First of all, the China cutting disc for metal manufacturing industry is a very competitive industry: (1) In terms of technical content and investment scale, the entry barrier is very low: (2) some small-scale users are not very important in their field of use, it is difficult to reflect Cost-effectiveness of grinding wheel products: (3) Market development in some regions. All of these inevitably result in some products with inferior quality, low prices, and very counterfeit products flooding the market, causing many formal enterprises to be dragged into the quagmire of vicious competition, without the energy and ability to engage in product quality and management…
Secondly, in recent years, the price increase of raw materials for grinding wheels such as chemical products and abrasives is much higher than the price increase of grinding wheel products, resulting in a decline in the economic benefits of enterprises.
Third, the rapid development of the economy has provided a large number of jobs, and the low price disc for metal manufacturing industry has gradually been left out of the labor market due to its unfavorable factors such as high labor intensity and poor working environment. Even the stability of the existing staff and the team is declining, the workers are moving very frequently, and the continuous increase in workers’ wages is the overall trend of social development. These factors not only increase the proportion of labor costs but also increase the proportion of labor costs. The difficulty of operating the factory.
Fourth, the appreciation of the renminbi and the adjustment of the national industrial policy, such as the reduction of the export tax rebate rate, have a greater negative impact on enterprises engaged in the export of grinding wheel products, which reduces their economic benefits, thereby forcing them to expand the proportion of domestic products. Industry competition is more intense.
Faced with the harsh situation, all major and medium-sized enterprises are constantly adjusting their business strategies and improving their competitiveness. The main measures are:
First, implement economies of scale, improve manufacturing efficiency, and achieve low-cost operations. In recent years, many major resin grinding wheel manufacturers have continuously increased investment scale, increased production capacity, adopted advanced technology and equipment, improved production efficiency, and reduced manufacturing costs, thus ensuring continuous improvement of overall economic efficiency.
Second, professional production enables it to concentrate its human, material and financial resources to develop its first products, increase investment in research and development, improve its technical level, stabilize product quality, and make its brand image deeply rooted in the hearts of the people, maintaining the stability of its customer base and reducing its viciousness. The impact of competition.
Third, the use of advanced management tools to save potential, so that corporate consumption continues to decline.
Fourth, further adapt to market demand and improve service quality.