What's the major trends in the development of Chinese sheet metal industry in the future?

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Update time : 2022-11-19 11:02:41

4 Major trends in the development of Chinese sheet metal industry in the future.

The sheet metal industry in China will continue the momentum of structural adjustment, but at the same time there will be some bright spots. The polarization of sheet metal companies will intensify. Some companies that do not adapt to market competition will withdraw from market competition through different channels, and sheet metal giants will gradually surface.

1. China's position as a global sheet metal manufacturing center will be further consolidated

With the acceleration of China's integration into the global economic environment and the rapid rise of its economic strength, China has become the most dynamic economic region in the world. China has relatively complete economic facilities, relatively mature industrial development and low labor costs. It has the comparative advantage of becoming a global sheet metal manufacturing center, and the sheet metal manufacturing industry has obvious export-oriented development characteristics.

The strengthening of the central position is firstly reflected in the overall growth of the export of hardware products in recent years: the export growth rate of the main sheet metal products is higher than the growth rate of the output, higher than the growth rate of the domestic market sales; the main sheet metal products are in full bloom, Not only electric tools, hand tools, construction hardware products, these traditional major export products have a high growth rate, but also the export growth rate of kitchen appliances and bathroom products, which had a small export proportion in the past, was also very obvious. The huge market and central position will further attract sheet metal multinational companies to transfer their manufacturing centers to China.

2. Cooperation between enterprises will be significantly strengthened

In the environment of global competition, in order to obtain a favorable competitive position and improve competitiveness, industrial capital is another theme of industry operation. From the perspective of capital, the current main feature is that the expansion of capital is intensifying. From the perspective of competitive behavior, the cooperation of resource sharing among enterprises is increasing.

3. The polarization of enterprises will further intensify

The next few years will be a period of high-speed shocks in the sheet metal industry. The direct consequence of this high-speed shock is to expand the trend of polarization in the current sheet metal kitchen and bathroom brand camp. It is expected that there will not be so many sheet metal companies that can really survive in the market in the next few years. However, this high-speed shock in the sheet metal industry will bring huge opportunities, and the result of the shock will make the market operation more rational.

4. Competition among sales channels is becoming increasingly fierce

Due to the oversupply of domestic sheet metal kitchen and bathroom products and the increasing pressure on quality, sales channels have become one of the key competitive factors, and the competition for channels has become increasingly fierce. On the one hand, kitchen appliance manufacturers have strengthened their control over retail terminals, striving to reduce sales links, save sales costs, make sales channels develop in a professional direction, and enterprise sales models develop in a direction that can adapt to various markets at the same time. On the other hand, the trend of the development of the sales industry has made the status of large home appliance chain stores continue to rise, and their ability to control the industry has increased, participating in and triggering price competition that was previously dominated by manufacturers. Relying on their broad market coverage, procurement scale and cost advantages, large retailers will increasingly control production companies in terms of product pricing and payment delivery.

Market competition will shift to high-quality, high-tech products.

With the deepening of competition, the profit margins at all stages of the sheet metal industry chain are being compressed, and the room for price reduction is decreasing day by day. More and more companies realize that price competition alone cannot establish core competitiveness and is not the direction of long-term development, so they are trying to explore new development paths. Many hardware companies have increased their technical investment, developed new products with high-tech content, and used product differentiation as a long-term plan for enterprise development to seek new market demand and establish new economic growth points (such as small household appliances and other similar industries) to achieve sustainable development of the enterprise.