How to develop high-end advanced knives in China

Abstract The overall market of China's tool industry is developing rapidly, but there are many low-end products, and there is a phenomenon of using low-cost labor to produce inferior products to profiteering at the expense of the environment. The low-end market is in chaos. During the 12th Five-Year Plan period, China's tool industry will show fierce competition from the competition...
China's tool industry's overall market is developing rapidly, but there are many low-end products, and there is a phenomenon of using low-cost labor to produce inferior products to profiteering at the expense of the environment. The low-end market is in chaos. During the 12th Five-Year Plan period, China's tool industry will be in a state of fierce competition.

In recent years, although China's tool industry has not experienced much development, it is far behind the development of the machine tool industry. Most of the highly efficient advanced tools used in production are imported from abroad (including tools produced by foreign-owned enterprises in China). We also export a lot of knives now, but mainly the standard knives that are cheap and low-end. In 2004, China produced about 2.5 billion pieces of tools, of which 2 billion were cheap low-end tools (most of which were exported). In the next few years, the export is still basically low-end tools. Medium-sized twist drills in the US market cost about $10 each, while the low-end twist drills made in China on the market cost only $1 and are used only as hand tools. China now has the world's number one automobile industry, but the high-efficiency production line imported from abroad by the automobile industry, the tools 80-90 used are still imported tools (including domestic foreign-invested enterprises). At present, China's tool production and sales situation is that high-end advanced tool products mainly rely on imports from abroad, while low-end tool products have a vicious expansion (most exports), this situation must be changed as soon as possible.

China's machinery manufacturing industry uses a large number of standard tools, while developed countries use a large number of high-efficiency advanced tools, resulting in China's processing efficiency is far lower than abroad. China's tool factories still produce a large number of traditional standard knives. Some small tool factories also produce a large number of low-end knives. According to statistics, China consumes 40% of the world's tool materials, but its sales revenue only accounts for 12-15 of the world's tool industry. The gross profit margin is around 40, while the profit of China's tool factories is very low, and some tool factories are still losing money.

At present, China's tool factories mainly produce traditional standard tools. From the perspective of the technological development trend of the machinery manufacturing industry, the proportion of high-efficiency CNC machine tools in China's factories will increase year by year, and the demand for high-efficiency and advanced tools will increase rapidly, and the demand for traditional standard tools will decrease year by year. Also. As the labor cost in China increases, the price advantage of the standard tool export in the middle and low gear will gradually lose, and the export volume will surely decrease. If the tool companies still produce traditional standard tools, the sales volume will gradually be reduced. Some private small tool factories produce a large number of traditional standard tools. The large tool factories gradually lose this part of the market because of the high cost and the inability to compete. There will be no future. Therefore, China's tool industry must change its concept, vigorously develop the production of high-efficiency and advanced knives, replace domestic products with domestically efficient and advanced knives, recapture the market occupied by imported knives, and pay attention to after-sales production services. Only in this way can China's tool enterprises With the development prospects, China’s tool industry can be revitalized.

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