How should fastener enterprises cope with repeated

How should fastener enterprises deal with repeated changes in raw material prices

in the whole manufacturing industry chain, it is understandable that the fluctuation of raw material prices affects the downstream fastener industry, but there is not no way at all. The future development of fasteners should fundamentally solve the problem, and how to solve the transition capacity of low-end products? How to grasp the purchasing opportunity of raw materials to achieve low-cost production capacity? How to reduce production costs and save resources? These are the problems that enterprises should face directly. Raw materials are "rising", and passive enterprises will be shuffled. In order to survive and develop, they must take the initiative to attack, find another way, and practice their internal skills to deal with market changes

in 2012, fastener enterprises mostly talked about "transformation" and "upgrading". However, under the premise of transformation and upgrading, the required installation space has been greatly reduced. Most Chinese fastener enterprises are facing such a situation: the price of raw materials is rising, the RMB is appreciating, and labor costs are rising. In mid September, raw material prices once retaliated. The tightening experiment is an experimental method often used to study material properties, which is 5.6 percentage points higher than the industrial added value of national industrial enterprises. The cold heading steel market in Shanghai rose by 50 yuan/ton, and wire rod products generally rose sharply. It is well known that the fastener industry is highly dependent on the raw material industry, and the rise in raw material prices has a direct impact on the production cost of fasteners, Put great pressure on tight enterprises

in recent years, the price of raw materials has been soaring due to inflation, RMB appreciation and other reasons. If the cost of raw materials of fastener enterprises accounts for more than 60% of the final product price, they will face severe pressure. If it exceeds 70%, they will have to raise the price. For some fastener enterprises, especially small and medium-sized enterprises, because they do not have a complex assembly process, they cannot produce scale effects, and the rise of raw materials poses a great threat to their survival

even so, the fact that the era of high cost in China's fastener industry has come is irreversible. Fastener and parts enterprises can only accept the reality of "being increased in price". Under the dilemma of less and less profit, production enterprises can only increase the unit price of products to maintain the most basic productive expenditure. Some enterprises revealed to the Chinese screw that they had to raise the price of their products to survive because of the surge in raw materials, but because of this, they have received one after another official letters from customers asking for a reduction in product prices. The rising price of fastener raw materials has led to rising production costs, which has become a bottleneck in the development of enterprises and even a threat to their survival. However, we cannot settle for this, As Chen Weibiao, general manager of Hangzhou Tehui Standard Parts Co., Ltd., said, "the soaring raw materials are external factors, and we cannot change these economic factors. But we can start to change from within our enterprise, such as product quality, internal structure, strengthening technology investment, accurately positioning product value level, improving customer service concept, etc. these internal factors are the key points that we need to change." This leads to the problem that fastener enterprises need to think about: the rising cost of raw materials leads to enterprises having to raise product prices, but the premise of product price rise is the improvement of technology and brand strength, which is a continuous process. For small and medium-sized fastener enterprises, technology improvement is a bottleneck, and they need to survive hard

it is urgent to remove the "low-end" label

in this era of high-cost production, the advantages of "speed for market" and "cost for capital" have been gradually weakened. Looking back on the development process of the fastener industry in the past, it is not difficult to find that whenever the market is booming, there must be product saturation. The output of fasteners in China accounts for one quarter of the global output, but most of them are low-strength and low-grade products, of which standard parts below grade 8.8 account for about 45%-50%. In the environment of high raw material prices, the overcapacity of low-grade standard parts has become a stumbling block to the development of the whole fastener industry. Overcapacity and a large amount of inventory backlog lead to the shortage of operating funds of enterprises. If enterprises want to convert costs into profits, they have to find another way and increase the investment in technology. Only with good technology can they develop broader market resources. Now, we should look to the future. National key construction projects such as "high-speed rail", "aerospace", "highway" and "airport" are providing opportunities for enterprises to move towards the high end. Boeing plans to add 3400 aircraft in the next 20 years, and the national development and Reform Commission will invest 800billion yuan to build rail transit in six cities. According to the plans of 36 planned cities to build urban rail transit projects, by 2020, The new operating mileage of urban rail transit will reach 6560 kilometers, and the demand for rail fasteners will reach 100 million yuan. These large-scale projects will greatly increase the demand for high-end fasteners such as high-strength fasteners and titanium alloys, such as Huayou cobalt, greenmead and Jinchuan groups. It is possible to remove the "low-end" label

always pay attention to and grasp the procurement opportunity

for fastener manufacturers, all finished products cannot be separated from the large procurement of raw materials such as iron ore and wire rod. Since the first ten days of September, the ex factory price of ordinary carbon steel billet has increased by more than 16%, and the rebound range of iron ore Platts index is close to 26%. The price of raw materials has been raised too fast and too violently, which has made it difficult for downstream demand to follow up, and the sharp correction of ore price in the later stage may be unavoidable. The price fluctuation of raw materials plays a decisive role in the procurement cost of China's fastening enterprises. We should actively purchase raw materials at the relatively low price, so as to prepare for mass production in the future to reduce costs. Therefore, being able to pay attention to the price fluctuations of raw materials and buy at a low cost is also one of the conditions for the success of an enterprise decision-maker

control production costs and save resources

fasteners have always been made of steel materials. Due to fierce market competition, quality and cost have become the main means for fastener enterprises to compete. Mr. Zhang Xianming, a fastener expert who has been engaged in metal materials and heat treatment processes for many years and has rich on-site experience in heat treatment, believes that there are two main ways to reduce costs: 1. Reduce the content of alloy elements or use other low-cost alloy elements as strengthening materials; 2. Reduce the manufacturing cost of fasteners, such as non modulated steel used to reduce the heat treatment process in the bolt production process, free cutting steel used to improve the machining capacity of nuts, etc. The introduction of technology in China's automotive industry has promoted the application of new cold heading steel materials. Some major high-strength fasteners have adopted the corresponding foreign material standards. Zhang Gong believes that in order to achieve the goal of saving resources, accelerating the research and development of special steel for bolts will be paid attention to in the coming year. This is also the development trend of tight enterprises under the situation of soaring raw material prices