It is understood that the profits further down the perceived status of the hardware business in general. It is reported that the average profit in the hardware industry, only 5% -7%, while the insider disclosed that many companies as long as the profits will be around 3% of orders. There are about four or five years ago, 20% of corporate profits, has now fallen below 10%.
Looking at China in the hardware business, the majority of production parts mainly, the lack of independent brands, severe homogeneous competition, many companies lack the bargaining power, the pressure in the high CPI, the RMB exchange rate and high cost of the environment, are increasingly faced large. Major reshuffle in the market in order to gain a foothold in the tie, not be eliminated, it must upgrade and change the original extensive production mode, take the “high standard, high quality, high efficiency,” the development of the road. We can say that industrial upgrading, independent brands, develop new markets, the need to solve the main problem hardware.
Achieve industrial upgrading and easy, just from the perspective of procurement of equipment, a lot of companies are powerless workshops. Many companies want to buy new machinery and equipment, automation, but due to funding problems, and ultimately only an idea.
In addition to financial factors, as well as human factors. Since the hardware is a traditional industry, some processes must be completed manually, does not necessarily want to upgrade got up. Factor in this regard is also caused by the traditional metal industry must rely on manpower.
Many SMEs also recognize the long-term to do fittings, the added value is not high, the brand wanted to do. However, it is also able to do the brand was not easy. For the strength of the relatively strong companies, brand is relatively easy, but when these tasks fall before danzao many small businesses, has become an insurmountable mountain. For only a few million a year profit enterprise workshops, it is beyond their grasp.
On update all aspects of machinery and equipment subject to conditionality, difficult road of its own brand, the companies hope that through industrial upgrading hardware to improve the competitiveness of products and value-added way, very long.
Hardware experts believe that companies must do first is to ensure their quality, but the quality of hard, customers do not have confidence. At the same time, to develop products for consumer demand, must make its own characteristics. In addition, to enhance their management is also very important. Even small workshop enterprise, but also have a comparative advantage, to find their own extraordinary place, development can not be as extensive as before.
Although, metal industry enterprises to increase investment in Liangshan it is forced helplessness measure, but the sides to speed up the transformation of the entire industry hardware industry, hardware industry, so that last year became the “Quality Year”, either their own or a trade show in promote the transformation and upgrading of the industry down a lot of effort. Improve product quality, strengthening technological innovation, improve production efficiency, has become the only way out of future business development.

This article was written by: admin

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