Hardware industry needs advanced technology to add bricks and tiles

China has become a tool-manufacturing country and is currently working hard to improve quality. The industry adopts advanced technology, advanced equipment, and advanced technology in a comprehensive manner. The industry-wide product standards equivalently adopt ISO international standards. More importantly, international exchanges between industries are more frequent, and the quality of the leaders and managers of all enterprises has been raised comprehensively, becoming a tool for our country. The new impetus for the continued development of the industry. While seeing statistics on the import and export of the tool industry in 2011, Zhou Jihua, secretary general of the Tool Hardware Branch of China National Hardware Association, made no secret that China’s tool hardware status was further established in 2011.

According to customs statistics, in 2011, the export value of tool hardware was 10.606 billion U.S. dollars, an increase of 26.7% year-on-year. Among them, small-sized power tools were US$2.614 billion, up 22.3% year-on-year; sawing products were US$1.212 billion, up 24.9% year-on-year; measuring tools were US$897 million, up 50% year-on-year; and garden tools were US$563 million, up 16.8% year-on-year. The pliers category was US$608 million, a year-on-year increase of 28.3%; the Wrench category was US$607 million, which represented a year-on-year increase of 24.1%; and the kit tool was US$431 million, a year-on-year increase of 15.9%.

In terms of product imports, the annual value of imports was US$5.166 billion, a year-on-year increase of 21.9%. Among them, the measuring tool was 2.673 billion U.S. dollars, up 26.4% year-on-year; the small electric tools were 433 million U.S. dollars, up 16.1% year-on-year; the wrenches were 118 million U.S. dollars, up 2.6% year-on-year; the sawing machines were 234 million U.S. dollars, up 35.3% year-on-year; The tool kit was US$40 million, an increase of 53.8% year-on-year; the pliers category was US$36 million, an increase of 28.6% year-on-year; and the gardening tool was US$0.049 billion, a year-on-year increase of 28.9%.

It is not difficult to find from customs statistics that traditional hand tool products represented by wrenches, pliers, and saws are still favored by overseas buyers, and the long-term growth rate of around 20% also proves that Chinese hand-tool products are taking over. Bigger market space. Exports of products such as small power tools, gardening tools, and kits have also increased further. This shows that the demand for such products in major markets in Europe and the United States has not been reduced due to the impact of the financial crisis. These products are the major consumers of DIY products.

What is noteworthy is the import aspect. Although the world’s largest wrench and pliers manufacturing companies are almost all in China, the import volume of these two types of products has reached nearly 150 million U.S. dollars; the measurement products are even more so, although there are Oriental Seiko, Great Wall Seiko, etc. A group of leading companies led the large-scale production enterprises in Zhejiang Province. In 2011, the export of measuring tools was US$897 million, a growth rate of 50%, while imports reached US$2.673 billion, maintaining a high growth rate of 26.4%, and the measurement of individual product trades. The deficit reached 1.776 billion U.S. dollars, which is also rare in the entire hardware industry.

Some people in the industry believe that although China is the world's largest hand tool production base, most of its export tools are OEM-based. Many products are actually produced by domestic companies. Foreign well-known brands purchase and label back to the domestic market. Therefore, domestic tool companies urgently need to make more efforts in brand building and channel construction, to avoid the emergence of production companies to make hard money, and high profits for the foreign brands to earn the embarrassing situation.

When discussing this issue, Wang Qiuqin, secretary general of the Jinhua Tool Hardware Industry Association, said that in 2011 Jinhua’s tool manufacturing companies were basically producing at full capacity. Enterprises generally reflected that orders could not be made, and they wanted to expand production scale but were also subject to recruitment difficulties. . But even so, the profit level of the production enterprises is still very low. Except for a few big companies, profits can reach 20%, most companies' profits are below 10%.

One problem that tool owners are generally aware of is that the Heat has spent over a year, but not much money. The reason is because the product price cannot be sold, and more often it is competing at a low level of homogeneity. Lack of brand awareness and influence, lack of domestic and international market sales channels, making most companies lack of pricing power and market control, can only wait for dinner to wait for orders.

Of course, these are not achieved overnight. It may take quite a long time to realize. We hope that our production companies can realize this problem as soon as possible and gradually improve. Wang Qiuqin said.

Some people in the industry also believe that when our companies are still exporting, they are still winning by volume. The increase in sales actually does not bring about an increase in profitability. It is entirely dependent on the increase in the number of export products, which may become a constraint on the development of the industry. Hidden danger. In particular, the competitiveness of Taiwan’s tools and Indian tools in the international market has also caused great pressure on our companies.

Zhou Jihua believes that there are no hidden dangers. For many years, China’s tool development has been very healthy. High-speed, continuous, steady improvement in quality and market share have been expanding year by year. It is due to the rapid growth of the Chinese tool industry that the Western tool manufacturing industry has been shrinking year by year. . Of course, there is competition in the Chinese tool industry, such as India, or will the Chinese tool not become a volley of roses? In the future, as long as China's tool development maintains the current momentum of development and is not in a hurry to advance steadily, it will certainly be able to achieve the goal of a tool-building power.