In 2011, the international winds were surging, the global financial crisis was still raging, exchange rates were smashing, and raw materials continued to rise. China's hardware surging, the domestic sales battle is strong, capital operations tend to be active, the rapid growth of the local hardware industry, hardware giants gradually clear. Luo Baihui, head of the International Die & Metals and Plastics Industry Suppliers Association, said that with the gradual improvement of the global financial market, the total volume of metal export in the country gradually recovered in 2011, basically returning to the level before the world financial crisis in 2008. At the same time, affected by the global economic crisis and domestic demand, in 2011, many export-oriented hardware companies turned to the domestic market one after another. The proportion of domestic sales of hardware companies was significantly higher than in 2008 and 2009. According to incomplete statistics, before 2008, many hardware companies exported and domestically sold 8:2 or more. According to relevant statistics in the first half of 2011, the proportion of most hardware companies exporting and domestic sales reached 5:5 or even 7:3.
Chinese metal currents surging
The 2011 analysis report of the National Light Industrial Tool Hardware Quality Supervision and Inspection Shanghai Station, the Shanghai Tool Hardware Product Quality Supervision and Inspection Station, and the Shanghai Tool Industry Research Institute Test Center showed that in recent years, China has become the largest in the world due to the rapid development of the manufacturing industry. Tool-manufacturing countries have an annual export value of about 3 billion U.S. dollars. Nearly 10,000 tools hardware manufacturing companies, including only three listed companies, nearly 100 key manufacturers of various types of products. It is worth noting that tool hardware is a labor-intensive industry, and the quality of products is uneven. In some provinces and regions, counterfeit and inferior products still appear in the market. In response, Luo Baihui proposed to strengthen the standardization of the tool hardware industry. It is particularly important and urgent to standardize and guide the domestic tool hardware market and export trade at this stage.
According to customs statistics, the total import and export volume of the hardware industry in the first half of 2011 reached 34.38 billion U.S. dollars, an increase of 31.3% year-on-year. Among them, exports totaled 26.396 billion U.S. dollars, an increase of 33.2% year-on-year; imports totaled 7.984 billion U.S. dollars, an increase of 25.1% year-on-year. There are a total of 223 exporting countries and regions, and the top five countries and regions for export products are still in order: the United States, Japan, Germany, the United Kingdom, and Hong Kong, China. Among them, the export value of construction hardware products was 10.438 billion U.S. dollars, an increase of 31.2% year-on-year. At the same time, the annual import value of construction hardware products was US$4.99 billion, an increase of 27.5% year-on-year. The import of architectural hardware accounts for nearly 50% of the total imports of hardware products, indicating that the domestic high-end market is still occupied by overseas brands.
Statistics from the National Bureau of Statistics show that from January to June 2011, there were 8,603 large-scale enterprises in the hardware industry, and the cumulative total industrial output value increased by 26.01% year-on-year, which was much higher than the same period of last year. Among them, the building decoration and plumbing parts industry completed the first half of the total industrial output value of the industry accounted for 17.97%, ranking first. In the January-October of 2011, the hardware industry showed a recovery growth, and the industry-wide sales increased by 27% over the same period of last year. Among them, the gas appliance industry has the fastest development with a growth rate of 51.7%, stainless steel products of 40%, locks of 15.9%, cooking appliances of 12%, architectural hardware and shower rooms of 27%, kitchen equipment of 15% and cooking cookers of 25%. The architectural hardware maintains an average level above the industry and ranks third in the hardware industry.
The rapid growth comes from the gradual transformation of the industry after the crisis. It comes from the industry's continuous guidance of the company's two legs to walk and the continued development of the domestic market. This positive effect has led to remarkable results, triggering a full rebound in the construction hardware industry. In particular, there has been explosive growth in domestic sales, achieving a high growth rate of 27% in the industry. Luo Baihui, head of the International Die & Metals and Plastics Industry Suppliers Association, said that with the recovery of the international economic situation, China's hardware products have experienced a recovery growth. In 2011, China's hardware products exports are both rare opportunities and difficult challenges.
opportunity:
1, hardware products export tariff agreement tax rate continuation
Since January 1, 2011, China has further adjusted import and export tariffs. In this tax rate adjustment, China has begun to implement agreements with ASEAN, Chile, Pakistan, New Zealand and other countries. The above countries will also implement In 2011, we implemented a corresponding treaty tax rate for our products. The implementation of the treaty tax rate will benefit many industries, including hardware products, and import and export companies.
