Hardware and electrical industry need to guard against the danger of overcapacity
With the development of social economy and the improvement of people's living standards, the market demand for hardware and electrical products has further expanded, and the market demand has become more and more multi-layered and diversified. Under the attraction of huge market space, many hardware and electrical enterprises have gone on and on, and participated in the team that competes for the market cake. However, with the increasingly fierce market competition, production supply is far greater than market demand, resulting in imbalance between supply and demand. In addition, many companies lack core competitiveness, homogenization competition is serious, and the dilemma of low-price competition has led many hardware and electrical enterprises to operate. Development has encountered great obstacles. Taking the LED industry as an example, due to the broad market prospects and the strong support of national policies, many companies are also optimistic about the low-carbon lighting market and actively participate in market competition. Even a considerable part of it is transferred from the traditional lighting industry. However, due to the lack of core technology in most enterprises, the production of products is only increased by quantity, and even satisfied with "one hammer trading", it is difficult to form a brand influence. The oversupply caused by the explosive growth of the market supply in a short period of time coupled with the long-term disorderly competition, eventually led to the emergence of industry drawbacks, unable to withstand the wind and rain, many rushed production companies are also reluctantly eliminated in the industry reshuffle Out. For example, in the steel industry of the basic industry, the recent development has also shown a sluggish trend. It is reported that in the first quarter of this year, steel also achieved a net profit of minus 1.034 billion yuan, which is the first industry-wide loss since the new century, and the largest decline in industrial profits nationwide. industry. Some insiders pointed out that starting from 2012, the industry has entered a stage of overall surplus. In the past two years, China's steel production capacity has been seriously oversupplied. According to the apparent consumption of crude steel, it is calculated at around 688 million tons, and the overcapacity rate has reached 122%. Many small and medium-sized enterprises that are not competitive are facing losses or even being eliminated. Large enterprises like Wuhan Iron and Steel also have to carry out non-steel businesses such as raising pigs to increase profits. On the one hand, overcapacity has severely hit many weak hardware and electrical SMEs. On the other hand, it has accelerated the reshuffle of the industry. Under the pressure of the market, hardware and electrical enterprises must also transform and upgrade through technological innovation, brand enhancement and cost reduction. Seek survival and development. Mechanical and electrical online editors believe that hardware and electrical enterprises need to be vigilant in the market competition, companies should recognize that the market is flexible, although the industry itself has bright prospects, but after all, the market demand for a period of time is limited. If enterprises want to become bigger and stronger, they must have a sense of long-term development and an ability to predict the development of the industry. They must also develop steadily while transforming and upgrading. They cannot rush to the top and consume a lot of financial resources and resources. When companies turn to hot industries, they should give themselves as much as possible to reduce the market risk.
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