The price of raw materials in the hardware processing industry continues to rise.
After a wave of rises in the fourth quarter of 2007, bathroom hardware prices rose again in early March 2008. Since 2007, the international copper price has risen by 66%; the start-up price of copper in the London Futures Exchange has risen from the initial US$1,800/ton in this round to US$7,300/ton, a cumulative increase of more than 300%; the metal processing nickel required for the production of stainless steel The prices of other metal materials have risen sharply; since May 2008, ceramic enterprises have raised prices one after another, with an average increase of 8.6% for ceramic pieces. In terms of hardware processing in the domestic market. Partial shortages occurred; Baosteel and Australia’s Rio Tinto, one of the world’s major iron ore producers, reached an agreement on the benchmark price of iron ore in 2008. Rio Tinto’s PB fine ore, Yangdi fine ore and PB lump ore will On the basis of 2007, the prices rose by 79.88%, 79.88% and 96.5% respectively. This result has undoubtedly pushed the domestic steel enterprises to an urgent and important juncture… These figures can be said to be shocking. The prices of raw materials in the hardware processing industry are increasing from time to time. It’s no surprise that hardware products run at high prices
It has always had the advantage of low cost of raw materials and labor costs for manufacturing tools and hardware. For many years, my country has been the world’s largest steel producer and the world’s most populous country. In recent years, exports have maintained a steady growth trend, making my country one of the major importers of tool hardware processing products in the world. However, following the control of the national macro policy, the price of steel, the main raw material, has risen sharply since last year, the state has lowered the import tax rebate rate, and due to the influence of international conditions, the currency has appreciated from time to time, and the implementation of the 2008 Labor Contract Law has brought The increase in the interest of the labor force has gradually deteriorated the situation of the manufacturing industry in Shanghai, and the impact on the hardware processing industry with dense labor is particularly significant. The development trend of the domestic hardware industry is not optimistic, and it can even be said to be relatively severe.
Second, the operating status of the hardware industry market in the past seven years
The sales revenue of China’s metal products industry has been increasing year by year, with a growth rate of more than 14%, and the market scale has expanded from time to time. In 2006, the industry’s sales revenue reached 812.352 billion yuan, a growth rate of 29.39%, nearly seven years. Compared with 2000, the market size has expanded by 2.62 times. With the rapid development of the domestic economy and industry, the demand for a large number of hardware parts is strong, and the market scale is expanding. The production and sales rate of China’s metal products industry has remained above the industrial standard value of 96% for the past seven years. The ratio of production and sales in the market is reasonable.
3. Comparative analysis status of hardware industry sub-sectors in 2006
The metal products industry mainly includes 9 major sub-sectors. In 2006, the number of enterprises in China’s metal products industry reached 14,828. Among them, the number of enterprises in the structural metal products industry reached 4,199, accounting for 28.31% of the entire metal products industry, according to the “National Economic Industry Classification” standard. It ranks first in all sub-sectors; followed by the construction and safety metal products manufacturing industry, accounting for 13.33% of the entire metal product industry, the stainless steel and similar daily metal product manufacturing and metal tool manufacturing industries are only 32 different. , accounting for 12.44% and 12.22% of the entire metal products industry, respectively. The number of enterprises in the enamel product manufacturing industry is the least, 198, accounting for only 1.34% of the entire industry. The market size of the national metal products industry reached 812.352 billion yuan, of which the structure Sexual metal products accounted for 29% of the market in 2006. Slightly higher than the proportion of the number of enterprises, the enamel product manufacturing industry only accounts for 1.09% of the entire metal products industry.
Fourth, the internationalization of domestic competition will be the development trend of my country’s hardware processing industry in the next few years.
1. China’s position as the world’s hardware processing and manufacturing center will be further stabilized
China has become the most dynamic economic region in the world. China’s economic measures are relatively perfect, with the acceleration of China’s integration into the world’s economic situation and the rapid rise of economic strength. Industrial development is relatively naive and labor costs are low, and it has the comparative advantage of being a global hardware processing and manufacturing center. The hardware processing and manufacturing industry is characterized by its export-oriented development. Higher than the growth rate of sales in the domestic market; the main hardware and electrical products are in full bloom, and the strengthening of the middle position first means that the import of hardware products has increased overall in recent years: the import growth rate of major hardware products is higher than the output growth rate. Not only power tools, hand tools, construction hardware products such as conservative imported products have a high growth rate, but also the import growth rate of kitchen appliances and bathroom products, which used to account for half of imports, is also very significant in 2004. The great market and the gravitational force of the middle position will further attract the transfer of the manufacturing center of hardware multinational companies to China.
2. The cooperation between enterprises will be significantly strengthened
In order to gain a favorable competitive position and improve competitiveness, the world is competitive. Property capital is another theme that runs the industry. In 2004, Supor and Vantage were listed successively. Hongbao is also actively working on the listing. Wanhe’s capital market operation will not stop due to the failure of the reorganization with Yuemeiya. From the perspective of capital, the main feature at present is that the expansion of capital is intensifying. From the perspective of competitive behavior, cooperation in resource sharing among enterprises is increasing.
3. The decomposition of the north and south poles of enterprises will further intensify
The direct consequence of this kind of high-speed shock is the expansion of the trend of the decomposition of the North and South poles in the hardware processing kitchen and bathroom brand camp.
4. The competition among sales channels is getting fiercer day by day
Quality pressure has increased, due to the oversupply of domestic hardware processing kitchen and bathroom products. The sales channel has become one of the key competitive factors, and the fight for the channel is becoming more and more intense day by day. On the one hand, kitchen appliance manufacturers have strengthened the control of retail terminals, striving to reduce sales links, save sales expenses, and make sales channels develop in a professional direction, and corporate sales models are developing in a direction that can adapt to various markets at the same time. On the other hand, the development trend of the sales industry has made the status of large-scale home appliance chain stores rise from time to time, and their ability to control the industry has increased, participating in and triggering price competition that was previously mainly dominated by manufacturers. Large-scale retailers rely on their broad market coverage, sales scale and cost advantages, and their ability to control production enterprises in terms of product pricing and payment delivery will be strengthened day by day.
5. Market competition will shift to high-quality, high-tech products
The profit margins of all stages of the hardware processing industry chain are being compressed, and the room for price reduction is decreasing day by day. More and more enterprises realize that price competition alone cannot establish core competitiveness and is not the direction of long-term development, and strive to explore new development paths. Many hardware companies have increased technical investment, developed new products with high-tech content, regarded product differentiation as a long-term strategy for enterprise development, sought new market demand, and established new economic growth points (such as small household appliances and other similar industries), following the deepening of competition. In order to achieve sustainable development of enterprises.
6. The integration of domestic and overseas enterprises will be further accelerated
To expand the international market faster, domestic hardware processing enterprises in order to improve their own strength. The integration with foreign enterprises will be accelerated through various means to improve product quality and competitiveness. While continuing to expand the markets of traditional countries such as the United States and Japan, Southeast Asia, the Middle East, Russia, Europe, and Africa will also fully blossom.