Thrift Age – China’s Hardware Industry
Recently, “The 11th Five Plan” in China’s mould industry, machinery industry, bearing industry and electric tool industry has been put forward in succession. In these plans, research, development and popularity of “thrift new products” have been adopted. Meanwhile, some related commercial associations or chambers are preparing to put “research, development and popularity of thrift new products” into industrial self-discipline projects. According to the related information from large hardware shows in China, thrift new products have attracted the attentions of all the attendees. Therefore, China’s hardware industry is entering into “Thrift Age”.
Hardware industry is a typical “Resource-Consumption” industry. In the manufacturing process, large quantities of metal raw materials (including steel and nonferrous metal) are required and a great deal of energy (including electricity, gas and so on) is consumed. In 2004, the total export volume of hardware tools, construction hardware and home hardware products in China had amounted to 17.3 billion US dollars, listed as Top 1 in the world, exceeding Germany and the United States, which is based on consumption of large quantities of raw materials and depends on the low-priced advantages. Meanwhile, the export unit price of China’s hardware products is much lower than European’s and American, even accounting for one-tenth. In other words, if we produce the products with the same value as European and American products, we will spend much more raw materials and energy.
The statistics from Mechanism Industrial Association indicates that expenses of energy and raw materials account for 70% of the cost in the production of machineries. So machinery industry has great potential in the aspects of saving energy, water and raw materials.
Based on the industry situation and demand of future development, China’s hardware or machinery associations or chambers orientate to development thrift industries. Thrift age in hardware industry is approaching to us.
