Red oak is a hardwood tree that fills wild in the United States and Canada. In the Southern and Northern United States, the tree flourishes in deciduous backwoods. It is the most productive homegrown lumber in Canada, representing practically 50% of all hardwood trees. Being the essential material for red oak hardwood floors, the bounty of the red oak tree is a piece of why this ground surface alternative is so famous. KelaiWood , https://www.kelaiwoodens.com
Market Analysis: Low-end hardware production is difficult to resist
In the past few days of participating in the Canton Fair, Ying Lei and several of the company's foreign trade backbones have been conducting research in the hardware area of ​​the exhibition hall. These entrepreneurial entrepreneurs who are already 'old foreign trades' have never succumbed to the current orders: high raw material prices, rising labor costs, obvious exchange rate changes, etc., corporate profits are gradually Eroded. The troubles of raising prices are the troubles of Ying Lei, who is a leisure sports car. The rise in raw materials has a great impact on the price of export products. He said that since the cost of raw materials accounts for more than half of the company's comprehensive cost, the price increase of various materials has the greatest impact on the company. However, the number of European and American merchants in the Canton Fair has decreased, and the demand for recreational sports cars is not strong. If you raise the price again, the next reduction in orders may be a trend; if you do not raise the price, then the survival of the company will be very difficult, and even the parts companies may stop supplying. The data released by the National Bureau of Statistics recently showed that the consumer price index rose by 5.3% year-on-year in March, hitting a new high in 32 months. The PPI of the industrial production ex-factory price index rose by 7.3% year-on-year, which has been rising for eight consecutive months. Since 2011, raw materials in the hardware industry have seen significant upswings or rising expectations: copper prices have soared since last year; long-lasting iron ore negotiations are likely to lead to 'crazy stones', which in turn leads to steel prices. Soaring; aluminum, zinc and other non-ferrous metals have strong price expectations, and oil prices such as oil are also rising... Although Ying Lei, like most exhibitors, has raised prices to cope with various cost increases. However, it is still unknown whether the order can be actually put into production after the price increase. 'Foreign customers have expressed their desire to understand the price increase, because the skyrocketing prices of bulk raw materials are global, and everyone is very transparent. The key is that the degree of recovery in the European and American markets and the willingness of consumers to consume will determine whether buyers will actually place orders. 'Ying Lei said. The author learned from the foreign trade departments of Yongwu and the three places that the three participating companies all indicated that they have proposed the price increase intention to the customers in this session of the Canton Fair, and the external offer of export products has generally increased by 5%-10%. However, whether it can be accepted by the buyer after the price increase, there is no bottom in mind. The foreign trade department said that they will continue to track the progress of orders from key enterprises in the next step. The difficulty of making a profit is a rough calculation. The profit rate of the company in the first four months is only about 3%. After attending the Canton Fair, Mr. Luo was still not convinced of the report submitted by the finance department. 'I originally thought that there was 5%, and the gap is really too big. Mr. Luo manages the hand tools of gardens. Since the raw materials that have been eroded by raw materials since last year, the total monthly salary of more than 70 employees has increased by 50,000 yuan. He smiled: 'It seems to have returned to the era of selling products rather than selling raw materials. The Ministry of Commerce has publicly stated that the average profit rate of China's export enterprises in 2010 was 1.47%, and from January to February this year, the profit rate of export enterprises fell to 1.44%. Zhang Yansheng, director of the Institute of Foreign Economic Research of the National Development and Reform Commission, publicly stated that if the renminbi appreciates rapidly, 20% of SMEs may die, 20% of enterprises can basically achieve industrial upgrading through efforts, and 60% of enterprises may be on the verge of transformation. Hey. Despite this, the company's inventory turnover rate is also slowing down. Mr. Luo said that it can be turned over once every 2-3 months last year. It takes more than four months to turn around once. 'This year, foreign trade is getting harder and harder, and it is very difficult to survive in the cracks. ' Forcing the enterprise to transform and upgrade the price troubles, the difficulty of profit... For hardware companies, it is not the first time. Some experts said that the long-term response of hardware manufacturing companies is to seize the opportunity and promote transformation and upgrading in the current difficult period. 'Mainly, the products of China's hardware manufacturing enterprises are too low-end. 'China Hardware Alliance Chairman Yang Yingyuan said in the '2011 China Hardware Industry Decision-Winning Terminal Summit' that although there are tens of thousands of hardware manufacturing enterprises in China, they are mainly small and medium-sized, mostly small-scale small enterprises, with small shipments. The style is single and mostly low-end products, while the low-end products can not meet the needs of the end market. It is the main reason why the company has low profit, is not big, and has weak anti-risk ability. Yang Yingyuan pointed out that in 2010, China's automobile and ship production ranked first in the world, which greatly increased the demand for hardware tools in the automotive and marine terminal markets. This has brought development opportunities to hardware companies that are suffering from price wars and increasingly compressed profits. However, tens of thousands of hardware tool manufacturers in China have not been able to share this feast. Yongkang’s Tailong, Bao’s, Jinyun’s Jinmaxun and other enterprises seized the opportunity, or cooperated with central enterprises, or joined hands with foreign industry giants to enter the terminal industries such as automobiles, ships, chemicals, oil, high-speed rail, etc. A big market. A company certified by the classification society revealed that in recent years, the company's original main product prices have been declining, while sales have also declined, and profits have been almost eroded. But after entering the ship market in 2009, the profit was three times that of the previous one. Yang Xinfa, deputy secretary-general of China Shipbuilding Industry Association, pointed out: 'Hardware companies should keep abreast of our demand information, and many times it is a barrier caused by information asymmetry. Many of the tools used by shipyards are backward, but shipyards do not need a single tool, but need matching tools. Therefore, if you want to enter the ship terminal market, you must have matching and excellent tools. 