Fasteners: Changing Manufacturing Properties to Improve Product Differentiation

To increase the technical level of fastener companies, we must start with equipment improvements and technological improvements to produce high-end fasteners and replace imported products. I think that after various technical performances have reached the level of imported products, domestic companies will not be close to taking a long distance to import. This is a favorable trend for fastener companies in the current situation.

The world market is vast and diverse. The traditional advanced economies such as the United States, Europe, and Japan have caused economic contraction due to the subprime crisis, and the potential for expansion has been limited. We must attach importance to emerging markets while safeguarding market share. The demand for fasteners is omnipresent. From aircrafts to automobiles to furniture and appliances, there is a vast demand. We need to segment markets and accurately position them. In Central and South America, Southeast Asia, Africa, the Middle East, and the former Soviet Union, these regions have a small share of China's export market. We can focus our attention on it, expand the market, and widen the fastener export road. Through hard work, it may appear that the west is not on the east side. Bright situation.

A benign development of a fastener company must establish the company’s core competitiveness and cultivate the internal driving force of the industry. However, at present, most fastener companies in China lack of innovation ability, lack of advanced technology lacking intellectual property rights, and lack of technical talent. The production team is not stable. The front-line employees are not sufficiently trained and have large liquidity. The daily production of enterprises is poor at coping with complicated low-end or lower-end products, passive production modes and unstable market environment. It is undeniable that the existence of endogenous defects, such as scarcity of human resources, lack of core technologies, and lack of market expansion, will certainly have a negative impact on the development of the industry.

The growth rate of fasteners in China is 5%-10%, and the demand for fasteners in 2008 was 3.13 million tons, an increase of 9.5% year-on-year. Among them, the automotive industry is the largest user, followed by the maintenance of industrial and construction industries, and then electronics. industry. Recently, in order to stimulate domestic demand, the state has introduced many policies to support manufacturing. In the government's 4 trillion yuan investment plan, the focus is on railways, highways, airports, power grids, and affordable housing infrastructure. The most direct benefit is to be equipped. Manufacturing, which will greatly stimulate the demand for fasteners. In particular, the demand for high-strength fasteners with 16-30mm specifications ≥10.9 will increase rapidly. In addition, the development of the aviation industry has also played a strong supporting role in the demand for fasteners. For example, the Boeing Company plans to add 3,400 new aircraft in the future. This data will bring new development and demand opportunities to the fastener industry.

In the face of the internationally grim situation, the state adopts active fiscal measures to increase investment and stimulate domestic demand. The investment of RMB 4 trillion will promote the development of our society and economy. In particular, large investments in railways and infrastructure will bring steel, infrastructure, and The development of machinery and other related industries has made up for the decline in the share of exports. In the four trillion investment, fasteners will also occupy a certain market share. The fastener industry has accelerated the integration, improved the company's comprehensive capabilities, and improved product quality. When it pulls domestic demand, it provides high-quality products to make up for or recover part of the EU's anti-dumping product loss.

The advantage of fastener industry malls in changing market speeds and exchanging capital for costs has weakened. In the past development process, they mainly had cost advantages and lacked the advantages of core competitiveness, which was a low-cost, low-tech extensional expansion model; Only the ability to create price differences, but lack the ability to create product differentiation. This situation determines the manufacturing attributes of the fastener industry, rather than creating attributes. Large but not strong lack of core competitiveness of production methods In the increasingly fierce market competition and response to the economic development of the transformation of the situation, many companies are unsustainable, fastener companies have entered the bottleneck period of development, facing new challenges.

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