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Improving product competitiveness is the key to tool industry competition

Published: 2020-05-23 14:56:20 Browse: 90 times

After a long-term development, the cutting tool industry is now in a rising period. In such a stage, how to develop the cutting tool enterprises has become a positive problem for the major cutting tool enterprises.

The domestic cutting tool industry is at the low end of the world mold industry. Such a situation is related to the low level of science and technology in the whole industry and the continuous price war. In order to develop the cutting tool industry, it is necessary to increase the research and development funds, increase the scientific and technological content, and produce products with core competitiveness. Only by strengthening product research and development can we change the current competition mode.

Why does the domestic cutting tool industry always play a price war? At present, there are many domestic enterprises engaged in cutting tool production, but the scale is relatively small. They are basically small workshops, and there is no scientific and technological content at all. The products produced by small-scale tool enterprises are basically imitations, resulting in more and more homogeneous tools at the middle and low end. Tool enterprises are facing the problem of overcapacity and overstock. In order to improve the sales, the tool enterprises will reduce the price of products. Several cutting tool enterprises reduce their prices one after another, resulting in the whole industry in trouble, and the profits of enterprises are less and less. When profits continue to shrink, enterprises do not have extra funds for product research and development.

The long-term price war within the industry will affect the whole industry. China's cutting tool enterprises should enhance the technological content of their products, from the current price war to technological competition. At present, it is not profitable to simply seize market share, but to share market profits together. I believe that after the transformation of competition mode, the production level of Chinese enterprises can be greatly improved, effectively get rid of vicious competition, and let the cutting tool industry to a higher level.

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