The polarization of bearing enterprises in Cixi City in Zhejiang is becoming more and more serious this year: 10% of companies have achieved growth of more than 10%, 30% of companies have maintained the scale of the previous year, 60% of companies have gone from bad to worse, and are on the verge of elimination. Local industry sources pointed out that this polarization is irreversible, the industry is in a period of reshuffle, and the task of enterprise transformation and upgrading is urgent.
Bearings are the core components of the equipment manufacturing industry. At present, the global equipment manufacturing industry is undergoing upgrading. The demand for quality is getting higher and higher, and the demand for high-end and high-end bearings has increased significantly. The low-end and middle-end bearings have excess capacity, plus labor and capital. The cost elements continue to rise and become increasingly severe. Even if the company wants to make a transition, if it does not have the strength, it will face many difficulties due to its high input costs and high market risks.
As the forerunner of the local “machine substitutionâ€, Hu Chengjiang, Chairman of Hutchison Bearing Group, calculated a profit statement: Although the efficiency of enterprises last year was higher than that of ordinary companies by more than 30%, the profits were only over 10%. Therefore, other companies encountered difficulties in efficiency. The bureau can imagine.
Speaking of the status quo and transformation of the industry, another local bearing company manager sighed with emotion: “It has never been so urgent. The pressure and challenges are so great. Although the current middle and low-end bearings also have some room for profit, the price war has intensified and the efficiency has continued to decline.â€
Although the new earth bearing company has been supporting domestic appliance giants such as Haier, Midea, Gree and other household appliances industries, it has occupied the front rank in related product categories. However, in recent years, the household appliance industry has become more competitive and profit margins have fallen. Wang Naiming, general manager of the company, stated that It is imperative that high-end industries be locked in and product upgrades must be pursued.
Bearings are the core components of the equipment manufacturing industry. At present, the global equipment manufacturing industry is undergoing upgrading. The demand for quality is getting higher and higher, and the demand for high-end and high-end bearings has increased significantly. The low-end and middle-end bearings have excess capacity, plus labor and capital. The cost elements continue to rise and become increasingly severe. Even if the company wants to make a transition, if it does not have the strength, it will face many difficulties due to its high input costs and high market risks.
As the forerunner of the local “machine substitutionâ€, Hu Chengjiang, Chairman of Hutchison Bearing Group, calculated a profit statement: Although the efficiency of enterprises last year was higher than that of ordinary companies by more than 30%, the profits were only over 10%. Therefore, other companies encountered difficulties in efficiency. The bureau can imagine.
Speaking of the status quo and transformation of the industry, another local bearing company manager sighed with emotion: “It has never been so urgent. The pressure and challenges are so great. Although the current middle and low-end bearings also have some room for profit, the price war has intensified and the efficiency has continued to decline.â€
Although the new earth bearing company has been supporting domestic appliance giants such as Haier, Midea, Gree and other household appliances industries, it has occupied the front rank in related product categories. However, in recent years, the household appliance industry has become more competitive and profit margins have fallen. Wang Naiming, general manager of the company, stated that It is imperative that high-end industries be locked in and product upgrades must be pursued.