As is well known, the sealing industry can be regarded as one of the smallest industries in China, yet its products are used to support major industries. Whether in aviation, marine transportation, petroleum, chemicals, machinery, power generation, metallurgy, or mining, sealing products are indispensable. In short, wherever there are equipment, pumps, pipes, and valves, sealing products are relied upon. Therefore, although the industry is small, it involves a very broad range of sectors.

 

In recent years, with economic development, the sealing industry has also developed rapidly. However, unlike other industries, although the sealing industry has developed quickly, sealing enterprises have changed relatively slowly. For example, in the late 1970s and early 1980s, there were only a few manufacturers in Jiangsu, Zhejiang, and Shandong. Today, sealing product factories can be found everywhere, whether in coastal or inland areas, or in the north or south. The entire sealing industry has grown from just a few companies to more than 300, which can be considered a very rapid pace of development. However, at the level of individual enterprises, many companies have not changed significantly, and their production scale has stagnated or even declined. Their technical capabilities have not increased substantially, and in some cases have even weakened. Many manufacturers still hold on to the “four old elements”: old products, old technologies, old equipment, and old production scales. Of course, some enterprises have strong capabilities in imitating and reproducing certain products, but there are few enterprises in the entire industry with the ability to independently develop new products.

 

 

 

In terms of products, the vast majority of manufacturers still produce traditional products such as spiral-wound gaskets, packing rings, gland packing, and high-strength gaskets. Products with some degree of innovation, such as PTFE products, lag far behind foreign products in terms of technology and quality, including PTFE packing and expanded PTFE tape. Looking around the industry, there are very few new products.

 

In terms of technical capabilities, technical personnel account for a relatively small proportion of the workforce in most enterprises. Many companies lack professionally trained technical personnel, resulting in weak technical capabilities and a corresponding lack of product development and improvement capabilities. Since the establishment of the European Union, the strength brought by its integration has prompted the EU to improve and establish new European sealing quality standards, replacing the series of standards previously based on those formulated by the United States Fluid Sealing Association. Leakage rates have been introduced and emphasized in the new European sealing quality standards. The leakage rate of Chinese products is generally at the 10-1mg/s level, whereas Europe has already developed high-strength graphite composite sheets with leakage rates reaching the 10-4mg/s level!

 

In terms of equipment, the vast majority of enterprises possess only a few outdated braiding machines, several basic homemade winding machines, simple punching and notching machines, and shearing machines. They rely on the capabilities of experienced workers to organize production, while the equipment of many factories remains underutilized for extended periods.

 

In terms of quality management, the vast majority of enterprises rely on operators’ proficiency to produce quality products. They do not manufacture according to standardized process requirements and lack the necessary management tools. Although a considerable number of manufacturers have obtained ISO9000 series certification, their internally established process documents, quality control plans, work instruction documents, and equipment management documents are often superficial and ineffective, remaining far behind international standards.

 

In terms of scale, the sales revenue of the vast majority of enterprises is below RMB 5 million. There are relatively few companies with sales of RMB 10 million, and only a handful exceed RMB 10 million. Frankly speaking, a large proportion of the sales revenue of many manufacturers comes from outsourced and procured components, while the proportion actually produced in-house is not high. As a result, many small enterprises find it difficult to compete with well-known foreign companies and manufacturers.

 

 

 

 

In summary, the competitiveness of China's sealing industry is relatively weak, but this mainly refers to certain small enterprises. China also has some companies and factories with strong capabilities. Although there are several well-known large enterprises abroad, there are also many small enterprises, as well as numerous commercial companies specializing in sealing products that purchase products from China for sale in their own or other countries. Therefore, among international industry peers as a whole, each side has its own strengths and weaknesses.

 

In terms of advantages, we have advantages in three main areas:

 

 

Whether asbestos, graphite, or other non-metallic materials, China is a major producer, while many countries lack these resources.

 

 

At present, sealing products remain labor-intensive products, and China's manufacturing costs are low. Currently, winning competition in sealing products depends on price factors to an extent of 60%. In the domestic market, the use of sealing products for OEM applications is already widespread, and this is even more evident in the international market. As domestic reform continues to deepen and improve, price factors are playing an increasingly significant role in the maintenance market.

 

 

At present, marketing in China's domestic sealing product market still relies primarily on interpersonal relationships. With favorable timing and strong interpersonal connections, we have many advantages in the domestic market when product quality is equivalent. From the perspective of market competition, these three advantages provide a basis for entering the competitive arena. Conversely, the disadvantages may be even greater.

 

The most prominent disadvantage is technological backwardness. On the one hand, in order to meet the increasingly stringent requirements for environmental protection, Chinese enterprises have begun to attach importance to the ISO14000 standards, and requirements for sealing products are becoming increasingly strict. Just as the entry of a large number of joint ventures has brought new quality requirements and new environmental concepts, new standards have objectively led to a redistribution of the market. New and more stringent quality standards will become the biggest obstacle to the export of China's sealing products, while also becoming a powerful tool for foreign enterprises entering the Chinese market. Enterprises that do not attach importance to technological progress will be eliminated within the next five years.

 

People are the core of technology. In terms of the current situation, the sealing industry is relatively fragmented, and individual enterprises are small in scale, resulting in limited access to highly capable personnel. The overall quality of enterprise employees is relatively low.

 

In addition, business philosophies may need to be corrected. Capitalist countries have existed for more than 200 years, and many of our international peers, namely competitors, have already experienced four generations of continuity. They have long moved beyond the desire to become wealthy after escaping poverty and have developed mature approaches to markets, management, brands, and corporate culture. The reason so many enterprises have been repeatedly established in China at this stage is largely that many people are eager to become wealthy by taking advantage of various irregularities during the reform process. This is a natural process of transition, and capitalist countries have experienced the same process. However, the issue before us is how to accelerate this evolution, moving from entrepreneurship driven by the desire to become wealthy toward a mature business culture.

 

On this basis, a careful analysis makes it easy to identify the various shortcomings in the behavior of individual enterprises. Insufficient cooperation and excessive competition have resulted in a declining market, which is the primary problem in business operations. In reality, blindly lowering prices and pursuing orders will ultimately destroy the market. The market is not a cake; it is a field. It requires investment, cultivation, and care in order to produce results and achieve long-term development.

 

As for quality awareness, after-sales service, product packaging, and investment in equipment, each enterprise can naturally conduct its own evaluation with reference to the ISO9000 standards. Although there is a saying that management accounts for “70% management and 30% technology,” management problems are relatively easy to improve as long as there is confidence.