Chinese Pneumatic mkt should automate: R&M

DUBLIN: A new report by Research and Markets says that while the Chinese pneumatic components market made huge strides from 2004 to 2007, registering an annual growth rate of over 30 per cent, the worsening macro-economic situation has slowed market progression.

Despite this, the market is expected to grow, receiving strong elbow grease from the food, electronics, and industrial machinery sectors. The high degree of automation in end user industries has translated into greater demand for pneumatic components. "Pneumatic components are the preferred tools because they are non-polluting and energy saving compared with electric and hydraulic components," notes the analyst of this research service. "As popular automation components, pneumatic components are expected to expand the scope of application." With strong support from national policies, Chinese entrepreneurs are stepping up the tempo of research and development activities to enhance product quality.

The manufacturing sector in China has witnessed rapid development registering a double digit growth rate during the past few years. Chinese manufacturers have adopted process automation as the best route to ensure production quality and improve productivity, enabling further reduction of operating costs and raising the profit of manufacturers.

Automation has also assumed greater significance in another context. In the past, low labor costs were a major advantage for the manufacturing industry in China. The introduction of the new labor law and Renminbi appreciation has reduced that advantage drastically, seriously impacting some labor-intensive industries such as textile and wood working. To remain competitive and reduce manufacturing costs, manufacturers are increasingly opting for automation equipment, including pneumatic components.