Why did the dry equipment industry not see "giant"?

Chemicals, petrochemicals, pharmaceuticals, food, and other industries, because some products must be removed during the production process, so chemical drying equipment came into being. Prior to the reform and opening up, drying equipment was mainly imported from Japan, Europe and the United States. In 1980, the first dry equipment manufacturing enterprise of the nature of collective ownership was opened in the Yangtze River Delta region where China's first township chemical company was born. It is said that in the Yangtze River Delta where the economy is relatively developed, after more than 20 years of development, there should be several large-scale enterprises in the field of drying equipment manufacturing. However, according to the reporter’s understanding, although Changzhou City, the most concentrated drying equipment manufacturing company, has a total of more than 300 companies, none of the companies with annual sales revenue exceeding RMB 100 million has only one seniority enterprise in 2002. It has once exceeded the sales revenue of 100 million yuan, and only once before and after. Other better companies sell 50 million to 60 million yuan a year, and the average company is about 20 million yuan. The local private chemical companies that developed during the same period did not have dozens of sales revenues of several billion yuan a year.
Why is the difference so obvious? According to a reporter from the general manager of a drying company who is from a baccalaureate in Changzhou, the dry industry in the Yangtze River Delta is characterized by scattered, unplanned, and too small. The key is that the industry's entry threshold is too low, and 500,000 yuan plus 10 mu of land will be able to build a drying plant. Some registered companies actually did not even have a formal factory site. After negotiating on the basis of relationships and means, they immediately took a grass-and-mortar team, recruited raked metalworkers and welders, and rented factories to start producing dryers. This practice is not uncommon in Changzhou. This phenomenon is called scattered. The so-called chaos refers to the fact that some companies with low technology are able to keep their mouths open. The equipment manufactured in a similar manner is of poor quality but at a low price, it can be sold. Small needless to say. According to his opinion, it is entirely possible that the drying equipment industry in Changzhou will compete to form seven or eight large-scale enterprises.
The Changzhou region has not been able to produce a large-scale drying equipment company for more than 20 years. Is it because the domestic and foreign markets are not so big? Industry insiders dismiss this view. Drying equipment is widely used. Chemicals, petrochemicals, pharmaceuticals, food and other industries do not say that there is a large demand for electronic, military, light industry, agricultural product processing, laboratories and research institutes, but only domestic equipment. The low technological content, the inability to sell a good price line, and the vicious competition among enterprises have largely offset the profits of the industry. A boss reluctantly said that last year steel prices, dry equipment should be properly increased prices, but some small factories from the chaos, you can create 100,000 yuan this dryer, he said 60,000 yuan on the line, get alive, this Should use 3 cm thick steel plate, but he uses 2 cm, the life span of the equipment will certainly not be long, but the user does not understand the technical requirement in this respect.
People in the industry believe that in order to expand the drying equipment enterprises, it is necessary to improve the industry's access threshold, and the establishment of national standards is an important part. It is reported that at present, there is no national standard in the domestic drying equipment manufacturing industry, that is, the industry standard only involves a small number of products. The quality of many products is only the final word of the customer, and the industry calls it the “standard guest”. An independent device manufacturing industry, with no national standard and no industry standards, cannot objectively verify the quality of drying equipment. Furthermore, at present, there is only one national industry association that is not enough. As soon as possible, regional and targeted association organizations should be established, such as establishing the Changzhou Drying Equipment Association, which is conducive to regulating the development of the industry. In the Taiwan region of China, once an industry reaches more than seven companies, it must establish regional industry associations. In Wenzhou, Zhejiang, a lighter association was also established to rapidly develop the industry and formed several large-scale enterprises with international competitiveness. Changzhou's drying equipment companies are so centralized, build an industry association, and regulate the development of enterprises, which is beneficial to the expansion of drying equipment enterprises.

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