Insight into the World: The Rapid Growth of the Instrument Manufacturing Industry – A World of Extreme Contrasts”

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　In the first three quarters of 2019, the national industrial economy as a whole showed a stable trend of operation. Industrial production grew steadily, structural adjustments continued to advance, new drivers of growth gained momentum, and the profitability of enterprises improved structurally. Industrial production kept rising, with overall stable operations. From January to September, the added value of industrial enterprises above a specified size across the country increased by 5.6% on a year-on-year basis, maintaining the same growth rate as from January to August. Industrial production showed a significant rebound in September, with the added value increasing by 5.8% on a year-on-year basis, the growth rate accelerating by 1.4 percentage points compared to the previous month. Most industries continue to grow. From January to September, the added value of 38 out of 41 major industrial sectors increased on a year-on-year basis. Among them, the chemical fiber manufacturing industry, the railway, shipbuilding, aerospace and other transportation equipment manufacturing industry, the instrumentation manufacturing industry, the ferrous metal smelting and rolling processing industry, and the electrical machinery and equipment manufacturing industry all achieved double-digit growth, with growth rates of 12.3%, 10.5%, 10.4%, 10.1%, and 10.0% respectively. Industrial structure adjustment continues to advance, with new drivers of growth growing stronger. The equipment manufacturing industry and high-tech manufacturing industry are growing rapidly. From January to September, the added value of the equipment manufacturing sector and the high-tech manufacturing sector increased by 6.0% and 8.7% on a year-on-year basis, respectively. These growth rates were 0.4 and 3.1 percentage points higher than those of all industries above a certain scale, and they were 0.2 and 0.3 percentage points faster than in the period from January to August. From a macroeconomic perspective, for a long time, a large number of manufacturing enterprises have been the driving force behind China’s economy; however, blind expansion has led to overcapacity. Relevant experts believe that the main problem in China’s manufacturing sector is an \"extensive mode of growth, relying on increased input of factors to boost output rather than on improving quality and efficiency.\" Therefore, our country has introduced measures such as reducing overcapacity, deleveraging, and cutting inventory, but these undoubtedly represent a fatal blow to small and medium-sized instrument manufacturing enterprises. Given that the development of instrument and meter manufacturing enterprises in our country is characterized by a large number of small and medium-sized enterprises, an abundance of low-quality products and homogeneous products, few enterprises with strong overall capabilities, as well as a lack of products with high added value or differentiated features, the resulting decline in output is highly detrimental to the development of these enterprises. At the same time, funding issues are also a major problem faced by the instrumentation manufacturing industry. On the one hand, faced with the problem of severe homogenization, instrumentation companies can stand out in the market only by achieving technological innovation and introducing new products; however, this requires substantial financial support, with high investment costs and slow returns. On the other hand, during their development, manufacturing enterprises also have to bear various local taxes and fees (urban construction tax, education surcharge, stamp duty, property tax, land use tax), as well as sales expenses, logistics costs, administrative expenses, and bank interest, which further reduces the profit margins of these enterprises. It has been pointed out that improving efficiency, undergoing transformation and upgrading, and achieving a shift from being \"large\" to being \"strong\" are the only ways for China’s manufacturing sector to enhance its competitiveness. The basic paths for the transformation and upgrading of China’s manufacturing industry include: intelligence, refinement, sustainability, and service orientation. With the development of automation technology, it is highly likely that the manufacturing industry will develop a trend toward smaller and more sophisticated products. Eliminating low-end production capacity is an inevitable \"painful process\" for China’s manufacturing sector. Huaheng Instruments has developed its core technologies from scratch, continuously improving the accuracy of industrial automation instruments. The performance standards of these instruments meet international levels, and product iterations are carried out to fulfill customers’ needs for customized solutions. At the same time, **a reduction in VAT for the manufacturing sector will bring significant benefits to the development of the instrumentation manufacturing industry. Firstly, it helps instrument and meter manufacturing companies reduce their tax burdens and increase their profits, thereby providing financial support for these companies to increase investment in research and development and expand their production capacity ； Secondly, it helps to promote the development of industries involved in the upstream and downstream sectors of instrumentation, including integrated circuits, steel, robotics, and others, thereby providing impetus for the growth of the instrumentation manufacturing industry. \"It is only after the tide goes out that one can see who is swimming naked; it is only after a major reshuffle that the true value of companies becomes apparent, and those that survive are the ones who triumph.\" Leveraging its core technologies in sensors and smart circuit boards, Huaheng Transmitter Manufacturer is able to adapt these core technologies at low cost to meet customer requirements, thereby enabling the customization of personalized products. The main products include the SMART series of pressure transmitters, multi-parameter transmitters, flow meters, temperature sensors, and level sensors. As a manufacturer of level transmitters, the company provides industrial automatic transmitters with an excellent cost-performance ratio for industries such as electricity, petroleum, chemicals, metallurgy, cement, and mining in China. http://www.xahuaheng.cn/uploadfile/20191022_070842339.jpg Huaheng Instruments will continue to uphold the \"craftsman spirit\" of focusing on doing one thing well throughout its existence. By combining production with research and development, its R&D team conducts countless tests on these instruments in various environments, thereby continuously improving their technology and product performance. The goal is to turn industrial automation instruments into economical and durable products that contribute to the development of China’s industry, helping the company to become a leader in the domestic instrumentation sector.