Villa Hot Tub,Sauna Hot Tub In Hotel,Holiday Hot Tub In Hotel,Acrylic Spa In Hotel SpaRelax Co., Ltd. , https://www.sparelaxoutdoorspa.com
Traditional hardware tool industry seeks market survival
In the era of the planned economy, nearly all industries experienced a push for expansion in scale. However, the tool industry saw an especially pronounced growth. By the end of the 1980s, more than 100 key and designated enterprises in the tool sector had established a production capacity of 300 million high-speed steel cutting tools annually, along with over 10 million measuring instruments. China's output of high-speed steel cutters ranked first globally. However, in recent years, the price of tools has dropped significantly, with some companies reporting declines of up to 40% to 50%. As a result, national sales have only reached around 200 million yuan, revealing the consequences of overproduction.
Even more concerning was the situation in the mid- to late 1980s, when optimistic market forecasts led major players in China’s tool industry to not only expand their own operations but also establish numerous joint ventures to boost production capacity. Unfortunately, most of these joint ventures eventually broke away from their parent companies, operating independently. In addition, many state-owned enterprise employees set up their own workshops in secret, giving rise to the first wave of private and township-owned tool manufacturers in China.
These new enterprises benefited from more flexible management structures and were free from the historical burdens that weighed on state-owned enterprises. They had the potential to become a driving force in the reform and development of the tool industry. However, experts point out that due to limitations in talent, technology, equipment, and management, many of these companies are still struggling to grow beyond just increasing their numbers. Over just 10 years, total production surged to 1 billion units, but the product range remained largely limited to low-end items such as twist drills, construction bits, woodworking tools, and calipers. While the quantity is impressive, these products account for only about 30% of the total value of the domestic market.
Due to issues with branding and quality, these products have not yet entered formal manufacturing tool distribution systems both domestically and internationally. Nevertheless, they have made a significant impact on China’s tool export market.
Another major misstep in the development strategy of the hardware and tool industry, according to experts, was its failure to respond effectively to the wave of technological innovation and global manufacturing trends. The industry did not seize the opportunity to upgrade its product structure and service offerings in a timely manner. After two decades of reform and opening up, the gap between China’s tool industry and its international counterparts has not narrowed—it has actually widened. This is a harsh reality that must be acknowledged and addressed.