2. The world economy continues to recover
In 2011, the world economy will continue to 'recover', the demand in the international market will continue, demand in emerging markets such as South Asia, Eastern Europe, Russia, and the Middle East will grow rapidly, while local companies in the EU and US markets for traditional hardware export destinations will not be fully restored. , China's hardware products company is expected to expand its export share.
challenge:
1. Increase in the cost of raw materials for hardware products
Recent raw materials in the hardware industry have seen a significant increase in prices or expectations of an upsurge: Copper prices have been soaring since last year; long-term negotiations for iron ore are likely to lead to 'crazy stones', leading to soaring steel prices; aluminum, zinc And a variety of non-ferrous metals also have strong expectations of rising prices; oil and other fuel prices are also rising ... ... the overall rise in raw materials will significantly increase the cost pressure on hardware companies, leading to the profit margin is not much further compression.
2, hardware products companies are currently in demand gap
The shortfall in employment demand that began in early 2011 has continued until the end of the year and is likely to continue in 2011. All provinces and cities have adjusted the minimum wage standard one after another, resulting in an increase in wages for employees of hardware products companies. Even so, some companies still can't keep people. Staff turnover is common.
3, *** appreciation and inflation caused the pressure on hardware products to increase significantly
Recently, *** has suffered significant pressure for appreciation, resulting in a decrease in the competitiveness of export hardware products in the international market. A lot of hardware products foreign trade personnel reported that the company is currently not accepting long-term orders, especially long-term orders for exports to Europe and the United States, emphasizing some short-term orders, because the company is concerned about the losses caused by exchange rate settlement and the narrowing of profit margins. Over time, the survival of hardware manufacturing companies will be severely challenged.
Hardware Industry Planning Five Transformation Directions
The 12th Five-Year Plan has higher requirements on the basis of the Eleventh Five-Year Plan. In recent years, the country has proposed the transformation of industries to low-carbon and environmental protection. However, how to make specific changes requires industry and enterprises to carry out in-depth thinking and deep-seated changes in light of their own conditions. Transformation is not a change of career, not from the current production area to other production areas. In fact, the core of industrial transformation is upgrading, which is moving from the current situation to a higher level industrial model. In the recent period, the association has refined the five priorities of the 12th Five-Year Plan based on the status of completion in the 11th Five-Year Plan, the trend of the 12th Five-Year Plan, and the combination of national requirements for industrial policy development and industry characteristics. This is the next five years. Hardware industry planning and promotion of the main direction.
The first is the transition from extensive to intensive.
In the 15 years of development of the Ninth, Fifteenth, and Eleventh Five-Year Plan, the nation's manufacturing industry has basically taken an extensive development path, including the hardware industry. However, at the time, private enterprises had just started and were in the initial stages of initial accumulation. In the beginning, there was bound to be a blind pursuit of profit maximization. High-pollution, low-level, repetitive labor, low-end product surpluses, and high-end product shortages have always been a problem. Accompanied by the growth of companies and industries. At the time, the unilateral pursuit of digital growth blindly caused a waste of resources and environmental damage. This was not only a negative impact on the industry but on the entire society. Today, with the development of society, this growth model has already gone. To the end. Luo Baihui, head of the International Mould and Hardware and Plastics Industry Suppliers Association, said that the core of extensive transformation to intensive is to improve product processing capabilities, improve manufacturing equipment and processes, and enable product quality to meet the level of foreign products. In fact, at present, many OEM companies do not have poor product quality. However, because there is no brand and no sales channel, they are passive in the market. In the international market, China’s products are also encountering endless trade frictions and anti-dumping. Therefore, upgrading quality and creating its own brand, channel, and independent innovation capability have become imperative, and the shift from extensive to intensive is imminent.
The second transformation is from labor-intensive industries to technology-intensive industries.
The faucet industrial design competition announced at the China International Hardware Show in September this year starts with industrial design and provides guidance for increasing product technology content and added value. As far as the current situation is concerned, there are a wide variety of architectural hardware products, each with its own characteristics, and it is hoped that it will become more technologically intensive and there is still much room for improvement. As international high-end products continue to enter the domestic market, it will be difficult to increase the technological content in the future market. Now that the environment at home and abroad has undergone a very big change, companies are facing the pressure of technological upgrading, the high degree of foreign dependence, and the increasing pressure of trade friction. Therefore, it is proposed that labor-intensive and technology-intensive upgrades will be needed for the future development of the industry. Very necessary.