2010 parts enterprises in China will face a crisis of rising costs
China's booming auto industry in the development of the times, as a vehicle upstream and downstream businesses – auto parts suppliers and automotive after-market, rising in tandem with development potential. With data predicted that in 2010 China's auto parts market will have 1.4 trillion in market value is expected. However, in the face of a huge market, cost pressures are increasingly troubled by parts enterprises.
For the products are mainly formed by the iron and steel automotive industry, the continued growth of production and sales makes it the demand for steel continues to increase. And its use as a large iron and steel are not reflected in the quantity, but rather reflected in the steel they use on a variety of high value-added. With the global economy, embarked on the recovery track, the future price of iron ore and so on will show rising trend, and transmitted to the iron and steel products, the domestic automotive steel prices will show a recovery trend, taking into account the relevant vehicle manufacturers and steel enterprises have signed a strategic agreement, the procurement of steel will not be a simple steel prices according to market price announced by the Executive, there is a price-free status of the city, so a comprehensive analysis to determine if the 2010 automobile steel prices rose in the 3-5% , will be mainly self-digestion by vehicle manufacturers, which will bring about the profitability of enterprises have a negative impact, but the overall look is still affordable range.
Of course, in addition to steel and iron ore, the non-ferrous metals in 2010 rose to varying degrees.
Auto parts enterprises the ability to vary the pressure against the cost. Two types of parts enterprises have the ability to pass cost pressure. A class is living in a relatively monopolistic market segments, such as the tire industry. The other is to enter vehicle matching system with a core intellectual property rights or the competitiveness of enterprises, such as Bosch, Denso, Japan and so on. For more of China's domestic auto parts enterprises, the cost pressure on them a major headache.
Conversion and reduce the cost pressures become an important component of enterprise development issues. Through the current national focus on enterprises and industrial parks cost control methods, summed up what HC's points: First, by brand, technology, opening up new markets differentiated business strategies, improve product value-added and profit margins; second, right industrial chain upstream investment or cooperation and seeking industrial synergies, avoid low-price competition, cost pressures to consumers; the three, uses the company's focus on cross-enterprise or a joint procurement of raw materials, and then the deployment of the various departments should be unified, not only can be done to a large number of purchase cost, but also decisions by analyzing market trends and raw material reserves, and thereby avoid the risk of price fluctuation; the four, in-house strict control costs and optimize management.
Overall, the cost of the crisis will further promote China's auto parts production enterprises in technological innovation. Only by developing high value-added products, China's auto parts in order to get rid of "production, technology, technology R & D is increasingly being marginalized" situation. On the other hand, the current cost pressures from the more urgent to reveal the "Made in China" to "Created in China" and the necessity and urgency.
I am an expert from Frbiz Site, usually analyzes all kind of industries situation, such as cable lock alarm , combination luggage lock.
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