Endogenous Development Proposition of Hardware Tools Enterprises

Transformation and upgrading is a development proposition of endogenous hardware tools.

National Base Drives Industry Transformation and Upgrade

Earlier this month, the city officially obtained the title of Jiande China Tool Hardware Industry Co., Ltd., which indicates that the city's hardware and tools industry has become a national industrial base. Feng Jinshui, chairman of Yuanfeng Tools, which is known as the godfather of the Jiande hardware tool industry, explained to the author the significance behind this incident. He believes that this state-level industrial base, Jiande, will inevitably become the fulcrum of the city's hardware tool industry transformation and upgrading.

According to the author's understanding, the city's hardware and tools industry originated in the 1970s. Through more than 40 years of development, the city has formed a large-scale, massive economy. In particular, Gantan Township, a key township in the production of hardware tools, currently has more than 200 hardware and tools companies, including 5 million yuan enterprises, and basically formed a number of key enterprises including Yuanfeng Tools, Feiling Tools, and Universal Tools. As a leader, the industry is more supporting industrial clusters. According to a statistical data, the market share of hardware screwdrivers produced in the city is more than 25%, accounting for more than 40% of the market share in the country.

The final settlement of the national industrial base will not only expand the popularity of Jiande’s hardware tools, but also help the National Hardware Association’s “home” to create national-level R&D centers, information centers, testing centers, and training facilities. Centers and logistics centers achieve greater results.

I remember that at the base's acceptance meeting on the day, Zhang Dongli, chairman of the China Hardware Products Association, believes that Jiande, especially the hardware screwdriver industry in Gantan Town, has formed a large industrial cluster with a complete industrial chain and is absolutely leading the country. With the help of the China Tool Hardware (Spinner) industrial base, Jiande’s hardware driving tool industry will surely be able to move on to the connotation-based development path, increase R&D and innovation, enhance product quality, and become a The world has a regional brand with a certain reputation and reputation.

Transformation and upgrade become internal requirements of the enterprise

It is a long-term and arduous process for the traditional industries to achieve transformation and upgrading and become stronger and bigger. At present, the hardware tool companies in Gantan are actively exploring a development path that is suitable for their own reality and conducive to the transformation and upgrading of the industry. This transformation and upgrading has become a strategic choice for the endogenous development of many enterprises. Among them, Yuanfeng Tools, Universal Tools and Spinners are typical.

The transformation and upgrading of Universal Tools began in 2007. In May of that year, Ye Binghua, an uneasy state, stepped ahead and selected the water-atomized iron powder project, which is now fully mature in technology, from five or six projects. The product is mainly used in equipment manufacturing industries such as automobiles, ships, and welding electrodes. The first phase of the project was started in June 2007 and was put into operation in June 2008. The second phase took only a short period of seven months and was officially put into production at the beginning of this year. It is estimated that after the second phase of production, it will achieve an annual production capacity of 10,000 tons, and the output value will exceed 80 million yuan. What makes Ye Binghua more gratified is that this iron powder is basically in short supply. Every day, customers come to urge the product.

Ye Binghua told the author that the transformation and upgrading of Universal Tools includes two paths. First, the industry is transformed from traditional hardware tools. Iron powder is sold domestically, and hardware tools are foreign trade. The internal and external modes will further optimize the company's sales structure; the second is upgrading, focusing on hardware tools. Since 2007, Universal Tools has invested heavily in purchasing Taiwan's complete production equipment, and has completely transformed the handles of the company's kits. Accompanying each other is that the upgrading of products has brought about an increase in the soft power of enterprise product development and patents.

In contrast, the layout of Yuanfeng Tools in terms of transformation and upgrading is even more generous. An annual production of 300 million high-end car sleeve projects is brewing. According to the company's chairman Feng Jinshui, the project was jointly established by Yuanfeng Tools, Germany's MANNESMANN Company and Jiangsu Guotai International Group Machinery Import & Export Co., Ltd. Among them, Yuanfeng Tools is one of the largest hardware tool manufacturers in China. MANNESMANN is the largest importer in Germany, and Jiangsu Cathay Pacific is the leading company in the world in terms of operating international trade. The three companies can jointly combine production, supply and sales. And to maximize product profits. According to calculations, the total investment of the project is nearly 200 million yuan, and after the completion of the project, an annual sales value of 800 million yuan can be realized.

Feng Jinshui told the author that the main market for socket wrenches and assembly products is in the auto parts and installation and repair industry, and the global demand is in excess of 10 billion. Moreover, with the continuous development of the automotive industry, its usage is increasing at a rate of 20% every year. Therefore, the market outlook is very promising.

In addition, the City Spinner Company is also negotiating and cooperating with foreign companies in order to further enhance the existing company's technology and expand production capacity.

As the former Municipal Committee of the Communist Party of China (Chen Chunlei) said when investigating the hardware tool industry in Chentan, the transformation and upgrading should become the most important endogenous development proposition in the enterprise. For the hardware tool industry, achieving effective integration of internal resources, accelerating the research and development of new products, and building a platform for logistics formats are all due to the transformation and upgrading of enterprises.