There is a big gap between China's tool companies and advanced multinational tool companies in terms of capital, technology, equipment, and management level. However, I believe that at least two major advantages are the precious conditions for the development of the Chinese tool industry. That is: natural resources and human resources. Unfortunately, these two kinds of resources have not been well utilized and grasped and have lost many opportunities for development.
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China's resources for cutting tool materials are unique. In 2003, China produced 60,000 tons of high-speed steel and 1.2 million tons of cemented carbide, which accounted for about 40% of the world total. However, the sales of knives in the same year in China were less than 6% of global tool sales. This huge contrast is shocking. Explain that the added value of our tool products is too low.
In terms of human resources, China's cutting tool industry has trained a well-qualified workforce for decades. Although affected by the level of China's industrial infrastructure, some of the knowledge is old and needs to be updated and improved. But this step is not difficult to catch up. Many foreign companies have hired a large number of personnel from China's cutting tool companies. After training, they can quickly adapt to the production, marketing and service of modern cutting tools. They have performed very well and have demonstrated the capabilities of this team. However, due to the long-term production of standard products by cutting tool companies in China, it is a pity that the development potential and service potential of this team are wasted.
Then, how can we give full play to China's resources and manpower advantages and push the development of the cutting tool industry to a new level? Experts believe that we must first start with changing concepts and strengthening services. The tool companies must completely lose the stereotyped habits that have been cultivated for decades, have old habits of selling, and give top priority to meeting the needs of the manufacturing industry. Having established such a guiding ideology and development policy, even without a large amount of modern equipment, it can produce good products that users welcome. With this kind of guiding ideology, waste of resources and the squandering of wasteful talents, they will be greatly reduced. In recent years, China's cutting tool industry has begun to emerge a number of technology-based private enterprises. This is how it has developed. Its growth rate exceeds the strength of state-owned enterprises and deserves attention.
The tool industry needs to solve modern issues, strengthen service awareness and improve service levels. The urgency is far more than the improvement of equipment. We have had a lot of hard lessons. Some companies have introduced advanced foreign equipment at a great price, but the old concept has not changed and standard cutters are still produced. The result is not welcome by the market.
Today's developed country's modern tool manufacturing industry has undergone mergers, reorganizations, and enhancements since the 1980s, showing a high starting point, large investment, large-scale, internationalized features, and a trend of centralization. The 10 largest multinational tool groups hold two-thirds of the international tool market. Compared with our country's cutting tool companies, there is a big gap between product development capabilities, process development capabilities, equipment development capabilities, and marketing service levels. It must be admitted that this gap cannot be caught overnight. After all, the cutting tool industry is a traditional industry, and it is different from the law of high-tech development. Many technologies and experiences rely on a long-term accumulation process.
In recent years, China's cutting tool industry has begun to notice the problem of accurately positioning and choosing a reasonable development model based on its own conditions. Many large and medium-sized enterprises have given up their large-scale and small-scale development models and have begun to present their own characteristics. This is a very welcome phenomenon. However, the proportion of featured products and services is still not large enough, and the transition speed is not fast enough. It shows that the sense of urgency is not strong enough to completely shake off the influence of the traditional system, so the pace of reform must be accelerated.
In the development of city vehicles, sometimes this effect is still very serious. It is necessary for government and enterprises to communicate and reach consensus. The government should come forward to solve this problem. For example, the inferior and low-priced products that have hindered the healthy development of the cutting tool industry have for years been vicious competition and unfair investment orientation. Both of these issues are directly related to government actions.