Transformation and upgrading of fastener industry to enhance the international competitiveness of fasteners in China

The key to the lack of competitiveness of Chinese-made fasteners in the international market lies in the lack of industrial brands. Some of the “old names” that have more than ten or even thirty years are in poor condition. One important reason is that they have not been able to form industrial scale.

"Although the competitive advantages of China's fasteners are being weakened, the comparative advantages of China's fasteners are still there. China's fasteners have to go from a world manufacturing country to a big brand country. Restricting the bottleneck and breakthrough of the development of China's fastener brand, we can find a shortcut that stands out in the competition and reshape the economic growth model of China's fasteners."

The key factor influencing the value of a country’s brand is the overall image of a country’s “industrial brand” and the degree of brand industrialization. Some brand products in the United States, Japan, the European Union and other countries and regions are all strong brands. In the medium and long term, China still needs to start domestic demand, especially consumer demand, change the mode of economic growth, and change the growth mode that the export-led promotion has in the past. In the face of the huge domestic domestic market that is being opened up, opportunities and challenges coexist, and the production of fasteners in China is from "Made in China" to "Created in China." Brand is the key.

If a fastener company does not innovate, it will not be able to develop sustainable development capabilities. Innovation does not have the system of private, joint venture or state-owned enterprises. As a company, it should be based on innovation. This is the most basic activity for cultivating long-term sustainable development capabilities.

Why joint ventures want joint ventures, the key is to use the resources of both parties, combining advantages. Foreign parties have technology and management resources. China also has resources, not only labor resources, but also raw material resources. After several years of development, the localization of joint ventures has reached a high proportion. Independent innovation will grow with the growth of the {TodayHot} market. The joint venture also has its own brand, which is a joint venture product.

For enterprises, independent innovation should be market-oriented and establish a brand-new independent innovation system, with special emphasis on the need for enterprises to become the main body of innovation investment, innovation activities and application of innovation results.

In the past decade or so, the central government has formulated many policies that are conducive to the development of enterprises. However, in the process of implementation, it often varies from enterprise to enterprise, from the collection of taxes and fees to the approval of imported equipment, to the support of financial capital. The income tax rate for joint ventures is only 15%, while the number of state-owned private enterprises that produce domestic brands is 33%. With the current level of China's fastener industry, it is unrealistic to compete with multinational companies. Joint ventures, private enterprises and state-owned enterprises should stand on the same starting line.

Government departments must support and care about the fastener industry. First of all, in the direction of industrial policy, high-strength, high-precision fasteners and non-standard shaped parts should be the key development products. Inclusion in the national development plan, at the same time to provide high-strength, high-precision fastening companies have been assessed and included in technological progress in the enterprise, to give a certain amount of tax deductions (mainly income tax), due to the high demand for equipment and technology of such enterprises, Therefore, the investment is large and the management level is high. Therefore, the technical reform project should be given funds, financing facilities and interest subsidies. The tariffs for import reconciliation are zero, and the production equipments in various countries enjoy the policy of 30% tax rebate, etc. to further narrow the gap with the international level.

High-strength, high-precision fasteners and non-standard fasteners should be included in state-level new products (can not belittle the role of small screws), organized and coordinated by industry associations, while giving tax relief policies, promote {HotTag} into product upgrades Replacement to replace imports.

Innovation, fairness and harmony are closely linked with the development of China's fastener industry. "Science and technology are the primary productive forces, and independent innovation is the primary competitiveness." Today, independent innovation is becoming the strongest voice of the era. The turning point of China's fastener industry is approaching, and how to implement safe steering without deviating from the main channel is an issue that every fastener must seriously consider.

It can be said that in the past few years, China's fastener industry has gathered a certain amount of capabilities. The investment of capital and manpower is, of course, an important factor in accelerating the construction of an innovative industry. The key to this is the innovation mechanism that combines science and technology with economy. The extensive growth mode of the fastener industry has met with severe challenges. The resource elements are in short supply, environmental pressures have increased, and low-cost competition has become more and more difficult for the quantitative expansion and development.

The lack of an innovation system is a permanent pain in China's fastener industry. There is nothing wrong with it. Independent innovation has become the consensus of all sectors of society. This is not only because of the call of the Central Government, but also because of strong public pressure. With the increasingly fierce competition in the market, the days of “selling a ton of screws to earn only one bundle of green onions” are increasingly approaching the fastener industry. Independent innovation has become an inevitable way for companies to reduce costs and obtain profits.

Taking China's automotive fasteners as an example, due to the lack of independent intellectual property rights and brands, the Chinese market has become a big meal for the world's fastener giants. Today, passenger cars and imported cars account for more than 80% of China's auto consumption market. The well-known brands of these high-end vehicles are assembled on the domestic production line, and more than 60% of the fasteners on the vehicle are imported. It is understood that China's export of ordinary standard parts in the international market only sells 1200 US dollars / ton, while imports of some high-grade fasteners have to 8000-10500 US dollars / ton, a difference of 7-8 times. In the imported automobile models, foreign investors invested 30%, owned about 50% of the shares, but took away 70% of the profits, while Chinese companies can only get 30% of profits. This is of course related to the fact that the intellectual property rights of these fastener products belong to the foreign party, but there are also some objective reasons that there are indeed certain problems in the stability of our fastener products and manufacturing quality, as well as brand factors.

The fastener industry must make an accurate understanding of the current production environment of our company. What kind of production environment are we in? Things that could not be done 10 or 5 years ago. Now we can do it by opening our minds and letting our eyes open. The fastener industry in Japan, South Korea, and China Taiwan has been healthy for only about 30 years. China's fasteners are in a rare period of historical opportunity. They should have a strong sense of mission and a sense of crisis. They must not be satisfied with the little achievements they have achieved.