'So, how can hardware manufacturing companies occupy this market? The current unified view of industry experts is that first, product upgrades, and second, integration of industry resources. Qian Zugen, deputy secretary-general of the Shanghai Automotive Industry Association, said that hardware manufacturing companies, especially the tool industry, have to adapt to the high threshold of automobiles and ships, implement product upgrades, and produce excellent products. In fact, the Taiwan region is also dominated by small businesses, but it has now become a strong manufacturer of hardware tools. In this regard, the Taiwan Association of Hand Tools and Trade Associations once introduced to the Yongkang inspection and exchange activities that hardware is a relatively low-end industry, but it can be done very high-end, very environmentally friendly, and the hardware companies in Taiwan are very important, no matter how small. The technical input requires high quality of the products. They suggested that Yongkang hardware manufacturing enterprises learn from the experience of Taiwan, conduct joint marketing in the industry, integrate industry superior resources, form an industrial chain, and make full use of resources within the industry to achieve a win-win situation. Most domestic hardware companies are faced with high raw materials, coupled with rising labor costs and exchange rate changes, corporate profits are gradually being eroded. Some companies directly responded by raising the quotation, but some companies said that raising prices is only a temporary measure to tide over the difficulties, and the company will then seek development through transformation and upgrading. It is necessary to innovate in technology and build a brand. Although China has more than 10 billion US dollars of hardware products exported each year, the profits earned only account for 3% of the total exports, which can be said to be minimal. Faced with the sharp rise in raw material prices, rising labor costs and changes in exchange rates, some companies are seeing their profits being eroded and helpless. How to improve the anti-risk ability of hardware manufacturing enterprises is becoming a realistic and urgent proposition. We believe that technological innovation is a prominent problem faced by hardware companies in their development. Therefore, technological innovation should be carried out in all aspects of product development and design and technological transformation. In view of the weak links in the hardware product research and development, design equipment mold technology and surface treatment technology, in addition to the enterprise itself to strengthen the main body of technological innovation, enhance the power and ability of independent innovation, but also put the focus of technological innovation and new product development In terms of increasing varieties, improving grades, increasing technology content and increasing added value. Brand is a symbol of the company and a concentrated expression of corporate culture and competitiveness. Therefore, increasing brand awareness, implementing brand strategy, and improving corporate comprehensive competitiveness also apply to hardware manufacturing enterprises. Although the hardware products manufactured by the Yongwu Industrial Cluster enjoy a good reputation in China, there are no internationally-sounding brands. Government departments and enterprises also need to re-integrate two major domestic and international market factors and resources, and develop or focus on production according to market demand. Marketable products; to further improve product quality and increase added value, we must rely on the advanced technology accumulated in the 'OEM' production process to build our own brand; we must further improve the circulation field, promote the deep integration of industry and commerce, and develop the flagship Shops and boutiques, establish online platforms and other models to create the synergy of enterprises, and thus promote the brand strategy of hardware companies. Innovative technology and brand are the only way to strengthen the country. From the experience of Japan, it is a key factor to make the industry bigger and stronger. Japan's Matsushita, Sony did not engage in electrical appliances, but they are a large consortium. After seeing the development prospects of household appliances, they all intervened, so there are now household names such as Panasonic and Sony. Fortunately, with the rapid development of Yongwuyu industrial cluster economy, a group of entrepreneurs are experiencing a round of fissile storm baptism, and research on R&D, marketing, brand and other aspects is continuing and deepening. Wang Binjian, president of China Wangli Group, proposed the concept of intellectual property alliance and called on enterprises to unite and become bigger and stronger. At present, we must first accelerate the establishment of a technological innovation system that takes enterprises as the mainstay and combines production, education and research. In the 'Twelfth Five-Year' period, we must encourage and help enterprises to strive for national and provincial key technological innovation and scientific and technological achievements industrialization projects, and implement a number of major technological innovation projects as a carrier to further promote technological innovation and brand strategy. To be a strong hardware industry. Demand for hardware tools increased This year's orders increased by about 30% compared with last year. Shipments in the first four months increased by 50% year-on-year. A CEO of a jack kit manufacturer in Yongkang West New District told the author whether it is in the global tool market or in the domestic tool market. This year's market demand is somewhat more than expected. 'This may be associated with an increase in car ownership. 'Industry analysis, the rapid increase in car ownership in the past two years, the automotive after-sales market, especially the car repair market is heating up, driving the demand for hardware tools. The data shows that the number of domestic car ownership has exceeded 35 million, of which private cars have exceeded 18 million, and new cars accounted for 60% in the last four years. Under normal circumstances, the automobile after-sales service is the largest in the market between 4 and 9 years of vehicle use. According to the internationally accepted saying, the profit generated by the aftermarket is compared with the relative pre-market, the ratio is about 7:3. In the entire automotive industry chain, the post-market profits will be at least double that of the previous market. From the perspective of sales profit, 50% to 60% of the profits in the mature foreign auto market are generated in the service sector. China's automotive after-sales service market will be a geometric blowout. According to the inference, the market size in 2011 will reach more than 350 billion yuan. The global demand for hand tools will also increase greatly. The demand for hand tools in some developed countries will increase by more than 10% per year. The China Hardware Alliance recently released a report predicting that due to the improvement of China's hardware manufacturing level and the expansion of production capacity, hardware products will continue to grow by more than 10% per year in the next five years. It is understood that power tools, hand tools, measuring tools, range finder, pneumatic tools, garden tools, desktop tools, as well as high-end sophisticated combination tools, car-mounted tools, construction hardware, kitchen appliances and other products fast. Some enterprises with independent intellectual property rights, mastering core technologies, and producing multi-variety, multi-standard and serialized products have obvious advantages.