Fastener companies must lay "three big battles"

Fastener companies must lay "three big battles" According to statistics from the China National Machinery General Parts Association, the fastener industry experienced a negative growth in 2012, which was a year-on-year decrease of about 1.5%. The main reason was the lack of market demand, especially after the fasteners suffered international anti-dumping, export sales were presented. Falling trend. In 2012, the import and export volume of fasteners in China both fell: export volume was 2,461,100 tons, and foreign exchange earned through exports was US$4.516 billion, down 4.8% year-on-year and 2.4% year-on-year; fastener imports were 252,400 tons, and import amount was 2.892 billion. The US dollar fell by 4.7% and 2.2% respectively year-on-year.

For this reason, there is a fundamental problem in the development of fasteners in China, that is, there are defects in the growth model. Due to the obvious disadvantages of the current economic growth model, a series of practical problems such as the intensification of competitive capital, intensification of production materials, waste of resources, environmental damage, inequality of income between rich and poor, and flooding of low-grade products.

To solve this problem, it is necessary to transform the extensive growth mode into an intensive or refined growth mode. The transformation and development of fasteners in China cannot be delayed. The transformation and development approach is the main line for the future development of fasteners in China.

At present, the problems in the economic system of China's fasteners have caused the shortage of human capital, the proliferation of low-grade products, and the environmental damage that has been growing too rapidly. Ecological problems are even more difficult than social problems. Nowadays, with the large number of hazy days in large and medium-sized cities, it is impossible to see how much PM2.5 is intangible in terms of fasteners, and so many fine particles that are free in the air. The formation of non-day power.

The extensive growth of fasteners in China is mainly based on the increase in resource input to achieve growth. In the past 30 years, China’s fasteners have relied on the market economy system to achieve high-speed development. However, due to the deformed development of fasteners and the severe deterioration of economic structure, despite many years of demands for adjustment and transformation and development, the production value-oriented development model It has not been changed.

After the reform and opening up in the 1980s and 1990s, due to the constant pursuit of high economic growth, China has been following the export-oriented strategy of Japan and other Southeast Asian countries. It has used export demand to make up for the insufficiency of domestic demand and for a long period of time has been facing the Chinese economy. Development has played a very positive role. However, any policy that has played a positive role cannot be always effective.

Over time, the negative effect of this policy of relying on policies to support the expansion of exports has gradually increased, and various negative consequences have become increasingly prominent. Due to the low value-added and profitability of export products, China’s fastener export enterprises can only “strengthen by quantity” and rely on increasing export volume to maintain development. Therefore, such a situation has emerged, and China has consumed a large amount of non-renewable resources. Pollution of the environment bears the notoriety of “dumping,” but the bulk of profits is not in their own hands.

Intensified or refined growth means that technological advances and improved management efficiency play a dominant role in overall growth. The result is an increase in added value and an increase in profits. Because, if you rely on investment, although the output increases, but the cost also increases, which is not sustainable. The current problem is that the entrepreneurial environment and the government’s management of science and technology education have considerable deficiencies.

As long as we can build a system and policy environment conducive to innovation and entrepreneurship through reforms, we will be able to make a significant improvement in the technical level and added value of China's fasteners in a relatively short period of time. At present, the world's advanced fasteners are faced with large or small technological breakthroughs. If China’s fasteners can seize this great opportunity and exert their own advantages, they will develop some competitive products with international competitiveness. It is entirely possible.

In the absence of major fluctuations in macroeconomic conditions at home and abroad, the growth rate of production and sales of fasteners in 2013 will bid farewell to negative growth in 2012. Low-speed growth will become the norm, and the growth rate of production and sales will remain between 3% and 6%. The author believes that in 2013 and the next 3 to 5 years, fastener companies should focus on "dominant forces" and focus on "three major battles":

First, lay a good market to expand the defense. China's fastener companies should focus on the international and domestic markets, fully mobilize both domestic and international resources, do everything possible to expand the market and seize more market share. In the domestic market, the products are made to be free from people, from people to others, and to provide new economic growth points for the development of the company. We will vigorously develop overseas markets and have the conditions and capabilities to play steadily, actively “go global” and vigorously expand the international market.

Second, fight for the improvement of independent innovation ability. The key is to strengthen capacity building. Firms of fasteners should closely follow international and industry development trends and increase investment in the improvement of independent technological innovation capabilities, covering the entire process of product development, including design, testing instruments, processing equipment and test equipment. It is at the leading level in the industry, and at the same time that it is increasing the investment in technological innovation, it must also strengthen intellectual property management.

Third, lay a good management to promote protracted war. If the company wants to achieve lasting development, it will not be able to continue without management support. The brand needs to be stronger and stronger, with no basis for management, like a castle in the air. To reduce costs from the "cost project project", from the "lean production management project" to improve efficiency, promote "excellent engineering", and create "excellent" in order to have vitality and competitiveness in the international and domestic markets.

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