The long-term transformation and upgrading of small and medium-sized hardware companies

In 2011, the further reduction of profits was the status quo that companies generally felt. It is reported that the current average profit of small and medium-sized hardware industry is only 5%-7%. Informed sources revealed that many companies will take orders as long as they have about 3% of profits. Four to five years ago, the company still had about 20% of its profits, which has now fallen below 10%.

Looking at China's small and medium-sized hardware companies, most of them are mainly production parts, lacking independent brands, and the homogenous competition is serious. Many companies lack bargaining power, and the pressure is facing increasing pressure in a high CPI, high cost, and high exchange rate environment. The bigger it is. If we want to stabilize our foothold in the market reshuffle and not be eliminated, we must transform and upgrade, change the existing extensive production model, and take the development path of “high standards, high quality, and high efficiency”. It can be said that industrial upgrading, independent brands, and opening up markets are the major issues that urgently need to be resolved in hardware.

Transformation and upgrading are easier said than done!

For a large number of small businesses, transformation and upgrading may seem exceptionally difficult.

It is not easy to realize industrial upgrading. From the perspective of equipment procurement alone, a large number of workshop-type enterprises are unable to do it. Many companies want to purchase new machinery and equipment to achieve automation, but due to funding issues, the ultimate can only be a vision.

In addition to financial factors, there are also human factors. Since hardware is a traditional industry, some processes must be completed manually, and upgrading may not necessarily be achieved. This aspect of the factors also caused the traditional hardware industry to rely on manpower.

Many small and medium-sized enterprises have also realized that long-term accessories and low added-value are very much like brands. But it's not easy to make a brand. For relatively strong companies, it is relatively easy to build a brand, but when these tasks fall in front of many small businesses in Danzao, it also becomes an insurmountable mountain. For a workshop-style enterprise with a profit of only tens of thousands of yuan a year, it is more than sufficient.

In the update of machinery and equipment is subject to various constraints, the road of independent brands is difficult, and small and medium-sized hardware companies hope to improve their product competitiveness and added value through industrial upgrading. It is still very long.

Hardware experts believe that the first thing a company needs to do is to ensure its own quality and the quality is not too hard. Customers do not have confidence. At the same time, to develop products that meet consumer needs, we must make our own characteristics. In addition, the improvement of oneself is also very important. Even a small workshop company needs to have a comparative advantage to find out where it is. It cannot be as extensive as before.

Although hardware companies increase industrial investment, they are actually forced to help Liangshan's frustration, but they accelerate the industrial transformation of the entire hardware industry, let 2011 become the hardware industry's "year of quality", whether it is the industry exhibition or the company itself In promoting the transformation and upgrading of the industry, great efforts have been made. Improve product quality, strengthen technological transformation, improve production efficiency, and become the only way to future business development.