Mould Industry Worries Many Industrial Investment Risks Cannot Be Ignored

Mold manufacturing is the foundation of the manufacturing industry. In electronics, automobiles, motors, electrical appliances, instruments, meters, home appliances, and communication products, 60% to 80% of parts must rely on molding. The capacity of the Chinese mold market has reached 80 billion yuan. During the "Eleventh Five-Year Plan" period, the market share of China's mold industry will reach 120 billion yuan. Although the current mold industry has a vast market space, the mold industry is plagued by foreign capital monopolizing the profit margin of the industry and the problems inherent in the domestic-funded enterprises. The risk of industrial investment has suddenly increased.

First, foreign-funded enterprises are stepping up to erode the foreign investment in the mold market to set up factories in China. What is fancy is China's low labor costs and cheap steel. The core technology is the secret that they are firmly in control. Advanced technology and financial strength, coupled with China’s labor force and cheap raw materials, have made its competitive advantage in the market steeper, while Chinese companies have increased the difficulty of upgrading their grades.

During the "10th Five-Year Plan" period, China's mold industry has grown rapidly, with an average annual growth rate of 20%. In 2005, the mold sales in the Chinese mold industry reached 61 billion yuan, up 25% over the previous year. With a total import volume of more than 2 billion dollars, the capacity of the Chinese mold market has reached around 80 billion yuan. Experts predict that during the “Eleventh Five-Year Plan” period, the market share of the Chinese mold industry will reach 120 billion yuan.

In recent years, the new round of expansion of international mold manufacturing giants to invest and set up factories in China is in full swing. Hella Jilin, Germany settled in Japan; Japan's Toyota Mould Tianjin set up a plant; Finland's Belrose Corporation invested in the construction of a Shenzhen mold manufacturing plant which was formally put into operation shortly before; it is designed to provide high-end mold products for the telecommunications, healthcare, electronics, and automotive industries...

The large number of foreign capital entering the country alone will not help China's own mold level. Foreign-funded enterprises have advanced technology and financial strength. By reusing China's labor force and cheap raw materials, the competitive advantage is self-evident. Chinese enterprises in the high-end mold market that they have occupied are even more inaccessible, which means that Chinese-funded enterprises have no chance to upgrade. What Chinese enterprises are most afraid of is that their own strength has not been enhanced. Foreign-funded enterprises have completed monopoly on the Chinese mold market.

At present, the scale of China's mold industry is second only to Japan and the United States, but most of them are concentrated in the middle and low-end areas, and the technical level and added value are low. According to the data provided by the China Die and Mould Industry Association, the precision, complex stamping dies and plastic molds, car cover molds, electronic connectors and other electronic product molds that are urgently needed in China’s manufacturing industry still rely heavily on imports. The import and export deficit of mold products exceeds 10%. Billions of dollars.

Second, the hidden troubles of domestic-funded enterprises According to incomplete statistics, there are currently more than 20,000 factories producing molds nationwide, of which more than half are self-produced. At the same time, most of them are small-scale enterprises. In recent years, the pace of structural adjustments and institutional reforms in the mold industry has accelerated, but the overall level of design and manufacturing is much behind that of industrialized countries. Mainly in:

1. The industry's innovative ability is weak The mold industry is a technology-intensive and capital-intensive industry. With the progress of the times and the development of technology, there is an abnormal shortage of talents who can master and use new technologies. Advanced mold fitters and corporate management talents are also in short supply. Due to the poor efficiency of the mold enterprises and the lack of attention to scientific research and technological development, the mold industry as a whole has invested too little in research and development and technological research. The difficulties in the loans of private enterprises also affect the technological transformation of many enterprises, resulting in little progress in science and technology, and progress is not fast.

