President Feng Jinkai: How Wet Economy Companies Improve Their Competitiveness

In the first half of 2011, GPT maintained a growth rate of 9.5%, which is also the domestic and export market for fasteners, despite the difficulties we face in working hard, high labor costs, tight energy sources, volatile material prices, inflation, and instability in the world economy. It has increased certain development opportunities and generally maintained relatively stable development. However, in the second half of 2011, inflation, the sharp increase in key industries, the tightening of monetary resources, and the economic downturn in Europe and the United States have made the fastener industry even more vulnerable.

From November 21st to 23rd, 2011, the 24th China National Fastener Economic and Trade Fair and Technology Fair was held in Hefei, Anhui Province. This Fair attracted a total of national, collective, private, foreign and joint ventures across the country. More than 500 people in the industry, such as firmware manufacturers, distributors and demand-side entities, participated.

In the report of the conference, Chairman of the Fastener Branch of China National General Machinery & Components Industry Association, Feng Jinlu, made a report on the status of China's fastener industry. He pointed out in his report that 2010 is the year when China’s “Eleventh Five-Year Plan” ended. Fastener companies, under the guidance of the “Restructuring Plan for the Machinery Basic Parts Industry”, have taken the emerging industry as a support to seize the domestic sales market, emerged from the trough in 2009, and steadily increased, maintaining a healthy and stable development. However, there are still weaknesses in China's fastener market, such as the decentralization of micro-enterprises, low value-added products, excess production capacity, dumping of reserve prices, unregulated markets, and weak corporate competitiveness.

The measures under the severe test of the fastener industry face severe challenges and challenges. President Feng Jinxi emphasized that the company should have sufficient understanding and psychological preparation. In response, he proposed countermeasures to deal with new difficulties and new challenges:

To insist on development is the hard truth, and intensify restructuring, acquisitions, and adjustments in difficult situations.

Relies on industry to develop high-performance, high-intensity, high-value-added products.

Give full play to the advantages of independent innovation of enterprises, vigorously develop information technology and high-tech applications, and increase the level of manufacturing and labor productivity.

Based on the domestic market, promote dislocation competition, standardize the market order, oppose and stop the price dumping, continuously adjust product prices in practice, adapt the price of fastener products to the production cost, adapt to the international market, and adapt to the brand and quality. .

We must speed up the withdrawal of funds, strictly control the scale of loans and investments, and pay more attention to controlling cash flow.

We must pay attention to the changes in the European and American markets, actively respond to various trade protections, and stabilize the export market.

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