The hardware industry plays a crucial role in the sanitary ware sector, with faucets being one of the most commonly used products in daily life. Just like how some fragile birds cannot survive during a storm, while Gorky’s penguin shouts, “Let the storm come more violently!†The survival of the fittest is not only a natural law but also a principle that applies to business. While some companies ride the wave of the market, others face harsh conditions and grow through challenges, transformation, and hard work.
For small and medium-sized hardware enterprises, how can they weather the storm?
First, building a strong brand is essential. A brand is the backbone of a company, its "calcium." Without it, businesses suffer from "soft bones," struggling to stand firm. Time tests everything, and the companies that remain are usually those with strong brand identities, such as Zhang Xiaoquan knives or Yangjiang scissors. A solid brand ensures long-term survival and customer loyalty.
Second, these companies should focus on product quality rather than just quantity. Many Chinese manufacturers rely on OEMs, making minimal profits. Rising costs often make it difficult to sustain operations, and some even face dumping lawsuits. By shifting toward high-end products, companies can increase profit margins and escape the cycle of low profits and fast turnover.
Third, exploring new markets and channels is vital. For example, the Ningbo Fastener Industry Association partnered with China Export Credit Insurance Corporation to provide support for exports. Companies can also adopt a 1+N model, following leading firms to gain experience and support. One success story is Ningbo Nanluo Jiantong Fastener Co., Ltd., which successfully pledged its trademark "JT" and secured 3.86 million yuan in credit from Luzhou Bank. This marked the first successful use of intangible assets in Zhejiang under the trademark pledge policy.
Small and medium-sized hardware companies face multiple pressures:
First, rising raw material prices. In 2011, iron ore prices soared, putting pressure on downstream industries. Oil price hikes add to energy costs, affecting both production and logistics. Rare earth prices have also surged, causing losses for lighting and wind power companies. Some companies have started hoarding rare earths, treating them like gold.
Second, increasing labor costs. The hardware industry is labor-intensive, requiring many workers. However, younger generations are less willing to take on physically demanding jobs, leading to higher wages and labor shortages. Even automated companies struggle to find skilled workers, further increasing costs.
Third, currency appreciation and rising interest rates pose additional challenges. Currency appreciation makes exports more expensive, reducing competitiveness. High interest rates add financial burdens, making it harder for small businesses to survive. Combined with global economic instability, such as the European debt crisis and stock market volatility, the situation becomes even more difficult.
In short, small and medium-sized hardware companies are caught in a storm, fighting for survival amidst rising costs, fierce competition, and uncertain markets. They are like mermaids dancing on the edge of a knife—beautiful on the surface, but every step is filled with pain and struggle. Yet, with resilience, innovation, and smart strategies, they can still find their way forward.
Danfoss Type Refrigeration Solenoid Valve
NINGBO DOTEC is a refrigeration Solenoid Valve manufacturer and supplier in China for many year.
Options:
1. Port Size: 1/4'' to 2-1/8''
2. Connection: ODF (Solder), SAE (Flare), Flange
3. Coil Type: BE (Clip on, with terminal box), BF (Clip on, with flying leads), BG (Clip on, with terminal box)
4. Coil Voltage: 12VDC, 24VDC, 24VAC, 110VAC, 220VAC, or others
5. Applicable Refrigerants: HCFC, CFC, HFC, etc
Refrigeration Solenoid Valve, Refrigerator Solenoid Valve, Refrigerant Solenoid Valve
NINGBO DOTEC AUTOMATION CO., LTD , https://www.ningbodotec.com