Small and medium-sized hardware companies face high cost pressure

Small and medium-sized hardware companies are facing the pressure of high costs:

(1) The rising price of raw materials 2013 was a year of rising sound. Iron ore was climbing all the way back to the international barometer, which put pressure on the hardware industry downstream of the industrial chain. Most of the hardware industry involved iron. Ore; soaring oil prices, which is a great waste of energy for the high-energy-consuming hardware industry, and also to a certain extent, affect the hardware industry logistics transportation; rare earth prices skyrocketing, resulting in the downstream lighting industry companies, wind power equipment companies Such serious losses, so that some companies diverted to "hoarding rare earth", comparable to the gold treatment.

(II) Rising Labor Costs The hardware industry is mostly labor-intensive. This requires a large number of employees to “stand in” the industry chain to maintain normal operation. However, in the age of 80’s growth into a labor force, these groups were “beloved” by their parents. Most of the young people are reluctant to engage in heavy physical labor, and the pressure of adult survival costs has led to an increase in wages in the hardware industry. Even many companies are unable to retain the high-paying talents; in some hardware companies with advanced automation processes, they are also facing “employment”. "Haunting", some skilled workers, or technical personnel, "Swords go to the horizon," also need high wages to retain, which for hardware companies, especially small and medium-sized hardware companies, is a faint pain.

(3) The continuous appreciation of the *** and the appreciation of the central bank’s interest rates are also a hurdle for foreign-oriented SMEs. For small and medium-sized hardware companies, the increase in cost would have required an increase in sales prices. For appreciation, then, only on the basis of the increase will consider the exchange rate, I am afraid that such a price increase will affect the affordability and purchasing ability of foreign companies. Moreover, due to the European debt crisis, U.S. stock prices have plummeted and the global financial environment is not so Stability, this is worse for the small and medium-sized hardware companies; the central bank raises interest rates several times a year, is the back of the small and medium-sized hardware companies also bear a heavy mountain, making it difficult to make **, so that small and medium-sized hardware companies can feel at the "layer When the waves of tumultuous tides rush to hit, small and medium-sized hardware companies are miserable, like a mermaid pursuing “prince of interest”, who struggles to support and dance on the tip of the sword to survive and dream. It's incredible to go up, actually every step is dripping blood.

How should small and medium-sized hardware companies face the "storm":

(a) Build a brand. To say a thousand and 10,000, the brand is a long-term survival of the company's spinal cord, is a company's "calcium", calcium-deficient business consequences is to have "cartilage disease", how to stand up the backbone, the brand is the key. Can withstand the test of time, most of the remaining companies are brands, such as Zhang Xiaoquan knife, Yangjiang knife and scissors.

(b) The small and medium-sized hardware companies will optimize their products, from winning by quantity to winning by quality. Many labor-intensive enterprises in China rely on OEMs to survive. A commodity only extracts a few bucks or even a few cents of its profits. The cost increases will not be able to make ends meet; there are still some companies who are trying hard to sell their goods so that they will bear the "dumping" lawsuit. It seems to be worth some losses. To embark on the ranks of high-end products, naturally increase profits and jump out of the "small profits but quick turnover" cycle.

(c) ** Open up new outlets. For example, Ningbo Fastener Industry Association and China Export Credit Insurance Corporation Ningbo Branch signed a cooperation agreement. This means that the fastener industry's exports will receive comprehensive and preferential support from the credit insurance policy. Or companies will develop in groups to help each other and use the 1N model to follow the leading companies. As long as you think, persist, believe that you can overcome difficulties. Ningbo Nanluo Jiantong Fastener Co., Ltd., located in Hengxi Town, Yinzhou District, Ningbo City, Zhejiang Province, has successfully pledged the exclusive rights of the trademark with its own well-known trademark “JT”, and obtained 3.86 million yuan of credit from Luzhou Bank. Since the introduction of the Pledge Policy for Exclusive Rights in Trademarks in Zhejiang Province, the first case of success in the use of trademark intangible assets in the region was reported.