2. Insufficient overall industry efficiency Although many domestic companies have adopted advanced processing equipment, the overall level of equipment still lags behind that of foreign companies. In particular, the equipment's numerical control rate and CAD/CAM application coverage are lower than those of foreign companies. many. Due to institutional and financial reasons, the introduction of equipment is not complete, equipment and accessories are not supporting the phenomenon is widespread, the problem of low utilization of the equipment can not be resolved for a long time. The low level of equipment has brought problems such as too high a locksmith ratio in China's mold enterprises.

3. The degree of specialization, standardization, commercialization, and poor cooperation have long been affected by "big and full," "small and complete," and many mold companies are lagging behind. The professional production level of the mold is low, the specialization is not fine, and the degree of commercialization is also low. At present, the annual domestic production of molds and commercial molds only accounts for about 45%, and the rest is for self-production. Cooperation between mold companies is not good, it is difficult to complete the larger-scale mold set task. It lags behind many international standards.

The low level of standardization of molds and the low coverage of use of standard parts also have a great influence on the quality and cost of the molds. In particular, it has a great influence on the mold manufacturing cycle.

4, mold materials and mold-related technology Backward mold material performance, quality and variety often affect the mold quality, life expectancy and cost, domestic mold steel and foreign imports of steel have a big gap. Poor performance of plastics, plates, equipment, etc., also directly affects the improvement of mold level.

I. External environment analysis Foreign-funded enterprises do not choose joint ventures because core technologies do not want to evacuate. “Foreign-funded enterprises generally enter into two modes: First, they enter together with their supporting companies (ie, customers), which is characterized by professional services for a single customer, and a single mold type; the second is their own entry into China. Foreign investment mold companies invest in China, and its The purpose is to use China's cheap labor and cheap steel to make more profits.

The personage inside course of study introduces, in the foreign enterprise, the mould workshop is "secret workshop", the outsider cannot come close. To set up factories in China, foreign capital has both funds and independent technologies, and does not require joint ventures with Chinese companies. They are just to reduce labor costs. Moreover, they still put their designs abroad, and they spread their businesses in China through the Internet.

Second, the internal environment analysis 1, the domestic self-provision rate of less than 80%. Among them, there is oversupply of middle and low-grade molds, and the self-ration rate of middle-to-high-grade molds is less than 60%.

2. The organizational structure, product structure, technical structure, and import and export structure of the company are not reasonable enough. Most of China's mold manufacturing plants are self-produced tooling workshops (branches), and most of the professional mold factories are "large and complete" and "small and complete". Most of the foreign mold enterprises are "small and special" and "small and fine"; the proportion of self-produced and self-made molds is as high as 50%, and 70% of foreign molds are commercial molds. The proportion of large-scale, sophisticated, complex and long-life molds in the total domestic molds is only about 30%. More than 50% abroad. The ratio of imports and exports was 4.1:1 in 2003; the net import after import and export was US$1.03 billion, which is the country with the largest net import volume.

3. The level of mold products and the level of production technology are generally much lower than the international advanced level, and the mold production cycle is much longer than the international advanced level. The low level of product is mainly reflected in the precision, cavity surface roughness, life and the complexity of the mold; the low level of technology is mainly reflected in design, processing, process equipment and so on.

4, weak development capabilities, poor economic efficiency. The proportion of technicians in China’s mold enterprises is relatively low, and the level is also low. Do not attach importance to product development, often in a passive position in the market. The average annual output of molds for each worker in our country is about 10,000 U.S. dollars, and most of the developed countries in the mold industry are 15-20 million U.S. dollars, and some even reach 25-30 million U.S. dollars. The result is that China's mold enterprises have poor economic returns, and most of them have low profits. The state-owned enterprises have suffered a total loss and lack of stamina.

5, mold standardization level and mold standard parts use coverage is low. The use rate of mold standard parts in foreign advanced countries is over 70%, and the coverage of domestic mold standard parts is only about 45%.

6. Compared with the international advanced level, the management of mold enterprises is even worse than the backward technology. The backwardness of technology is easily discovered, and management is backward and easily overlooked. Most of the domestic mold enterprises still use the workshop management mode in the past. Really realize modern enterprise management is not much.