Fasteners face severe challenges, enterprises must have sufficient psychological preparation

In the second half of 2011, due to factors such as inflation, sharp decline in the growth rate of key industries, tight monetary conditions, and economic downturn in Europe and America, China's fastener industry was greatly impacted after the steady development in the first half of the year.

The 'Report on China's Fastener Industry' pointed out that 2010 is the closing year of China's Eleventh Five-Year Plan. Fastener companies rely on emerging industries under the guidance of the 'Implementation Plan for the Revitalization of the Mechanical Infrastructure Industry' The domestic market has emerged from the trough in 2009, has been rising steadily, and has maintained a healthy and stable development. But overall, China's fastener market still has major weaknesses, such as many and fragmented micro-enterprises, low added value of products, overcapacity, dumping of reserve prices, irregular markets, and weak corporate competitiveness.

In the face of severe tests and challenges, relevant people emphasized that enterprises in the fastener industry must have sufficient knowledge and psychological preparation. First of all, we must intensify restructuring, acquisitions and strengthen adjustments in the difficult situation. Closely rely on the industry and vigorously develop high-performance, high-strength, and high-value-added products. Give full play to the advantages of enterprises' independent innovation, vigorously develop information technology and high-tech applications, and improve manufacturing levels and labor productivity. Secondly, we must base ourselves on the domestic market, promote dislocation competition, standardize market order, oppose and stop the dumping of the reserve price, and constantly adjust product prices in practice, so that the price of fastener products can adapt to the production cost, adapt to the international market, and brand Adapt. Once again, we must accelerate the return of funds, strictly control the scale of loans and investment, and pay more attention to the control of cash flow. Pay attention to the changes in the European and American markets, actively respond to various trade protection signs, and stabilize the export market.