Exploring the Future: Trends in China's Hardware Processing Industry Development
Industry analysts pointed out that China has become one of the world's major hardware processing producers, with a broad market and consumption potential. Till Oct. 2024,, at least 70% of China's hardware processing industry are private enterprises, which are the main force in China's hardware industry. On the other hand, in the international hardware market, due to the rapid development of production technology and the increase in labor cost, developed countries in Europe and the United States have transferred general products to developing countries for production, and only produce high value-added products. China has strong market potential, so it is more conducive to developing into a major hardware processing exporter.
The threshold of China hardware processing market is low, so the situation is: there are many companies and products, but the technology is too rough. Unofficial survey data show that in the past, the funds invested by our country's hardware companies in research and development were less than 1% of their turnover, and it is understood that foreign brand hardware tool companies have technology research and development funds as high as 10% to 30% of their turnover. This is also the reason why my country's hardware products frequently encounter foreign trade barriers and anti-dumping.
However, with the development of the times, people can feel the richness of hardware products. According to the "In-depth Research and Prospect Forecast Report on China's Hardware Tools Industry from 2015 to 2024", from the perspective of products and enterprises themselves, many hardware enterprises adopt the processing trade mode and have weak technological innovation capabilities, which makes China's hardware industry lack stamina and gradually lose its advantages in the competition in the international market. In the future development process, for the hardware industry that mainly relies on the comparative advantage of labor costs, while the comparative advantage is relatively weakened, it will increasingly need to rely on enhancing competitive advantages to maintain and enhance the international competitiveness of the industry. At present, my country has formed three major hardware industry zones in the Pearl River Delta, the Yangtze River Delta and the Jiaodong Peninsula, and hardware industry clusters such as Yongkang, Zhejiang, Xiaolan, Zhongshan, and Qidong, Jiangsu have emerged.
After more than ten years of accumulation and steady improvement, China hardware industry is largest output in the world, and its exports are growing steadily every year. Among them, the largest export amount is tool products. The countries with the largest export amount are the United States, Japan, Europe, and South Korea. my country's hardware industry's annual exports are growing at a rate of about 8%. Due to the improvement of China's hardware manufacturing level and the expansion of production capacity, China's hardware products will continue to maintain a steady growth of more than 10% per year in the next few years.
It can be seen that China has a rich variety of hardware products that meet the needs of the world market. At the same time, China is also a large hardware consumption market, which has attracted the attention of hardware peers around the world. The future development of hardware will be better and better.