Power Tools Market warmer
Recently, the China Electrical Equipment Industrial Association, Electric Tool Branch of the Secretary-General Chang Chuan-fu said that the second half of power tools market in 2009 has been warmer, but the overall situation remains grim. The domestic market basically flat over the same period in 2008, but the market will continue to brand is good, the quality of a good electric tool tilt. Export growth will remain negative in the second half of the decline would be slightly lower than in the first half.
Increasing demand from the domestic market
ZHANG Chuan-fu said that the industry should focus on the State 4 trillion yuan of funds. In fact, from the first half of 2009, many companies have attached great importance to our country against the international financial crisis and taken to expand domestic demand policies. As the investment effect of the delayed impact of these investments will be big moves in the second half gradually emerging new market demands.
Therefore, the electric tool businesses should focus on the railway (including the Beijing-Shanghai high-speed rail), roads, bridges, airports, terminals, and power facilities, diversion, urban rail transport, urban infrastructure construction projects, take the initiative and in-depth investigations studies to understand these projects the demand for electric tools timely development of new products to meet the construction needs of power tools with well-known international brand competition.
In addition, according to the branch prediction, access to 5,6 months, the market demand into the off-season, mainly due to power tools dealers are busy digesting the first quarter of inventory. To 9,10 months, the market may be a new round of peak demand. However, this is a much smaller purchase amount to Biyijidu.
Experts suggest that companies can not be immediate improvement in power tool production situation is slightly confused by the relaxed requirement. Enterprises should make full use of the various preferential policies given by the Government, such as credit, capital, export risk guarantees. At the same time, we must attach importance to and fight for the Government on new product development, support in terms of standardization efforts, and make scientific and technological achievements of the declarations.
To avoid operational risks
First half of 2009, exports increased risk of loans in arrears, and even foreign buyers due to the insolvency caused by the phenomenon of increased unfunded loans were given to the electric tool export companies created new difficulties. ZHANG Chuan-fu that such export risks will continue. While national authorities have also stepped up to avoid the risk of enterprise help, but after all, businesses must face the risk, so it should pay special attention to credit the funds the importer can not be blindly signing, but not blindly shipment, so as to avoid unnecessary losses.
From the actual operation of foreign trade and exports of view, in the “lack of money” situation, the value of export products more mid-range products, for low-grade and high-end products, the market demand as before.
For example, many enterprises, especially foreign-funded enterprises developed tools for lithium batteries, although the quality is good, but because of high prices, market-driven rather difficult. At the same time, a multi-purpose multi-functional machines, efficient tools, but also by the market. In this regard, a number of qualified electric tool business to increase R & D and production efforts and achieved some success.
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