Chinese Hardware Industry Highlights The International Competitive Edge – China Sodium
Hardware industry is a traditional and new and modern industries. Hardware products widely used in the past, people call it hardware, such as nails, scissors, wrench, tool what is, and we need time to shop can be bought several smoothly, no one how much these things as objects. But Do not look at these small metal products, and now has developed into a world influence of the largest industry.
1, hardware development in various categories
With the development of the times, hardware toward personal wealth is that people can feel. Only a small lock, for example, before the family is just general household locks locks, bicycle locks, but with the motorcycle, automobile industry, high-end residential development, a number of companies to develop modern means of transport suitable for all kinds of motor lock, car lock, anti-theft security lock. Not only lock varieties has increased, and the integration of traditional products showed the trend of high-tech, electronic locks, fingerprint lock, and so one after another; traditional tools hardware, but also changed: garden tool to in-depth extension of a simple pruning twig of the scissors, step by step for the new development of family-and community-building manual, power tools, weeding machine, etc. replaced.
According to statistics, China’s hardware products from the early 80s of last century, 40 kinds of products, less than 500 varieties, surge to the present more than 10,000 varieties, an increase of 20 times; product categories have also been the traditional daily-use hardware from the past, Architectural Hardware, tools, door hardware three categories increased, including shower rooms, gas appliances, range hood, kitchen equipment, cooking utensils and other 10 products.
2, hardware, enterprise economies of scale
The number of enterprises in China hardware from the early 80’s to 50000 more than 2,000. Ultra-billion-scale enterprises from the ring in 1988 when the statistics, Zhang Koizumi, solid edge, the Great Wall Seiko, Wen Deng Wei Li, 14 enterprises, the rapid rise to the present more than 100. Today, the hardware scale enterprises are mostly owned by a modern factory. For example, 10000 and the company’s production workshop, the tall plant to natural light, modern style, both conducive to the production, but also environmentally friendly and completely get rid of the hardware business in the past in people’s minds, “small, poor, chaotic,” the backward image.
In the coastal areas of Zhejiang, Guangdong, Jiangsu, Shanghai, Shandong and other places, has formed a number of characteristics of the economic industrial base, metal industry has become the backbone of local industry or focus on the development industry and hardware industry in the country have played an important role, such as Guangdong Xiaolan Town, Yuhuan County, Zhejiang Province has become China’s leading hardware production and export base; Yangjiang, Guangdong has become China’s largest production base of knives, scissors; Wenzhou, Zhejiang, was awarded the “Chinese locks are” title; Hebei Anping wire mesh industry base built , Asia 80% of the mesh from Anping.
China’s hardware industry to an annual growth rate of 20% of steady development, the annual output value of 4,000 billion yuan, higher than the household appliances industry. Data show that exports of metal products in 2005 amounted to 30.512 billion U.S. dollars, year on year increase of 26.44%. China’s exports of light industry as a whole accounts for about 25% of the country’s total exports, hardware industry, light industry exports ranked the top three.
Three, metal industry, highlights the international competitive edge
In recent years, China’s hardware industry’s international competitiveness has been increasing. Our hardware products, trade specialization index (TSC Index) remained at between 0.78-0.85, and increased year by year, which shows that our hardware products, import and export trade status has been greatly improved, and the whole still in a relatively advantageous position . On the other hand, China’s comparative advantage index of metal manufactures (RCA index) is basically maintained at 0.8 to about 0.9, indicating that China’s hardware products with a moderate international competitiveness. But it should be noted that in recent years, China’s hardware products, RCA index showing a declining trend, mainly because of China’s hardware products are labor-intensive products, due to capital, technology and content is not high, in the international market more susceptible to the developed countries barriers to trade restrictions. Die 100-hui Luo, CEO pointed out that the view from the products and the enterprises themselves, and many hardware companies approach is a form of processing trade, technological innovation capability is not strong, which makes China’s hardware industry has insufficient capacity for competition in the international market gradually lost their advantage , in the future course of development, for the major comparative advantage of labor costs on hardware industry, at the same time weakening the comparative advantage will increasingly need to rely on and enhance their competitive edge to maintain and enhance the international competitiveness of the industry. According to Die 100-hui Luo, CEO survey said that at present China has formed the Pearl River Delta, Yangtze Delta and the Shandong Peninsula three hardware industry zone, Yongkang, Zhejiang appeared, Zhongshan Xiaolan, and Jiangsu Qidong other metal industry cluster.
The development of China’s hardware industry cluster reveals eight major advantages:
One is beneficial to the depth of the division of labor between enterprises and technological innovation. Every enterprise will be fully funding, focus on the most advantageous to do their part, that the enterprise’s core competencies, other related outsourcing to professional company to complete, each product is a summary of a number of core competence.
Second, it helps to save transaction costs. Enterprises are faced with the nearest, a large number of raw materials suppliers and equipment suppliers can lower costs, higher demands, faster speed to purchase a variety of inputs, including raw materials, spare parts, machinery and equipment, the kinds of services and human resources.
Thirdly, it is beneficial to industry and the professional market, pushing each other forward. Industrial cluster is conducive to the formation of the professional market, but also has a greater impact at home and abroad the professional market, both pro-business product sales, but also conducive to the information, and timely adjustment of product structure.
Fourth, it helps to stimulate the sense of competition. The same kinds of products from a large number of production among enterprises will naturally compete, so as to continuously improve product quality and grade.
5 is conducive to Investment. Supporting industries within the industrial cluster system and perfect service system, starting a business with low entry costs and exit costs, not only conducive to attracting foreign direct investment, but also conducive to the cluster of enterprises within the domestic and international capital markets.
6 is conducive to governance “credit deficit disorder.” As the regional industry concentration, among many enterprises to know the root Zhidi, once late payments, forgery, and avoiding the debt and other dishonest acts, it will immediately at the local spread, promises difficult for enterprises to locally based, so the phenomenon of corporate dishonesty between low probability.
7, it helps to promote business innovation. A variety of the latest market, product and technical information gathered, coupled with frequent exchanges between a variety of information within the cluster to promote a greater chance of collision of innovative ideas. LAW 100-hui said the competition within the cluster, as well as personnel exchanges also makes businesses more intense desire to learn, easy to drive innovation in the whole industry.
8 is conducive to the creation of regional brands. Regional industrial advantages and product features are conducive to the formation of regional brand, brand high-impact areas to attract more outlets, suppliers, investors, and various talents. Thus further contributing to the prosperity of the upstream and downstream industries, the development of regional economy as a whole are very favorable.