Five fatal flaws in China's tool market

At present, Chinese tool companies have occupied half of the market through continuous learning and strategic planning. However, in the course of development, enterprises still highlight several fatal problems. If they are not adequately addressed and handled improperly, they will seriously affect the development and progress of enterprises.
First, the technology and technology content is low. At this stage, cemented carbide tools have dominated the tool type in developed countries, with a proportion of up to 70%. High-speed steel tools are shrinking at a rate of 1% to 2% per year, and the proportion has now fallen below 30%. At the same time, carbide cutting tools have become the main tools required by processing companies in China, and are widely used in heavy industry such as automobile and parts production, mold manufacturing, and aerospace. However, Chinese tool companies blindly and mass-produce high-speed steel knives and some low-grade standard knives, without considering the market saturation and business needs, and finally put the high-end value-added, high-tech content of the high-end tool market "To foreign companies.
Second, the added value of the product is low. Of the 16,500 tons of cemented carbide produced in China, 4,500 tons are used in the production of cutting tools, which is equivalent in quantity to Japan. However, the value of the tool is only 800 million US dollars, far less than Japan's 2.5 billion US dollars. This fully shows that the overall production level of China's cemented carbide high-efficiency tools is still quite different from that of foreign countries.
Third, services are not in line with the international community. This is one of the reasons why some Chinese companies are not able to win the favor of customers despite their “large volume”.
Fourth, the road to enterprise informationization is blocked.
Fifth, the waste of resources is serious. Relevant information shows that China produces about 80,000 tons of high-speed steel, accounting for about 40% of the world's total output. However, due to the lack of accurate information on market supply and demand, the production of high-speed steel tools is excessive and has to be sold at low prices, resulting in a large number of tools. The production enterprises are inefficient, and they also waste a lot of valuable rare resources such as tungsten and molybdenum.

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