At present, the whole market profits among hardware companies are gradually decline this situation and overcapacity have a certain relationship. Homogenization of the product backlog, tend to compete with the price war, the consequences can be imagined. Insiders said that the future trend of China’s exports of metal products, high value-added products will be replaced by low-value-added products.
In recent years, the development pattern of China’s hardware industry is quietly changing, before is in short supply, and now has gradually become an oversupply, industry overcapacity problem. The current development of the industry is tending to scale and diversification, to seek sustainable development, industry transformation and upgrading, increase technology investment and improve product quality has become inevitable.
Hardware industry has bid farewell to the 10-year period of rapid development, with related businesses compete in depth, hardware industrial chain profit margins are various stages of compression, the price is decreasing. Meanwhile, the international market for our products, hardware requirements are gradually changing, the quality, packaging, delivery deadline of hardware products have higher requirements, even gradually extended to the production process and product development aspects. Insiders said that a few years ago about 20% of the profits as well as the majority of SMEs, and now the profit has fallen below 10%.
Most domestic small and medium enterprises in the production of metal parts mainly, the lack of independent brands, serious homogenization of competition, companies lack the bargaining power at high CPI, the RMB exchange rate and high cost of the environment, are increasingly facing pressure big. In this case, the transformation and upgrading has become an inevitable trend of future development of the industry.
Future changes in China’s new hardware products exports face, will be the growth of high-tech products exports, the original low value-added metal products will be a group with a high value-added exports of high-tech products to replace.

This article was written by: admin

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