We can find from the news: domestic manufacturing overcapacity, the sharp decline in orders, price diving,. For the manufacturing industry, 2010 is the gray year, 2011 is the black year, 2012 will be the year of blood, the real plight of the manufacturing industry has begun. Iron and steel industry is no exception, is being staged on the end of". Originally the iron and steel industry is in the digestion of excess capacity and inventory, coupled with the 2011 unsatisfactory macroeconomic, iron and steel industry as a whole a rapid decline in the situation, and as emerging industry of photovoltaic industry also failed to escape. 2011 PV products appear serious imbalance between supply and demand, product prices fell sharply, while foreign polysilicon companies to China's large dumping of low-priced polysilicon products, resulting in a loss of the entire industry. At present, 80% of the polysilicon production enterprises have been discontinued.
         Plane grinding equipment industry as the upstream industry, and these industries have a close contact, the lower reaches of the industry downturn will directly affect the development of flat grinding equipment industry.
        In our flat grinding equipment industry, the transformation and upgrading of course is a beautiful vision, but there are many constraints in reality. In automation, an automated machine at every turn is a few million, the enterprise has the ability to buy advanced equipment, of course, to update the production process. But some companies do not have sufficient funds to carry out the chain, if you want to complete the reform of automation, most companies will choose a bank loan. And the restrictive conditions of bank loans not only, and difficult to apply, even down the application, high interest rates also let many enterprises do not eat, so that not only failed to reducing the burden to the enterprise but increased the burden on enterprises. Then there is a number of enterprises to reflect, foreign imports of automation equipment and domestic raw materials are not compatible, which is also temporarily unable to overcome the problem.
         The economic situation in 2013 is the most complex, the most severe and the most difficult one since the financial crisis in 2008. The global economy is in great turmoil, big adjustment and big changes. The downside of the world economy, especially the economy of developed countries, is the impact of developing countries such as China. The reduction in demand in developed countries will have a direct impact on the export of developing countries, and the low interest rate policy implemented by the developed countries will also give the developing countries the risk of inflation. The deterioration of the economic environment, the impact on the domestic industries is self-evident.
         In addition, in the development of the industry for a long time, there are some bad phenomena, such as the phenomenon of product homogeneity is serious, the price war between the goods, the fake and inferior products are often the negative energy of the healthy development of the industry.
         In the economic boom, any enterprise is not willing to adjust the structure. However, with the continuous increase in the cost of labor and the price of raw materials, the profits of the enterprises have been compressed, and the production has been eliminated. For now, China's manufacturing industry has entered a high cost era, some industry overcapacity, a considerable part of the technology research and development capabilities are weak, the production of large and not strong, at the same time, the production process is now more common problems. These problems have seriously restricted the survival and development of China's manufacturing industry.
         Therefore, the transformation and upgrading of China's manufacturing industry is imminent. Implementation of the enterprise, we need to develop a suitable development strategy and implementation plan for each enterprise according to their own different situation, to gradually realize the industrial upgrading.