In recent years, Chinese output of many hardware products is the first in the world; a lot of export varieties account for a very large share in the global market, and its influence on the world's hardware products industry is increasing. However, since the fourth quarter of 2008, the global financial crisis had made tremendous impact on export-oriented enterprises, many export orders evaporated and even some export contracts which had paid deposit also were returned under various pretexts. In this process, the impact on China's main exported hardware products such as
hex bolt tools, architectural hardware, locks, scissors, zippers was the most obvious. In the past 2010, with the international economic situation recovering, China's
pvc fitting exportation also increased. But in 2011, Chinese
cip products will not only have hard-won opportunities, but also difficult challenges.
Challenges:
1. The raw material costs are increasing.
Recently, the raw material price of
blow molding machine industry has shown a significant rise or rising expectations: the copper price was soaring since last year; the protracted iron ore trade negotiations is likely to gave birth to "Crazy Stone", which will lead to the steel prices increasing; aluminum, zinc, and various non-ferrous
bag making machine also has strong markup expectations; the price of oil and other fuel also continue to rise... the overall prices increase of raw materials will significantly increase the
plastic valve industry's cost pressures, and the profit margins will be further compressed.
2. The labor demand gap frequently appears in hardware companies.
The labor demand gap began in early 2010 lasted to the end of the year, and it is likely to continue in 2011. Provinces and cities have adjusted the minimum wage one after another, which leads to the wages of
garden tools company workers increase. Even so, some companies still unable to retain people, employees' job-hopping is common.
3. RMB appreciation and inflation has increased the pressure of exporting
blow molding machine products.
In recent days, RMB suffered great appreciation pressures, which has resulted the competitiveness of
garden tools products exportation decreased in international market. Many hardware industry's foreign trade staff reflected that now their companies don't allow to accept long-term
air tools orders, especially the one exported to Europe and America, but emphasized to accept more short-term orders, because they are afraid of loss after exchange rate settlement and profit margins reduce. If things continue in this way, hardware manufacturers will face serious survival challenges.
Opportunities:
1. The conventional tariff preference of
tools products export tax will continue.
Since January 1, 2010, China further adjusted the import and export customs tariffs, in this tax adjustments, China began to implement the conventional tariff with ASEAN, Chile, Pakistan, New Zealand and other countries, and these countries will also implement corresponding conventional tariff with China in 2010 according to relevant agreements. The implementation of conventional tariff will bring benefit for many
power tools industries and import and export
power tools enterprises including hardware products.
2. The world economy will continue to recover.
In 2011, the world economy will continue to recover, and international market demand will last out, the demand of South Asia, Eastern Europe, Russia, the Middle East and other emerging markets is growing rapidly, but EU and American market's local enterprises, which are the export destinations of Chinese traditional hardware products, not yet fully recovered. China hardware product enterprises are expected to expand the share of exports.
Above provided by
SelectChina.com, and find more information on
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