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The upcoming industry reshuffle in the power tools sector will accelerate further.
Release date:
2020-08-25
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“Competition has now reached a fiercely intense stage, and industry consolidation is set to accelerate,” said the head of an electric‑tool manufacturer in Zhejiang Province.
The significance of the Canton Fair as a “barometer” and “weathervane” for China’s foreign trade. At the 116th session of the Canton Fair, it was reported that the outlook for foreign trade is far from optimistic, with trading companies voicing mounting pressures: rising labor costs, rampant intellectual property infringement, and an unstable international environment…
An increasing number of foreign‑trade companies have come to recognize that, after bidding farewell to the era of rapid growth, China’s economic expansion has slowed, and this trend is set to become the “new normal.”
Rising labor costs have prompted numerous manufacturers to voice complaints, further eroding the competitiveness of Chinese products.
Ding Tao, sales manager at Ningbo Battery & Electrical Appliances Import & Export Company in Zhejiang Province, said, “The monthly salary of each of our workers has already risen to between 4,000 and 5,000 yuan.”
Frank Lakatos, Director of OEM Procurement at Germany’s Metabao, stated that the quality of Chinese products has been improving year after year. However, rising labor costs in China are outpacing increases in German labor costs, and end customers are also reluctant to accept higher product prices.
“More importantly, China’s innovation capacity remains relatively weak and needs to be further enhanced,” the buyer said.
“Exchange-rate volatility is also having a clear impact on us. If the renminbi continues to appreciate, a number of small businesses will disappear,” said Ding Tao.
An industry insider with many years of experience in foreign trade stated that China remains at the low end of the global industrial chain. As China’s demographic dividend gradually fades, exporting will become increasingly challenging in the future.
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Jiangsu Libite Electromechanical Tools Co., Ltd.
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