1. The prices of raw materials for the hardware processing industry continue to rise.

Following a wave of increases in the fourth quarter of 2007, the prices of bathroom hardware rose slightly again in early March 2008. Since 2007, international copper prices have increased by 66%; the starting price of copper on the London Futures Exchange has risen from US$1,800/ton at the beginning of this round to US$7,300/ton, a cumulative increase of more than 300%; nickel for hardware processing required for the production of stainless steel The prices of metal materials and other materials have increased significantly; starting from May 2008, ceramic companies have raised prices one after another, with an average increase of 8.6% for ceramic tiles. In terms of hardware processing in the domestic market. Local shortages occurred; Baosteel and Australia's Rio Tinto, one of the world's major iron ore producers, reached an agreement on the 2008 iron ore benchmark price. Rio Tinto's PB powder ore, Yangdi powder ore, and PB lump ore will Based on the prices in 2007, they increased by 79.88%, 79.88% and 96.5% respectively. This result undoubtedly pushed domestic steel companies to a critical juncture... These figures can be said to be shocking. The prices of raw materials in the hardware processing industry are constantly increasing. It is not surprising that hardware processing products are priced at a high price

It has always had the advantages of low raw materials and low labor costs for manufacturing tools and hardware processing. For many years, our country has been the world's largest steel producer and the world's most populous country. country. In recent years, exports have maintained a stable growth trend, making my country one of the world's major importers of tool and hardware processing products. However, with the regulation of national macro policies, the price of steel, the main raw material, has risen sharply since last year, the country has reduced the import tax rebate rate, and affected by the international environment, the RMB has continued to appreciate. In addition, the implementation of the Labor Contract Law in 2008 has The recent increase in labor interest rates has gradually worsened the situation of domestic manufacturing, with a particularly significant impact on the labor-intensive hardware processing industry. The development trend of the domestic hardware industry is not optimistic, and can even be said to be quite severe. 2. The operating status of the hardware industry market in the past seven years

The sales revenue of China's metal products industry has increased year by year, with the growth rate remaining above 14%, and the market size has continued to expand. In 2006, the industry's sales revenue reached 812.352 billion yuan, with a growth rate of 29.39% in the past seven years. Compared with 2000, the market size has expanded by 2.62 times. With the rapid development of domestic economy and industry, the demand for a large number of hardware parts is strong and the market size is expanding. The production and sales ratio of China's metal products industry has remained above the industrial standard value of 96% for the past seven years. The market production and sales ratio is reasonable. 3. Comparative analysis status of hardware industry sub-sectors in 2006

The metal products industry mainly includes 9 major sub-sectors. In 2006, the number of enterprises in China's metal products industry reached 14,828. Among them, the number of enterprises in the structural metal products industry reached 4,199, accounting for 28.31% of the entire metal products industry, according to the "National Economic Industry Classification" standard. Ranking first among all sub-industries; followed closely by the metal products manufacturing industry for construction and safety, accounting for 13.33% of the entire metal products industry. The stainless steel and similar daily metal products manufacturing industry and the metal tool manufacturing industry are only 32 companies apart. , accounting for 12.44% and 12.22% of the entire metal products industry respectively. The number of enterprises in the enamel products manufacturing industry is the smallest, 198, accounting for only 1.34% of the entire industry. The market size of China's metal products industry has reached 812.352 billion yuan, of which the structure Sexual metal products accounted for 29% of the market share in 2006. Slightly higher than the number of enterprises, the enamel products manufacturing industry only accounts for 1.09% of the entire metal products industry.

Four. Internationalization of domestic competition will be the development trend of my country's hardware processing industry in the next few years.

1. China’s status as the world’s hardware processing and manufacturing center will be further stabilized

China has become the most dynamic economic region in the world. China's economic facilities are relatively perfect. With the acceleration of China's integration into the global economic environment and the rapid rise of its economic strength. The industrial development is relatively mature and the labor cost is low. It has the comparative advantage of being the world's hardware processing and manufacturing center. The hardware processing manufacturing industry has obvious export-oriented development characteristics. The growth rate is higher than the sales volume in the domestic market; major hardware and electrical products are in full bloom. The strengthening of the intermediate position first reflects the overall growth in the import of hardware products in recent years: the import growth rate of major hardware products is higher than the growth rate of output. Not only did the traditional imported products such as power tools, hand tools, and construction hardware products experience a high growth rate, but also kitchen appliances and bathroom products, which previously accounted for half of the import share, also experienced significant import growth in 2004. The great market and central position will further attract hardware multinational companies to shift their manufacturing centers to China.

2. Cooperation between enterprises will be significantly strengthened

In order to obtain a helpful competitive position and improve competitiveness, in the context of global competition. Property capital is another theme running the industry.

In 2004, Supor and Vantage were listed successively, and Hongbao is also actively working for the listing. Vanhe's capital market operations will not stop due to the failure of its reorganization with Guangdong Meiya. From a capital perspective, the current main feature is the intensifying expansion of capital. From the perspective of competitive behavior, cooperation in resource sharing among enterprises is increasing.

3. The polar decomposition of enterprises will further intensify

The direct consequence of this type of high-speed shock is the expansion of the trend of polar decomposition in the hardware processing, kitchen and bathroom brand camp.

4. Competition among sales channels is becoming more and more intense day by day

Quality pressure is increasing due to the oversupply of domestic hardware processing kitchen and bathroom products. Sales channels have become one of the key competitive factors, and the competition for channels is becoming more intense day by day. On the one hand, kitchen appliance manufacturers have strengthened their control over retail terminals, striving to reduce sales links, save sales expenses, develop sales channels in a professional direction, and develop corporate sales models in a direction that can adapt to diverse markets at the same time. On the other hand, the development trend of the sales industry has caused the status of large home appliance chain stores to rise from time to time, and their ability to control the industry has been enhanced. They have participated in and triggered price competition that was previously mainly dominated by manufacturers. Relying on their broad market coverage, sales scale and cost advantages, large retailers will have greater control over manufacturing companies in aspects such as product pricing and payment delivery.

5. Market competition will shift to high-quality, high-tech products

Profit margins at all stages of the hardware processing industry chain are being compressed, and the space for price reduction is decreasing day by day. . More and more companies realize that price competition alone cannot establish core competitiveness and is not the direction of long-term development, so they strive to explore new development paths. Many hardware companies have increased their investment in technology, developed new high-tech products, regarded product differentiation as a long-term strategy for corporate development, sought new market demands, and established new economic growth points (entering into industries such as small household appliances and Other similar industries), with the deepening of competition. To achieve sustainable development of enterprises.

6. The integration of domestic and overseas enterprises will be further accelerated

To expand the international market faster, domestic hardware processing enterprises will improve their own strength. We will accelerate integration with foreign companies through various means to improve product quality and competitiveness. While continuing to expand markets in traditional countries such as the United States and Japan, Southeast Asia, the Middle East, Russia, Europe, Africa, etc. will also fully bloom.