 490 exhibitors and an increase of 50 exhibition places to 1100, including more than 120 special-fitting enterprises with an exhibition area of more than 30,000 square meters, and leading international product enterprises from Japan, Korea and Germany. In addition, more than 70 foreign businessmen from more than a dozen countries, such as Russia, Ukraine and Jordan, were invited to attend and discuss the exhibition. It attracted purchasers from 20 countries and regions, with a total audience of 423,000. During the exhibition, an intentional contract of 771 million yuan was reached and on-site turnover of 321 million yuan was reached. Through the implementation of brand strategy, the market share of pumps and motor products in Wenling City has reached more than 60%, and products are exported to more than 180 countries and regions, such as the United States, Germany, the Middle East, etc. The influence of "Wenling Water Pump" regional famous brand has gradually expanded.

(4) The ability to innovate has been continuously improved. The growing R&D team provides strong support for product development, technological innovation, transformation and upgrading of pump industry. Twenty-eight leading enterprises have been certified as high-tech R&D enterprises, including one national enterprise technology center, one national demonstration productivity promotion center, one post-doctoral workstation, six provincial enterprise technology centers, four production-university-research cooperation entities and one national laboratory.

II. Main Problems

(1) The foreign trade environment is becoming more and more complex. Due to the weak economic situation of the main target exporting countries and the frequent fluctuation of exchange rates, the export value and profits of small export enterprises with long-term settlement and lack of hedging experience are greatly affected by risk aversion.

(2) Rigid cost growth of enterprises. The rapid growth of production and operation costs, financial costs and labor costs has become a bottleneck restricting the development of enterprises. The continuous rise of workers'wages and the improvement of welfare benefits such as old-age insurance have become one of the important factors for the growth of enterprise operating costs in recent years. In the first half of 2015, the cost of fire protection, environmental protection, factory building and warehouse leasing, logistics and other aspects has also increased due to the great improvement of the city's potential safety hazards and "three changes and one dismantlement". Affected by weak external demand and insufficient domestic demand, the overall prosperity in the first half of the year was low and the growth rate was slow. The profitability of most small businesses has declined, and some have been diverted or closed.

(3) The contradiction of land supply remains prominent. On the one hand, the limited land resources are increasingly scarce, the relevant policies are more stringent, and the corresponding procedures for examination and approval are complex, on the other hand, the cost of supporting land is also increasing. In the absence of further development of land, the expansion of the original plant is restricted by planning, construction, fire protection and other aspects, which makes some enterprises with growth potential unable to do anything. Therefore, when enterprises are attracted by preferential policies of foreign investment, such as low-cost land, low tax and other preferential conditions, they are very easy to move out.

(4) The quality of products needs to be improved. Although the majority of pump manufacturers have strong quality awareness, some enterprises are suboptimal in the use of raw materials due to the disorderly competition of many "low, small and scattered" enterprises, resulting in a decline in product quality and credibility. There are also some more standardized enterprises that relax the requirements of parts processing accuracy and affect the quality of finished products when the supply of products exceeds the demand. According to the qualified rate of supervision and spot check of pump products by the Municipal Quality Supervision Bureau, the overall qualified rate of small submersible pumps, sewage submersible pumps and micro pumps in Wenling City is 92.63%, and there is room for further improvement.

(5) The proportion of high-end products needs to be increased. In the pumping industry of Wenling City, the proportion of traditional manufacturing industries such as agricultural pumps and household pumps is relatively high. Most enterprises are still in the middle and low end of the industrial chain and value chain. Most of the processed products with labor-intensive and high consumption of raw materials are more, and the large-scale equipment with technology-intensive is less.

3. Countermeasure Measures

(1) Strengthen the integration of the two cultures. We will carry out in-depth demonstration and promotion of the deep integration of "two modernizations" of enterprises, the enhancement of the integration ability of small and medium-sized enterprises, the innovation of e-commerce and industrial integration, the improvement of the level of intelligence in key areas, the cultivation of intelligent manufacturing production mode, and the support of the integration service capability of "two modernizations", and strive to achieve wide coverage and full penetration of the integration of "two modernizations".

(2) Building a public service platform. First, on the basis of the existing provincial pump testing centers, a national pump testing center will be built to upgrade the quality of Wenling pump products. Secondly, relying on the "China Pump City Network" set up by Pioneer Motor Technology Research Institute, it provides a good network platform and information and technology support for Wenling Pump and Motor Industry Cluster.

(3) Vigorously implement regional famous brands. We will intensify the establishment and promotion of regional famous brands of "Wenling Pump" in Zhejiang Province. On the basis of 34 original enterprises, 39 regional famous brand promotion enterprises of "Wenling Pump" will be established in the next year, focusing on tamping and upgrading the enterprise management system and product quality. At the same time, we should give full play to the effect of "National Well-known Brands of Pumps Create Demonstration Zone", and expand the popularity and reputation of Wenling Pumps.

(4) Speeding up the construction of foundry parks. Focus on guiding low-volume foundry enterprises to eliminate backwardness, integrate and upgrade, move out and develop, helping to start the construction of 50 mu modern science and technology foundry parks in Zeguo and Daxi Phase I, strengthening industrial agglomeration, introducing a number of modern foundry enterprises with advanced technology and equipment, guiding the foundry industry from extensive pollution to energy-saving and environmental protection, and building high-tech precision foundry industry base. Set up a model of transformation and upgrading. Pump enterprises with high technology content should be encouraged to gather in the pumping industry park of the eastern new area to promote the rapid and orderly development of the pumping industry in Wenling City.

(5) Strengthen the strategy of strengthening talents. Relying on relevant national and local talent projects and plans, we will vigorously implement the strategy of strengthening the industry by talents, and strengthen the construction of three teams of senior managers, technical researchers and technicians of pumping banks. We will focus on introducing senior managerial personnel and high-level experts who have mastered key technologies at home and abroad, and attach importance to introducing excellent teams who have mastered high-tech industrialization and a set of technologies. Enterprises, intermediaries, relevant institutions and other social forces are encouraged to run schools jointly, carry out orientation and job training, and train a large number of advanced and middle-level technicians, such as CNC and programmable control equipment operators, precision instrument operators and equipment maintenance workers, in order to meet the needs of the rapid development of the water pump industry in Wenling City.