Hardware and electromechanical industry need to pay attention to seven major points to find out the crisis exit

After China's accession to the WTO in 2003, the Chinese mechanical and electrical industry entered a fast track, and its investment and export both flourished and reached new heights. The financial turmoil of 2008-2009 was like a heavy blow to many hardware and electromechanical companies, giving the majority of electromechanical people a chance to think again. The high-growth **** can hardly withstand the industrial crisis, so how can it be neutral in the market? Invincible? To answer this question, it is necessary to understand the world economic and political development trends and trends in the development of the industry, as well as new economic patterns, such as the impact of electronic commerce on the electromechanical industry.

Energy: China is developing a new resource tax system. With the relative reduction in China's energy resources, the pressure on energy prices continues to increase. The new resource tax system will inevitably increase the taxation of high-pollution and high-energy-consuming enterprises, and this part of the tax burden will eventually reflect the cost.

Environment: Producing products that meet environmental requirements requires not only an increase in the level of quality control but also an increase in investment in R&D and environmental equipment and testing equipment. Enterprises that do not attach importance to this aspect may experience environmental disasters like Zijin Mining. Ultimately led to the decline of corporate reputation and the cost of huge pollution control. Under the guidance of the concept of establishing an ecologically harmonious society, the government has become more and more demanding on environmental protection. In the past, the way of economic growth at the expense of the environment has become a thing of the past. Strict environmental regulations will inevitably lead to the increase in the cost of sewage and waste treatment. Big. Since so many factors have caused prices to rise, in the near future, the price competitiveness of China's electromechanical products will sharply decline. How can we ensure that products are competitive in the international market? In fact, in the composition of costs, we still have three factors that are not considered, that is, technology, information, and supply chain.

Technology: There is a core R&D team with tens of thousands of people. Although overall sales are not high for certain companies, the establishment of technology maintains Huawei’s product competitiveness and allows Huawei to achieve a higher profit margin than other companies. Technology is a very important aspect of product competitiveness. Intensify innovation and establish core technologies to maintain competitiveness. As we all know, Huawei has won the top spot for the top 100 companies in China's electronics industry for many years.

Information: The professional e-commerce b2b platform has received the attention of the industry. It has become a paradigm for the integration of resources in the electromechanical industry and horizontal connectivity, and has achieved very good results. The twenty-first world is an information society. The collection, sorting, extraction, and operation of information have become catalysts for enhancing the value of products. The rise of e-commerce has witnessed the importance of information for business operations. It has established a global platform for Chinese goods. On this platform, we compete fairly, and we have no fraud, only quality and price, and who have the information , whoever has mastered the customer, has mastered the initiative.

Raw materials: As iron ore is in the hands of a few oligarchs like Rio Tinto and BHP Billiton, the price of iron ore has risen steadily over the past few years, which has directly led to the gradual transition of costs to steel and final products. The trend will continue. The non-renewable nature of the earth's resources has gradually dried up raw materials.

Human resources: Human resources have always been at the heart of China’s competitiveness, but the flash floods and migrant shortages at the beginning of 2010 have already broken this myth. With family planning implemented for more than 30 years and rising prices, wages have increased. In recent years, the human resources market has become the main theme. According to the national plan, it is expected that during the 12th Five-Year Plan, the wages of workers will double, which means that the human cost will also double.

Exchange Rate: The link between the US dollar and the US dollar has boosted the growth of China's exports. On the one hand, it has created a good trading environment for China and has also accumulated a huge trade surplus. This has also brought pressure on China's exchange rate reform. Since the exchange rate reform was launched in 2005, the exchange rate of the *** against the US dollar has risen by more than 20%. Although in the course of the economic crisis in 2009, *** relocked to the US dollar, but with the global economy picking up, the *** exchange rate has become The focus of attention in Western countries, under heavy pressure, China in September 2010 to restart the process of appreciation of the ***, is expected in the next few years, *** will appreciate more than 20%.

The cost components include raw materials, equipment, energy, manpower, land, capital, environment, exchange rates, technology, information, and supply chain. If these advantageous resources gradually lose their competitiveness, the electromechanical industry must take precautions and figure out the crisis exports. Why does China's mechanical and electrical products have a greater competitive advantage over other countries' mechanical and electrical products? This is mainly due to the low cost advantage.