Hardware and electromechanical industry to take care of crisis exports

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. However, the financial turmoil of 2008-2009 was like a heavy blow to many hardware and electromechanical companies, giving the electromechanical people another chance to think: the high-growth of the **** is difficult to withstand the industrial crisis, so how can we be in the market? Is the competition invincible? The author believes that in order to answer this question, we must understand the world economic and political development trends and trends in the development of the industry, as well as new economic forms, such as the impact of electronic commerce on the electromechanical industry.

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. The cost components are composed of raw materials, equipment, energy, manpower, land, capital, environment, exchange rate, 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.

Energy China is formulating a new resource taxation system. With the relative reduction in China’s energy resources, the pressure on energy prices has also continued to increase. For example, the price of oil is already about twice that of the United States, and the new resource tax system is bound to increase Pollution, taxation of high-energy-consuming companies, and this part of the tax will eventually reflect the cost up.

Environment Under the guidance of the concept of establishing an ecologically harmonious society, the government has been increasingly demanding environmental protection. The previous method of economic growth at the expense of environmental pollution has become a thing of the past. Strict environmental regulations will inevitably lead to waste water and waste disposal costs. Increasing production of products that comply with environmental protection requirements not only requires an increase in the level of quality control, but also means increased investment in R&D and environmental protection equipment and testing equipment. Companies that do not attach importance to this aspect may encounter environmental conditions like Zijin Mining. The disaster eventually led to the decline of corporate reputation and the cost of huge pollution control.

Since so many factors lead to price increases, 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.

Why do Chinese people like to go to the West to buy goods? Because the western technology is good, the product quality is good. Technology is a very important aspect of product competitiveness. Intensify innovation and establish core technologies to maintain competitiveness. Everyone knows that Huawei has earned the top spot for the top 100 companies in China's electronics industry for many years. What are the reasons? Because Huawei has its own core technology and has a core R&D team of 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 level than other companies. Profit rate.

Information The twenty-first world is the 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 products. 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. With the further development of online marketing, 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.

Raw materials The non-renewability of the earth's resources has caused raw materials to gradually deplete, such as steel. Because 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, leading directly to costs. Gradually transformed into steel and final products, and this trend will continue.

Human resources have always been the core of China’s competitiveness, but the flashes and migrant shortages at the beginning of 2010 have already broken this myth. With the introduction of family planning and continuously rising price levels over the past 30 years, the increase in wages has increased. The human resources market has become the main theme in the past few years. 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.

The link between exchange rate *** and US dollar has promoted the growth of China's exports. On the one hand, it has created a favorable 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, the *** relocked to the US dollar, but with the recovery of the world economy, 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%.