(1) Changes in Nature Spur Demand
Recent years’ frequent droughts have brought soaring demand for agricultural water pump. In addition, China’s groundwater level is lowering. According to the research of China Geological Survey, the fresh groundwater for annual exploitation in major plain and basin areas of northern China is 57 billion cubic meters while the real number is 36.63 billion cubic meters. The intensity and rate of groundwater exploitation is quite imbalanced in these plain and basin areas. Plain areas in North China have the highest groundwater exploitation rate reaching 114%, where deep groundwater is in serious overexploitation and the groundwater level is lowering.
(2) Growth in Macro Economy Drives Investment
Industrial pump industry is a relatively typical investment-driven industry, the market demand of which is greatly influenced by national macro policies and the development of agriculture, water conservancy, energy, chemical industry, etc. China’s economy has kept stable rapid growth in recent years. The development of economy and society, rising investment willingness of enterprises and increase in resident disposable income will further spur the demand for pumps such as agricultural water pump and canned motor pump.
(3) Supportive Industrial Policies from the Government
Agricultural water pumps are closely related to agricultural production and irrigation, water for rural construction, farmers’ domestic water and drainage. In recent years, China has annually increased investment in and supports to agricultural production and farmers’ living. China has introduced various industrial supportive and preferential policies to push the development of “agriculture, rural areas and farmers”, which also stimulates the agricultural water pump industry.
(4) Energy Saving and Environmental Protection Lead to Demand Upgrade
As China gradually implements policies on environmental protection and energy saving and emission reduction, some energy-intensive industries with large water consumption such as agriculture, electric power, chemical and energy have soaring demand for new efficient and environment friendly pumps, which promotes greatly the independent innovation in pump industry. China’s supportive policies for sewage treatment industry also accelerate development of the sewage pump industry.
According to CRI, there are over 2,000 pump manufacturers in China by the end of May, 2017. Chinese pump manufacturers can produce 450 series and 5,000 kinds of pumps.