Analysis of Current Status of China's Hardware Tools Industry from January to June 2016

According to statistics, the total export volume of the tool hardware industry during the "12th Five-Year Plan" period exceeded 60 billion U.S. dollars, the cumulative import value was nearly 30 billion U.S. dollars, and the average annual export volume maintained at more than 10%. In 2011, tool hardware exports exceeded 10 billion U.S. dollars, becoming the world’s largest producer and exporter of tool products.

At present, the tool hardware has a production value of over 100 billion yuan. Wendeng Power Tools Group Co., Ltd. is the world's largest manufacturer of adjustable wrenches; Hebei Zhongbo Explosion Protection Tools Group is the world's largest manufacturer of explosion-proof tools, and exports account for nearly 80% of the international market. Shares; Jiangsu Tongrun Co., Ltd. is Asia's largest toolbox manufacturer; Hangzhou Superstar Technology Co., Ltd. is Asia's largest exporter of tool products.

At present, the China Hardware Products Association has granted a total of 5 tool industry clusters, namely “China Hardware Town” in Daxin Town, Zhangjiagang City, “China Tool Hardware Industry Base” in Jinhua City, and “China Tool Hardware (Axle Adapter) Industry Base in Jiande City. "Lin'an City, "China Tool Hardware Production Base (Lin'an)", Yiqiao Town, "Hometown of China's Tool Hardware." From the perspective of the development of the tool hardware industry cluster, the blocky regional effect has led to significant growth, and the number of enterprises in the cluster and the overall size of the industry have maintained a steady growth. The healthy operation of the tool hardware industry cluster has laid a solid foundation for the steady development of the industry.

Industry development is at an opportune time

At present, the development of the industries of traditional tool manufacturing countries in Europe and the United States is facing a recession, and the Chinese tool industry is developing in the direction of specialization, clustering, and gentrification.

During the “Thirteenth Five-Year Plan” period, industry backbone enterprises must adopt advanced forging, mold processing and restoration, multi-position CNC machine tools, controlled atmosphere heat treatment, medium and high-frequency induction heating, and environmental protection electroplating and other advanced technological transformation. Traditional industries, improve labor productivity, improve product quality, grade, added value, change the mode of development, and take the path of innovation, development with high standards, high quality, and high efficiency. At the same time, it is necessary to further promote the construction of the industry in terms of manufacturing, sales, standards, and inspections on the basis of strengthening domestic and foreign exchanges, and enhance the Chinese tool industry's right to speak in the global tool industry chain. With the enhancement of the country's overall strength, China's high-end manufacturing industries, such as high-speed rail manufacturing, have gained global recognition. This has opened the door for the international recognition of industrial-grade tool hardware products. The rise of China's manufacturing industry requires both the application and output of high-end products and the overall improvement in the level of manufacturing of industrial basic products. In addition, the “One Belt, One Road” that the country is promoting is also laying the best channels for tool hardware products to reach emerging markets. In terms of domestic sales, as the demand for professional manufacturing in the country has increased and the sales channel system has been gradually perfected, there have been tremendous improvements in the case of small internal sales and slow returns. Enterprises can either build their own domestic sales system or they can cooperate with trade dealers with comprehensive strength to jointly develop the market. The stability of the domestic market will not only help companies effectively resist overseas market risks, but will also bring more business opportunities for the development of the company. No foreign market did little, and there was no instability in the domestic market. The future development of the tool hardware industry still needs to maintain internal and external balance.

Service-oriented manufacturing upgrade

The transformation and upgrading of service-oriented manufacturing will become the direction of future manufacturing development. Tool hardware is an industrial service product that provides basic support for the development of the manufacturing industry. It is also a typical example of service-oriented manufacturing development in the hardware segment industry. At present, the backbone enterprises in the industry are no longer confined to simply providing after-sales services, but have realized service advancement (from design and R&D), joint development, and full-process coverage, and are striving to complete the transition from production-oriented to service-based.

Although it has achieved a series of achievements in serving domestic high-end professional users, some tool manufacturers have begun to provide product services for high-speed rail construction, vehicle maintenance, shipbuilding and other specialized fields, but the industry still faces difficulties and challenges. While insisting on pursuing high standards, high quality, high efficiency, and high profit, tool manufacturers should also strengthen channel creation and brand awareness, and strive to make domestic high-end tools gain more recognition and influence.

During the “Thirteenth Five-Year Plan” period, the tool hardware industry must continue to change from extensive to intensive, from labor-intensive to technology-intensive, from quantitative expansion to qualitative improvement, and from low cost to high value-added. Promote the transformation of high profit margins, gradually increase the proportion of export of self-owned brands, and establish a high standard, high quality, and high efficiency development concept, adopt advanced technology to transform traditional industries, increase investment in science and technology and R&D, and increase The added value of products truly turns from big to strong.

To the high-end transition

The key task of the “Thirteenth Five-Year Plan” hardware industry is still structural adjustment. In order to improve quality, establish brands, and increase profits, we will increase the research and development of traditional enterprises and increase efficiency, and strive to complete the substantial transformation of China's hardware industry from a manufacturing power to a manufacturing power during the “13th Five-Year Plan” period. To meet the domestic market, especially the high-end market demand for hardware products. While further expanding the international market share, it is necessary to nurture a batch of brand enterprises that have competitiveness and influence in high-end markets at the international and domestic levels.

Improve and stabilize product quality. At present, the product quality and overall quality level of China's hardware products industry have been significantly improved over the past, but compared with foreign high-end products, there is still a big gap in product quality; product quality is unstable, and some of the materials used are only considered Cost, no choice of the best, mold processing and other related processes and process management tools are relatively extensive, the use of product standard quality level is not high.

To improve product quality and stabilize product quality, the first is to increase ideological awareness. If 30% of companies now do high-end markets, they can draw 60% of companies to follow suit, and now more than 90% of domestic high-end markets are foreign brands. Secondly, quality improvement and stable quality are inseparable from advanced manufacturing equipment. The status quo of the current manufacturing equipment manufacturing industry is unbalanced and the emerging industry is not balanced. It is still in the "2.0" era. Third, improving quality must have a high quality product standard. The standard is the law of product quality. Only high standards can guide the production of the industry. Fourth, the sense of innovation to enhance product quality must also be strengthened.

Establish brand awareness. The brand is a fatal flaw in the competition between China's hardware industry and foreign brands. Some of our products do very well, but they can't sell a good price, because the brand's popularity has not been established in the minds of consumers. The high-end market refers to price guidance, and foreign brands should follow the pricing of our products.

The pursuit of high efficiency and high added value. Doing business must be effective so that sustainable development can be achieved. The improvement of production efficiency still depends on research and development.

We will innovate and improve the coordinated development mechanism of the industrial chain and guide the industry in transition to service-oriented manufacturing. The industrial chain includes the value chain and supply chain. There are a large number of upstream and downstream relationships and mutual value exchanges in the industrial chain. During the “13th Five-Year Plan” period, the industry will work with the goal of establishing a coordinated development mechanism for the entire industry chain. Companies that are not capable of quality and branding should not be eliminated by the industry and should adapt to the current structural adjustment. Selecting a certain part of the industrial chain, doing fine work, doing excellent work, and doing a good job supporting services are also a choice. Industrial cluster areas should establish different scales of enterprises, supply of raw materials, and coordinated supporting mechanisms between upstream and downstream industrial chains to avoid homogenous competition.

Report details page: http://service.made-in-china.com/market-analysis/industry-analysis-report/695064.html

More reports: http://service.made-in-china.com/market-analysis/industry-analysis-report-1.html