There are several factors leading to the current predicament of the mold industry. First of all, the general market environment. Since the financial crisis in 2008, the crisis has never left. In the first two years, because of the government's four trillion yuan, there was still some improvement. In 2012, it was depressed again. These factors have led to difficulties in the manufacturing industry. As one of the core industries of the manufacturing industry, the mold industry will naturally be directly impacted, with fewer orders and lower profits. For people engaged in the mold industry, it will directly affect their income. In particular, the Diaoyu Island incident in 2012 affected all Japanese mold factories in the mold industry more or less. In addition, in the overall world pattern, the continued economic downturn in Europe and the United States has also directly affected our mold industry, because the molds with high profits in the whole mold industry are basically export molds. If there are fewer export molds, the profits will naturally be less. If the boss can't earn money, the salary will not rise naturally
This is an external objective factor. It is still difficult and basically impossible to change this factor in the short term. According to some newspapers and websites I read recently, it is difficult for the European and American economies to return to their former vigor for a long time in the future. The gradual improvement is predictable, and it is very difficult to ascend to the sky in one step. Fortunately, the domestic environment is much better. In the long run, stable improvement is certain. The relative profit of domestic molds may not be as good as that of export molds, and the victory lies in the quantity. However, there is no way for the mold industry to take off the coat of sudden profits. After all, except for monopolistic industries, no industry can have lasting windfall profits, and its ups and downs are normal. (in the development history of the mold industry published by me earlier, from the golden age to the silver age and then to the bronze age, this is also well illustrated.)
The development of everything is cyclical. The current trough is only temporary. The overall trend of China's economy will not change. The difficulties caused by this will certainly be gradually eliminated in the near future. Therefore, there is nothing to worry about this factor. Moreover, the economic downturn will affect not only the mold industry, but also the manufacturing industry. Most industries will be affected.
It is arbitrary to conclude that an industry is not working because of the overall environment. Unless the industry is completely dead or weak, it can not be said so. After all, the mold industry is a basic industry. Molds are indispensable to industry, just as catering is indispensable to people's livelihood.
Subjective factors in the mold industry.
The first is the mold factory. In recent years, attracted by the explosive profits of the mold industry in the early years, many practitioners in the mold industry have started their own businesses after having accumulated a certain amount of technology, capital and contacts. They have changed from wage earners to bosses. As a result, large and small processing shops, mold factories and consumables stores have sprung up one after another, and the number of mold companies has almost increased at a geometric multiple growth rate. From the perspective of personal development, it is naturally a good thing, but from the perspective of the industry as a whole, the work done by one company has a high profit. Now three companies are competing for it. In order to get the order, price war is naturally inevitable. You 10, I 8, you 8, I 5. It is in this shopping spree that the mold industry has finally changed from a profiteering industry to a medium profit or even a low profit industry. In this magnificent battle, different companies took different paths.
Some companies insist on quality and do not engage in price war. With the support of fixed customers and sufficient capital turnover, they gradually grow from small to large and finally become large companies. However, some companies lack these. They choose price war between quality and price. In order to save costs, they have to compress equipment and labor. As a result, a vicious circle is formed. The quality is getting worse and worse, and the unit price is getting lower and lower. Finally, they close their doors. When a company closes down, it will often have a chain reaction, which will lead to several companies not receiving the payment for goods, especially the larger ones, because now the business transactions between companies are usually monthly settlements. It is OK to close down according to normal procedures, and some debts can be recovered. Some of them are dry and brittle. As soon as the machines are sold, the payment for goods is collected and they run away. We have seen many such things.
In the relatively difficult period in recent years, a large number of small and medium-sized enterprises with weak viability have either expanded and gone on the right track or closed down. Basically, those who can survive to the present have their own ways, which is the big wave of the business world, and the survival of the fittest. Entrepreneurship is a good thing, and the ease of entrepreneurship in the mold industry is also a feature that attracts many people to join it. However, entrepreneurship is risky, and the success of a company is often based on the collapse of more companies. It is better to start a business after you have a certain foundation in capital, contacts and technology, especially after you have stable customers. It is often very difficult to set up a stall before finding customers. If you are not careful, it will be difficult to continue if the capital chain is broken.
These are the subjective factors within the mold industry. The industry itself is expanding too fast, and even if the economy is prosperous, there will be fierce competition, not to mention the unfortunate economic downturn, which brings difficulties.
The above is some of the recent status of the mold industry. Then let's talk about the future development expectations. I believe the majority of new people are still more concerned about this
Development expectation of mold industry
The first is the external environment, which has to be considered. Economic recovery is only a matter of time. There is nothing to worry about. Naturally, there will be a series of measures to stimulate the economy. As long as China's economy remains at about 8% per year, the manufacturing industry and the mold industry have nothing to worry about. Although windfall profits are no longer available, the door to entrepreneurship is still open to ambitious people. It's just that the threshold will be higher than before. The time should not exceed two years, because this time is half a bureau, and it can't see any effect. The most urgent thing is the national leader!
Then there is the internal environment. After the brutal competition in the extraordinary period in recent years and the closure of many poorly managed enterprises, survivors naturally have their own way of survival. Either there are stable customers, strong business, or excellent quality. Wine pilgrims come from the company, and the company's management personnel and technical force tend to be stable. Only in this way can the company pass through the running in period and enter the stable period. But also has a certain popularity.
Once the external environment of such a company improves, the business volume increases, and the profit increase is predictable. And then expand appropriately according to its own business volume. In terms of price, it will be much better than the current bloody war. After all, blindly fighting price war is not the king's way, and such a company will not survive for a long time. After the elimination of some enterprises, the situation that there are too many workers and too few workers has changed, and there is no need to engage in price war.
The company's profits have increased, followed by the increase of workers' wages. In particular, there will be a large demand for senior technical talents, such as senior mold design engineers, senior programmers, senior mold masters, and senior technicians in various positions, because such technical force is essential for a company to achieve stable development. In order to stabilize employees, wages will also rise to a certain extent. It is still possible to increase the current level by 20% to 30%.