The LTF40C-2 model from Fuzhou Launtop M&E has a 110m pump lift and a 3.6L fuel tank capacity. Price is $130.

Output and exports remain strong despite rising material costs, the tax rebate cut and the labor law revamp.

The gasoline-powered water pumps industry in China continues to grow at a steady pace despite many challenges.

Among these is the increasing raw material costs. In 2007, the cost of aluminum and steel, which are used predominantly in production, soared 50 and 30 percent, respectively. This placed great pressure on suppliers to keep prices competitive, as materials account for nearly three-fourths of total outlay.

Companies are also dealing with the implementation of new government policies such as the export tax rebate cut, which was done primarily to curb the burgeoning trade gap. The rebate for gasoline-powered water pump shipments was reduced from 17 to 13 percent, aggravating makers' pricing dilemma.

The new labor contract law, which went into effect January 2008, is another cause for concern. It requires manufacturers to set wage standards for workers on probation and overtime, pay premiums for retirement, medical care and unemployment insurance, and reserve funds for housing.

The law also grants employees with more than 10 years of service at a company the right to sign a contract that protects them from dismissal without cause.

Since its enactment, gasoline-powered water pump suppliers have provided salary increases of 10 percent for engineers and regular workers, and 20 percent for personnel with a five-year tenure. This provision alone has raised production costs by more than 5 percent, forcing some makers to augment prices accordingly.

Even with all these hurdles, companies are optimistic. The majority expects solid growth in the next 12 months, some as much as 30 percent. This upbeat outlook is encouraged by strong demand from both the overseas and domestic markets.

Exports of water pumps in 2007 reached $1.14 billion, up 14 percent from the previous year. North America, Asia and the EU absorbed the bulk of shipments.

Further, overseas sales in June were the highest recorded since 2004, with $119.8 million worth of products exported during that month alone.

With agriculture as a major industry in China, more than half of production is dedicated to this domestic segment each year.

There are about 150 suppliers of gasoline-powered water pumps in the country, with factories located mostly in Chongqing and Fujian province. The former houses many large-scale makers that can turn out 50,000 units in a month.

Most of the joint-venture companies, formed usually by Hong Kong- and Japan-based investors, are situated in Fujian.

The State Quality Supervision Bureau conducts random inspection on these makers yearly under efforts to ensure product quality.

	Ningbo Aosheng offers the SB40-35A model, a gasoline-powered water pump with a 20,000L per hour maximum flow rate, 30m pump lift, 8m suction head and 50mm outlet diameter. Price starts at $52.

China suppliers produce high-performance gasoline-powered water pumps for a range of purposes.

For drainage and irrigation, Fuzhou Launtop M&E Co. Ltd offers models LTP50C, LTP80C and LTP100C that meet CE, TÜV, EMC and EPA standards. Prices are $82, $91 and $205, respectively.

These designs have 22 to 31m pump lifts, 6 to 8m suction heads, and 2 to 14-inch inlet and outlet diameters.

Catering to the same applications, model QGZ25-20 from Ningbo Aosheng Machine Co. Ltd is a CE- and CCC-certified gasoline-powered water pump with a 30m lift, 8m suction head and 8,000L per hour maximum flow.

Units designed for firefighting are also being introduced. Models from Hengtai International Co. Ltd have a 60m pump lift and an 8m suction head.

The firefighting selection from T&K Enterprise Co. Ltd comes with a 55m pump lift and a 5.5hp engine. Models comply with EMC requirements and bear the CE and GS marks.

ISO 9001:2000-certified Jiangsu Jiangdong Group Import & Export Co. Ltd has launched similar designs featuring up to 71m pump lifts. The maximum flow rate is 430Lpm.

Suppliers such as Zhejiang Jojoy Leisure Products Co. Ltd are incorporating a 4-stroke gasoline engine with 4.75 to 7.15hp capacity in their latest products.

Copper, die-cast steel, high-grade stainless steel or aluminum alloy is being adopted for the body. Aluminum alloy is the top material choice for the pump head.

Although OEM designs constitute about three-fourths of exports, manufacturers featured in this report are strengthening their own brands' presence in the market.

At Fuzhou Launtop M&E, for example, models under the in-house brand represent 30 percent of shipments.

OBM products account for more than half of overseas sales at Ningbo Aosheng.

Forty percent of Jiangsu Jiangdong's exports consist of units carrying the in-house JD brand.