Thoughts and actions of tool companies in the financial turmoil

The financial turmoil has intensified, sweeping Europe and the United States from the United States to sweeping the globe, and the financial sector has affected the real economy. China, which is deeply integrated into the world economy, cannot be immune to it. China's manufacturing industry, especially export-oriented enterprises, has been greatly affected. Tool companies closely related to the manufacturing industry have quickly felt the coldness of the bones, and export-oriented tool companies are even more It is the hardest hit.
China's tool companies and cutting workers have two pains in their hearts: one pain we have occupied the domestic high-end tool market under the conditions of possessing resources and geographical advantages; the second pain we waste resources and pollute the environment but can only export low-priced low prices. Tool products. In the face of the impact of the financial turmoil, we should think about it and act more.
I have argued with a few friends whether the use of foreign knives "revitalized the foreign tool industry." Later, a consensus was reached, that is, to examine from the height of China's manufacturing industry. At present, there is still a big gap between China's knives and foreign countries, and our cars, molds, aviation, aerospace, and military industries cannot wait. Therefore, we must use foreign advanced tools to improve production efficiency and reduce production costs, while trying to catch up with the advanced level of foreign tools. I often think afterwards: I am worried that revitalizing others will affect our will and determination to overcome. The CEO of a foreign-owned tool company I know, the attitude of opening up and supporting Chinese tool companies, and the competition among foreign counterparts, because "there is competition to have the momentum to move forward." Different thinking reflects two different cultures, from which I realize that “the best way to not revitalize others is to bravely face competition”.
After 30 years of reform and opening up, China's economic strength has grown tremendously. I often marvel at the investment in the technological transformation of large domestic tool companies. Through land operations, capital operations, and support for national policies and projects, the investment is several hundred million, which is not inferior to the $30 million of the Kennametal Tianjin plant and the more than $20 million of the Iskar Dalian plant. They purchased world-class CNC tool grinding machines and the best coating equipment, and also introduced excellent talents, ambitiously involved in the domestic manufacturing high-end tool market competition, from the foreign tool manufacturers in China to sell 400 million per year ~ Get your share of the $500 million high-end knives.
However, the development of tool companies must go through a process of accumulation and gradual progress, including product, technology, market, talent, brand and so on. In the business model, it is necessary to gradually shift from the production and marketing of standard tools to the provision of special tools to the complete solution. From selling products to selling technology to rising to provide comprehensive services. With the ingenuity of Chinese cutter workers and bravely facing competition, in this game of will and strength, we will gradually achieve the goal of becoming a domestic and international high-performance tool market.
Did everyone notice the change in the name above? “High-end tools” was renamed “high-performance tools”. In the past, we used to refer to the part of the tool that is opposite to the high-end tool as a low-end tool. The two high and low styles inadvertently confuse the two distinct concepts of tool performance and quality, and unknowingly confuse low-end tools with inferior products. To give a popular example, although the car is "upscale", it will also have inferior quality. Although the bicycle is "low-grade", there are also famous brands and fine products. It is recommended that high-performance, high-tech tools for high-speed cutting, high-efficiency cutting, heavy cutting, dry cutting, etc., be called "High Performance Tools", and other tools can be called "Normal Tools". Both high-performance and general-purpose tools can be made into fine pieces, each with its own specific application area.
We are well-known for ordinary knives, and we should also focus on creating the best of ordinary knives. In recent years, the issue of exporting civilian twist drills has received much attention from all quarters, not only criticizing the quality of its products, but also pointing out its many drawbacks of wasting resources, polluting the environment, and disorderly competition. In terms of various restrictions on the policy, new material standards have been formulated, and the export tax rebate rate has been lowered. In short, it is much more critical, and it is limited but not limited. why? There is a huge demand in the market. In developed countries, there are always more than one set of drill bits. It is also a blessing to spend a dollar or two to buy a good drill bit. DIY (Do it yourself) does not need high-performance drill bits of hard alloy. In the past two years, it has been estimated that the annual sales volume of high-speed steel twist drills in the global DIY market is about 30 billion yuan.
The price of foreign brand drill bits is much higher than that of domestic drill bits. We should change the restriction to upgrade and transform the strategy of low-cost competition to manufacture fine drills into the international market.
When everyone's eyes are on high-performance knives, or when they compete for the domestic common tool market, there is a company's reverse thinking to position products in DIY boutique drills (ordinary knives) and target market targets in developed countries and regions. There is strength and courage to make this choice. Although there are risks, it is a bold and eye-catching choice. They have survived and invested in a difficult economic environment and established cooperative relationships with foreign superior enterprises with technological development advantages. Leverage the opportunity of ISO9001 certification and supplier qualification to learn and learn from the advanced corporate culture, and strive to improve the management level of the enterprise. It is hoped that their strategic vision and practical actions will lead a way in this game of strength and will.
The financial turmoil has not yet bottomed out. Our tool companies are thinking about fighting hard. Whether it is to make high-performance tools or ordinary tools, or to open up the domestic market or the international market, one thing is the same: that is, to strengthen the boutique strategy, strengthen technology and product development, continuously improve the management level of enterprises, and build excellent enterprises. culture. Still the same sentence: the shuffling of the tool industry is inevitable. Those who have the strength, determination, strategy, and hard work can win the final victory. It is believed that after the baptism of the financial turmoil, the overall quality of China's tool industry will have a big improvement, occupying its due position in the international and domestic tool market of strong hands.