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Houjie, a high-tech exporter of hardware tools, introduced to the “First Financial Dailyâ€: “The cost increases have been great since last year. The price of high-speed tool steel has increased by 8% to 12%, and the prices of oil, grinding wheels and other accessories have risen. 40% to 80%, after the promulgation and implementation of the new Labor Contract Law, the labor expenditure has increased by 18% to 20%.†Another large hardware tool company executive said: “Now almost everything needed for production is in The price increase, our company only spends coal, electricity and oil every year. In July, it paid 6 million yuan more than in June."
The export tax rebate rate for hardware tools has dropped from the original 13% to the current 5%. The rapid appreciation of the renminbi has further lowered the profit margin of enterprises.
Although the situation is grim, the data provided by a source of Houxiang Town Government shows that the total export value of Houxiang Town in the first half of the year was 145.7 million US dollars, nearly double the year-on-year growth. Wang Tingkai, director of the Houxiang Town Economic Service Center, said: "So far, there have been no major closures and production stoppages in the back lanes. There is no insolvency, and the economy has maintained an appropriate rate of development. The total profit and tax of the whole town in the first half of this year The year-on-year growth rate was about 21%, and sales increased by about 35% year-on-year. This year, the town achieved a total output value of 18 billion yuan, and a 30% increase is guaranteed."
Wang Tingkai’s confidence comes from three aspects. The first is that the rear lane began to grow from the manufacturing of drill bits to the steel needed to produce drill bits in the 1990s, and entered the new field of production of basic materials.
The price increase of steel did not cause the hardware and tools enterprises in the back lane to suffer too much. Wang Tangkai said: "The rear lane began to produce drill bits in the 1960s. In the 1990s, it extended to the steel needed for the production of drill bits. Now the output of tool steel reaches 90,000 to 100,000 tons a year. The steel used for the drill bit is satisfied. At the same time as the lane enterprises need, there are still 30,000 to 40,000 tons of exports every year, steel prices are rising, and the profit margin of this piece is increasing. The average profit rate of basic materials is about 20%."
Although steel prices have been rising since last year, the price of copper has been relatively stable. Electronic hardware tools with copper as the main material have become a new focus for the development of the rear lane economy. Wang Tingkai introduced that the rear-door electronic hardware mainly provides support for the electronics industry in Suzhou and other places, mainly focusing on video, audio, military products and other products. Many enterprises have reached an annual output value of 100 million to 200 million yuan. The annual output value of the town's electronics industry is about 3 billion yuan.
Through the extension of the industrial chain, the current industrial composition of the back lane has changed significantly compared with four years ago. Wang Tingkai said: "Four years ago, hardware tools accounted for 60% to 70% of the total output value of the town, and now only account for more than 30%; high-speed steel, medium-board and other basic materials accounted for less than the total output value of the town four years ago. 10%, now accounting for 40%; electronic hardware now accounts for more than 20% of the town's total output, four years ago, the proportion is very small."
Wang Tingkai said: "The extension of the industrial chain has made the back lane more capable of resisting economic fluctuations, and the east is not bright in the west."
The extension of the industrial chain and the diversification of the industrial structure cannot be ignored for the sustainable development of the regional economy. Wang Tingkai said: "Now there are 6 to 7 of 10 twist drills that are produced in the rear lane. 70% of China's drills are exported from the rear lane. The drill bit can be 5 billion, and even 10 billion or 20 billion. But it can't reach 50 billion, because the market demand is limited. We have to expand the total economic output to other industries. In addition to the high-speed tool port and medium board, we are still developing the paper industry and stainless steel. This is also a promising industry. ."
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