The hardware tool industry needs to seize development opportunities

        With the continuous application of modern technological achievements in various industries, the competition in the hardware industry is becoming increasingly fierce. To gain a firm foothold in any field of the hardware industry, one must fully understand the market development trends. Hardware tools encompass a wide range of manual, electric, pneumatic, cutting tools, automotive maintenance tools, agricultural tools, lifting tools, measuring tools, tool machinery, cutting tools, fixtures, cutting tools, molds, cutting tools, grinding wheels, drills, polishing machines, tool accessories, measuring and cutting tools, abrasives, and more.

        Most domestic manual tool enterprises primarily focus on low-end products or engage in OEM and ODM. High-end and branded products are still dominated by European and American countries. Due to the shrinking profit margins of manual tools and the decreasing room for price reduction, it is difficult for enterprises to establish core competitiveness solely through price competition. Therefore, they should explore new development paths.

        The hardware industry is an important component of China's light industry, representing a thriving sector that is both highly competitive and closely related to people's lives. According to research, over 99% of enterprises in this industry are private small and medium-sized enterprises, primarily located in provinces and cities such as Guangdong, Zhejiang, Jiangsu, Shanghai, Fujian, Shandong, and Hebei.

        Currently, China ranks first in the world in the production of many hardware products, such as lighters, zippers, vacuum cups, wrenches, pliers, sliders, knives, and scissors, which occupy a significant share in the global market and have an increasingly greater impact on the world's hardware industry. Presently, Chinese hardware products are available in over 220 countries and regions worldwide, establishing China's position as a major producer of hardware products. According to Luo Baihui's survey data, the total output value of the hardware industry has reached 800 billion yuan, maintaining a growth rate of over 15% from 2005 to 2008. In 2008, the industry's total exports reached 50.3 billion US dollars, accounting for approximately 40%-50% of the industry's total output value. Except for a 7% increase in 2007, the industry has consistently maintained a high growth rate of 20%-30% in the past.

        However, since the fourth quarter of 2008, the once-in-a-century global financial crisis has dealt a huge blow to export-oriented enterprises. Overnight, export orders disappeared, and some signed export contracts, even with deposits paid, were returned under various excuses. Industries such as tool hardware, construction hardware, locks, cutlery, and zippers have been most significantly affected by this crisis. Some say this is a battle without gunsmoke, where there is no real enemy; the true opponent is oneself. Because many of our export enterprises primarily engage in OEM, lacking their own brands and sales channels, our weaknesses were fully exposed during this financial crisis.

        Customs import and export statistics show that the total export value of hardware products nationwide in the first half of this year was 26.396 billion US dollars, up 33.2% year-on-year, while imports amounted to 7.984 billion US dollars, up 25.1% year-on-year. According to the analysis of the production of some hardware products provided by the National Bureau of Statistics in the first half of this year, the production of locks was 850 million, up 17.5% year-on-year; the production of household gas stoves was 12.588 million units, up 5.8% year-on-year; the production of household gas water heaters was 6.886 million units, up 63.6% year-on-year; the production of household range hoods was 8.305 million units, up 34.7% year-on-year; and the production of daily-use stainless steel products was 1.105 million tons, up 51.4% year-on-year.

        Among them, electric tools are the most widely used hardware tools in the whole society. With the progress of the times and society, the electric tool market has developed rapidly. At the same time, various types of electric tools have occasionally caused harm to consumers due to quality issues in various aspects. Therefore, countries around the world are becoming increasingly strict with the requirements for electric tools in their own markets. The European Union has formulated a special 60745-1 standard for hardware electric tools, aiming to establish norms for hardware electric tools and impose technical specifications on electric tool products entering the European market, thereby reducing or avoiding the harm caused by electric tools to consumers. Europe has also introduced an electrical appliance certification ordinance.

        All specifications and series of power tool products exported by relevant enterprises to the EU must pass the EU electrical appliance directive certification and be marked before export. Products that are about to expire should apply for certification in a timely manner. In addition, enterprises need to make relevant preparations in advance during the testing period of power tools. Enterprises also need to accumulate experience in dealing with this, and the involved products will be adjusted accordingly according to EU regulations, otherwise they will be eliminated by the market.

        In the face of increasingly fierce market competition, if domestic enterprises do not attach importance to it, it will affect their long-term development. Providing good after-sales service is also of utmost importance. Among the electric tools sold globally, the vast majority are produced and exported from China, making China the world's leading supplier of electric tools. While the electric tool industry is developing, some problems are increasingly emerging.

        Especially, the reform of the scientific research and development system has made slow progress, resulting in a significant gap compared to foreign countries. The export products generate low foreign exchange earnings, have low performance levels, and are priced low. The industry is also constrained by factors such as small enterprise scale, low concentration, and rising raw material prices, which severely hinder its further development and quality improvement. Electric tool enterprises must seize the new development opportunities, increase technological innovation, actively pursue product certification, accelerate technological transformation, improve supporting measures, and actively create conditions to attract foreign investment and promote asset restructuring. Only in this way can they remain invincible in the new situation.