In recent years, the output of many hardware products in China ranks first in the world. Many export varieties have a very large share in the global market, and the impact on the world hardware industry is growing. However, since the fourth quarter of 2008, the global financial crisis has had a huge impact on export-oriented enterprises. Many export orders have “evaporated†and even some export contracts that have been paid have been returned under various excuses. In this process, China's major hardware products export tool hardware, construction hardware, locks, scissors, zippers, etc. are most affected. In the past 2010, with the recovery of the international economic situation, China's exports of hardware products have also seen a recovery. In 2011, the export of Chinese hardware products was both a rare opportunity and a difficult challenge.
opportunity:
1. The tariff rate concessions for the export tariffs of hardware products will continue
Since January 1, 2010, China has further adjusted the import and export tariffs. In this tax rate adjustment, China has begun to implement the treaty rates with ASEAN, Chile, Pakistan, New Zealand and other countries. The above countries will also In 2010, the corresponding agreement tax rate was applied to China's commodities. The implementation of the agreed tax rate will benefit a number of industries including import and export of hardware products.
2. The world economy continues to recover
In 2011, the world economy will continue to “recoverâ€, international market demand will continue, and demand in emerging markets such as South Asia, Eastern Europe, Russia, and the Middle East will grow rapidly, while local hardware companies exporting destinations in the EU and US markets have not fully recovered. China's hardware products companies are expected to expand their export share.
challenge:
1. The rising cost of raw materials for hardware products
Recently, raw materials in the hardware industry have seen obvious rises or rising expectations: copper prices have soared since last year; long-lasting iron ore negotiations are likely to lead to “crazy stonesâ€, which in turn lead to skyrocketing steel prices; aluminum and zinc And various non-ferrous metals also have strong price hike expectations; oil and other fuel prices are also rising. The overall increase in raw materials will significantly increase the cost pressure of hardware companies, resulting in less marginal profit margins.
2, hardware products enterprises frequently meet the gap in employment demand
The employment demand gap that began in early 2010 has continued until the end of the year and is likely to continue in 2011. Various provinces and cities have adjusted the minimum wage standards one after another, resulting in higher wages for employees of hardware products enterprises. Even so, some companies still can't keep people, and employee turnover is more common.
3. Renminbi appreciation and inflation have greatly increased the pressure on exports of hardware products
Recently, the renminbi has suffered tremendous pressure to appreciate, resulting in a decrease in the competitiveness of export hardware products in the international market. Many foreign trade personnel of hardware products report that the company is not allowed to accept long orders, especially long-term orders exported to Europe and the United States, emphasizing more short-term orders, because the company is worried about the losses caused by exchange rate settlement and the reduction of profit margin. In the long run, the survival of hardware production enterprises will be severely challenged.
opportunity:
1. The tariff rate concessions for the export tariffs of hardware products will continue
Since January 1, 2010, China has further adjusted the import and export tariffs. In this tax rate adjustment, China has begun to implement the treaty rates with ASEAN, Chile, Pakistan, New Zealand and other countries. The above countries will also In 2010, the corresponding agreement tax rate was applied to China's commodities. The implementation of the agreed tax rate will benefit a number of industries including import and export of hardware products.
2. The world economy continues to recover
In 2011, the world economy will continue to “recoverâ€, international market demand will continue, and demand in emerging markets such as South Asia, Eastern Europe, Russia, and the Middle East will grow rapidly, while local hardware companies exporting destinations in the EU and US markets have not fully recovered. China's hardware products companies are expected to expand their export share.
challenge:
1. The rising cost of raw materials for hardware products
Recently, raw materials in the hardware industry have seen obvious rises or rising expectations: copper prices have soared since last year; long-lasting iron ore negotiations are likely to lead to “crazy stonesâ€, which in turn lead to skyrocketing steel prices; aluminum and zinc And various non-ferrous metals also have strong price hike expectations; oil and other fuel prices are also rising. The overall increase in raw materials will significantly increase the cost pressure of hardware companies, resulting in less marginal profit margins.
2, hardware products enterprises frequently meet the gap in employment demand
The employment demand gap that began in early 2010 has continued until the end of the year and is likely to continue in 2011. Various provinces and cities have adjusted the minimum wage standards one after another, resulting in higher wages for employees of hardware products enterprises. Even so, some companies still can't keep people, and employee turnover is more common.
3. Renminbi appreciation and inflation have greatly increased the pressure on exports of hardware products
Recently, the renminbi has suffered tremendous pressure to appreciate, resulting in a decrease in the competitiveness of export hardware products in the international market. Many foreign trade personnel of hardware products report that the company is not allowed to accept long orders, especially long-term orders exported to Europe and the United States, emphasizing more short-term orders, because the company is worried about the losses caused by exchange rate settlement and the reduction of profit margin. In the long run, the survival of hardware production enterprises will be severely challenged.
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