The most heard argument was that domestic fastener companies refused to develop R&D because high-strength bolts were heavily invested and the profits were not high enough.
All along, the domestic fastener industry has a poor living environment and the vicious competition is very serious. The original domestic manufacturer of fasteners, Wuhan Automotive Standard Parts Factory, was very successful. However, with the emergence of a large number of new fastener companies and fierce price competition, the company’s products lost its competitive advantage and depended on its acceptance. Industry-recognized high-strength fasteners are difficult to maintain the normal operation of the entire company, and ultimately have to sell assets.
In addition, there are pressures from purchasing companies. On the one hand, when vehicle companies purchase parts and components, they often push prices to a minimum, especially in the fastener industry. This makes it difficult for some companies that invest heavily in the production of high-strength fasteners to be rewarded as quickly as possible. On the other hand, joint ventures In order to reduce costs, companies choose domestically-made high-strength fasteners and invest in setting up related joint venture parts and components factories. Their purpose is to extend the upstream industry and improve the group procurement system. In the face of such automobile groups, domestic fastener companies are supporting them. There are few opportunities.
However, all kinds of obstacles should not be an excuse for fastener companies to reject the high end.
The ability to mass-produce high-strength fasteners means that the company has the hard power to apply global resources. Whether it is capital reserves, raw material purchases, advanced equipment, or the precision of production processes, it is at the leading level in the industry. A high-quality, high-strength fastener product is the best business card for the company to open the market. In fact, the demand for high-strength, high-precision fastener products from vehicle and component companies is long-standing, and the trend of increasing domestic purchases is undeniable. Therefore, the fastener companies should take a positive attitude and be far-sighted. They should not be short-sighted and refuse to develop high-strength, high-precision fastener products.
Faced with multiple resistances in the market, different fastener companies have corresponding strategic choices. Large-scale large-scale fastener enterprises should use their own capital and resource advantages to make chips, establish joint ventures with customers or sign relevant cooperation agreements, form a benefit community, and jointly strengthen investment in R&D, ensure the upgrading of products, and ensure that enterprises Sustainable development and avoid falling into price wars. Small fastener companies should set up industrial alliances to optimize the industrial structure, divide each of the production processes and work together, and do fine work to create certain aspects of technological advantages, enhance competitiveness, and win the living space.