| Since 2008, the widespread U.S. subprime crisis has aroused the biggest global financial crisis while the last biggest one was in 19th century. The global financial crisis has affected many fields from local to global, from developed countries to emerging and developing countries, from financial sector to tangible economy. Definitely, there is no exception for Fastener enterprises in Jiashan County. Owing to reduced orders, many of them cut production.
However, not all enterprises in Jiashan reduce production. Gem-Year Industrial Co., Ltd. is one of the enterprises that still maintain production. Owing to stable orders, Gem-Year doesn't cut production. Recently, it has got an order for fasteners from a new project of Shanghai-Hangzhou Express Railway. Along with the government expanding domestic demand, a lot of infrastructure projects get started, which means railway fasteners enjoy a great demand.
The products sell well, but they are not easy to produce. It's said that different from standard fasteners, railway fasteners require high technology, complex technique and guaranteed product quality. It depends on high quality of products in the railway fastener business. The old sales mode of Jiashan fastener enterprises doesn't meet the new requirements any longer.
Amid the crisis, good products still sell like hot cakes. Insiders indicate that it actually reflects the problem of overproduction due to the repeat production of low-end fasteners. In terms of output, China has become the largest fastener production country in the world. However, high-end fasteners still rely on imports. Over the past few years, the number of Jiashan fastener enterprises has increased by 20 every year. There is no denying that to some extent, some problems exist, such as repeat production of low-end products, like products and homogeneous competition.
The global financial crisis hits fastener enterprises on the one hand; on the other hand, it also strengthens their consciousness of scientific development. In fact, for Jiashan fastener enterprises, it's more urgent to speed product upgrade than ever. Just as what Shan Zheng said, director of Jiashan Bureau of Foreign Trade & Economic Cooperation, that the crisis is an opportunity for enterprises to adjust industrial structure, upgrade products, advance technology innovation, improve product level and strengthen competitive edge.
Influenced by global financial crisis, directed by policy measures, there is a upgrade trend in Jiashan fastener enterprises, which speeds from low-end to high-end fasteners, from standard to special fasteners. The government needs to strictly control low-level and repeat production. As to the enterprises which extend industrial chain and invest in differential products, the government should carry out different policies to them, giving additional support.
Author: Chen Bin
Source: Jiaxing Municipal Bureau of Foreign Trade & Economic Cooperation
Translated by Stephanie
www.chinaFastener.info
2009-1-22 15:30:00 |
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