Last five years, prices have lowered head Screwdriver Bits. Some companies even down 40% -50%, national sales only reached 200 million, showing that overproduction culprit. Even more serious is that in the late 1980s, due to the market outlook optimistic estimates, key enterprises, the backbone of our tools continue to expand not only their own, but also cultivate a large number of joint-operated factory to increase production capacity. Later, most of these associates develop independently from the mother plant, plus some state-owned enterprises workers themselves "sea" factories, constitute our first tool of private, township enterprises. These enterprises in a more flexible mechanism, there was no state-owned enterprises to various historical burden, which could have become the tool industry reform and development of a new force.
Due to the talent, technology, equipment and management level so that the limitations of the concept, the majority of these enterprises are still a number of walking the old dilated, and intensified, just 10 years, the total jumped to one billion, species concentration In the Drill Bits, masonry drill bits, woodworking kits, calipers and other low-end products. Although the number is large, but the domestic market sales accounted for only about 30 percent of gross. Although due to the brand, quality reasons, these products at home and abroad have not entered the formal manufacturing tools sales system, but in our tool export market has caused a great impact.
Tool industry in China and abroad, the overall level of the gap in the reform and opening up 20 years later, is not reduced but increased, which we have to face the grim reality. Western countries, in the 1960s and 1970s, has completed a "post-industrial stage of development," the 1980s, gradually entered to develop information, biology, new energy and new materials and other high-tech industries as the representative of the knowledge economy or the new economic era, there has been a wave of high technology to transform traditional industries. In this major change in the machinery industry is one of its main means of processing tools products, made an unprecedented high standards. To sum up, that is, high-precision, high efficiency, high reliability, and specialization, information technology, auto technology, modern control and management techniques are rapidly and widely adopted, so that the machinery products and service level to a new level . And tool industry traditional standardization, universal, series production of the product development model fits generated great contradictions and conflicts.
Weakness in today's market, sales are sluggish, in fact the market demand structure in the adjustment, did not follow the production structure adjustment, there has been a structural weakness. The current technological revolution sweeping the globe, including tools being traditional manufacturing industry has brought tremendous impact and pressure for change, resulting in slow hardware industry-wide restructuring, the overall level of service stagnant and modern manufacturing industry demand for tools disconnect between increasingly serious, resulting in the ultimate tool industry into today's predicament.