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Therefore, a market structure with vicious competition in low-value-added production links has been formed. Faced with such a strong capital offensive, it is almost a foregone conclusion that domestic dry equipment companies in trouble are being merged and acquired.
The domestic drying equipment companies have been in trouble for the multinational companies that have been entrenching the Chinese drying equipment industry. This has provided opportunities for expansion. Due to the high cost performance of domestic drying equipment, multinational companies have not been able to make breakthroughs in the drying equipment market in China.
At present, when the business cycle of the drying equipment industry is at the bottom, the cost of mergers and acquisitions is even lower, which is more conducive to the acquisition and integration of domestic drying equipment companies by virtue of their capital advantages, and the acquisition of domestic drying equipment companies by multinational companies To prevent other drying equipment companies from challenging their leading position, they also seized the resources of the Chinese drying equipment market.
It can be inferred that multinational companies have absolute advantages in product innovation, quality reliability, and after-sales service. The gradual deployment of their industries will lead to deeper competition in the industry, and market sales will be further concentrated in large-scale drying equipment companies. The stronger the stronger, the weaker the weaker.
In the future, the policy support that domestic drying equipment can obtain will be relatively weak. Domestic drying equipment companies need to rely more on their own strength to compete with multinational companies.
Domestic Drying Equipment Enterprises Should Compete with Multinational Companies by Their Strength
In recent years, the production, sales, and export volume of drying equipment in China have been growing at a relatively rapid rate, but the profitability of production and drying equipment companies is not optimistic. Due to the large number of drying equipment companies and their blind expansion of production capacity, they have failed to gain control.