According to statistics, this year 1-4 month national heavy machinery industry maintained steady and rapid growth. Data show that the industry of major economic indicators in good condition. Industrial output value (constant prices) was 29.485 billion yuan, an increase of 35.64%, of which 4.907 billion yuan output value of new products, an increase of 51.77%. Industry sales revenue of 28.631 billion yuan, an increase of 42.28%. Heavy machinery industry total profit of 707 million yuan, an increase of 100.75%. Relatively rapid growth of the line in terms of profits, loss-making enterprises of heavy machinery 31.48%, down 140 million percent, losses of 521 million yuan, up 5.7 percent reduction in losses. Operational situation from the industry sector in question is very prominent memory. The first is the imbalance in the economic performance of different manufacturing industries, 1-4 months of lifting the transport machinery manufacturing enterprises 55% of the total enterprises total industry profits accounted for 112%, while the metallurgical equipment and mining equipment manufacturing accounted for a total profit -10.0% and 0.44%,. Good economic returns in the second sector enterprises are a minority, the majority of economic efficiency of enterprises is not ideal. January to April this year, more than 10 million yuan in total profits of the enterprise has 19, accounting for 1.55% of the total industry enterprises, total profit accounted for more than 111.15%. Three good corporate development, accounting for 88.1% of total industry profits. Again, the main product exports have grown substantially, but the total amount of imports is much larger than the total exports. 1-4 month trade deficit for the heavy machinery industry $ 550 million. In addition, production and management industry developed rapidly, but serious delinquent loans, debt and more interest large enterprises increased cost of sales, a severe shortage of liquidity, coupled with the impact of raw material prices, business survival difficult. Heavy machinery industry has excess capacity, oversupply pattern has not changed, but the high technology content, good performance products and parts and still has to import, each year about 22 billion yuan in the offshore market vendors occupied, equivalent to industry sales revenue of 28%. Currently metallurgical plant and rolling mill equipment market demand, mainly due to the proactive fiscal policy to promote the country in addition to the steel industry rapid growth and technological upgrading, the rapid development of private enterprises, the preliminary statistics to the end of 2004, will be about 20 million tons of steel production comes from private enterprises. Private enterprise demand for steel converter, electric furnace and continuous casting equipment and all kinds of metal rolling equipment rapid growth, and these companies basically using domestic equipment. Once the national fiscal policy change, the potential problem of heavy machinery industry will be more prominent. Currently restricting heavy machinery industry, especially large state-owned enterprise production and management conflict is also very prominent. Heavy machinery industry enterprises, especially state-owned large-scale state enterprises historical burden is too great, the current enterprise reform, reorganization and restructuring is not really in place, poor management of modern enterprises. Due to the excess production capacity of enterprises, so that the general machinery products severe throat price competition, resulting in product prices continued to slump, unsatisfactory economic efficiency of enterprises, lack of stamina development. Shortage of research and development funding and a serious brain drain, so that enterprises innovation capacity can not be effectively improved.