According to statistics, the national luggage making machinery industry continued to maintain a steady and rapid growth from January to April this year. Data show that the main economic indicators of the industry have been completed well. The total industrial output value (constant price) of the industry was 29.485 billion yuan, a year-on-year increase of 35.64%, of which the output value of new products was 4.907 billion yuan, a year-on-year increase of 51.77%. Industry product sales revenue was 28.631 billion yuan, a year-on-year increase of 42.28%. The total profit of the heavy machinery industry was 707 million yuan, a year-on-year increase of 100.75%. In terms of relatively fast-growing profits, the heavy machinery company suffered a loss of 31.48%, a year-on-year decrease of 140 million percentage points, and a loss of 521 million yuan, a reduction of 5.7% year-on-year. From the perspective of industry operation, the existing problems in the industry are very prominent. The first is the unbalanced economic operation of different manufacturing industries in the industry. From January to April, the lifting and transportation machinery manufacturing enterprises accounted for 55% of the total number of enterprises in the industry, but their profits accounted for 112%, while the total profits of metallurgical equipment and mining equipment manufacturing accounted for respectively -10.0% and 0.44%. Secondly, there are a small number of companies with good economic benefits in the industry, and most companies have unsatisfactory economic benefits. From January to April this year, there were 19 enterprises with a total profit of more than 10 million yuan, accounting for 1.55% of the total number of enterprises in the industry, and a total profit of more than 111.15%. The three companies have developed well, with total profits accounting for 88.1% of the industry. Third, the export value of major products has increased substantially, but the total import volume is much larger than the total export volume. The heavy machinery industry trade deficit from January to April was US$550 million. In addition, the industry’s production and operation has developed rapidly, but the phenomenon of loan defaults is serious, debt is high, interest expenses are large, the cost of sales of enterprises continues to increase, the shortage of liquidity is severe, and the impact of rising raw material prices makes it difficult for enterprises to survive. The heavy machinery industry has excess production capacity, and the pattern of oversupply remains unchanged, but products and parts with high technical content and good performance still need to be imported. Each year, about 22 billion yuan of the market is occupied by foreign manufacturers, which is equivalent to industry product sales revenue Of 28%. The current market demand for smelting equipment and rolling equipment is strong. The main reason for this is that apart from the country’s proactive fiscal policy to promote the rapid growth and technological transformation of the steel industry, private steel companies have developed rapidly. According to preliminary statistics, by the end of 2004, there will be about 20 million tons of steel output from Private Enterprise. Private enterprises have rapidly increased their demand for special steel converters, electric furnaces and continuous casting equipment and various metal rolling equipment, and these enterprises basically use domestic equipment. Once the national fiscal policy changes, potential problems in the heavy machinery industry will become more prominent. At present, the contradictions restricting the production and operation of the heavy machinery industry, especially the large state-owned enterprises, are also very prominent. State-owned enterprises in the heavy machinery industry, especially large state-owned enterprises, have left too much burden in their history. At present, the reform, reorganization, and restructuring of enterprises have not really been in place, and modern management of enterprises cannot keep up. Due to the overcapacity of the enterprise, the low-price vicious competition of general machinery products is serious, resulting in the continuous downturn of product prices, the unsatisfactory economic benefits of the enterprise, and the lack of stamina for development. The shortage of scientific research and development funds and the serious loss of talents have prevented enterprises from improving their innovation capabilities. In addition, the influx of foreign-funded enterprises and the import of luggage production equipment enjoy preferential treatment of tax reduction and exemption, while domestic enterprises cannot receive equal treatment in competition, and other policy issues have also affected the development of the heavy machinery industry.