Hardware industry is a very micro industry, and the proportion in the national economy is very small. The scale of the company is generally not large.” Zhu Renhe, secretary-general of the China Wujiadeng Chemical Industry Association, said, “In recent years, China’s hardware industry With a growth rate of 20%, the total annual output value reaches 400 billion yuan, and at present, there are more than 50,000 domestic production companies, mostly private enterprises, and more than 200,000 traders.The hardware market is mainly distributed in Zhejiang, Jiangsu, and Shanghai. In places like Guangdong and Shandong, Zhejiang and Guangdong are the most prominent."
Although the hardware products industry produces small products and the unit value is relatively low, due to its wide application in the automobile industry, real estate industry, shipbuilding industry, construction machinery, petrochemical industry and other industries, demand shows a trend of rapid growth. In recent years, the average annual growth rate of the global hardware market has reached about 5.7%. In 2003, the global hardware market reached about 500 billion US dollars. From the tool hardware market point of view, according to analysis of data provided by the world's economic and trade economic and trade information, in recent years the tool hardware of developed countries continues to sell well.
According to statistics from the Beijing Hardware Association, due to the impact of the global financial crisis, the momentum of growth from the fourth quarter to the first three quarters of the previous year began to slow down, and many small businesses had to stop production conversion due to cost pressures. Of the more than 50,000 manufacturing enterprises in China's hardware industry, at present, about 20,000 companies (mostly small ones) have been very difficult to survive, and some of them have been closed down or closed down. Only 25% to 30% of hardware companies can maintain good operating conditions.
Although the financial crisis has a major impact on China’s hardware exports, the financial crisis is global. The financial crisis has also had a profound impact on foreign companies while affecting Chinese companies. It has even more impact on developed countries than China. As an emerging economic power, China’s economic growth has slowed down due to the financial crisis. According to forecasts, it can still maintain a growth rate of about 8%. With the government’s strong investment in the domestic market, the hardware industry has a vast market in China and With the potential of consumption, hardware companies with technological advantages can use this vast domestic market to survive this “winter”. On the other hand, in the international hardware market, due to the financial crisis, hardware companies in developed countries in Europe and America have also closed down. Domestic hardware companies should make full use of this opportunity to increase their technological content, increase their added value, change their mode of growth, achieve industrial upgrading, and use their advantage of lower labor costs to expand exports and open up new markets