Analysis on the current situation of small and med

2022-05-18
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Analysis on the current situation of small and medium-sized bearing manufacturing enterprises in China

China's bearing industry is an industry with low production concentration. At present, there are more than 1400 Bearing Enterprises above Designated Size, mainly concentrated in Wafangdian, Luoyang, Zhejiang, Jiangsu, Shandong and other regions in Liaoning. It has initially formed Wafangdian region to produce medium and large bearings, Jiangsu and Zhejiang region to produce micro and small bearings, and Luoyang region to produce extra large bearings and bearing rollers, Shandong is a regional industrial cluster that produces bearing parts such as steel balls and cages. Among the more than 1400 bearing production enterprises, the main business income of enterprises such as WA, ha, Luo and Wanxiang Qianchao, Zhejiang Tianma and renben group is more than 1 billion yuan, and most of the rest are small and medium-sized bearing enterprises

in the stage of rapid economic development, we all live well, from nothing to something, from small to large, from weak to strong, and continue to develop along this track. However, since the beginning of 2008, the situation has been reversed. The RMB has been appreciating continuously, the labor cost has risen, the promulgation and implementation of the new labor contract law, the price of raw materials has risen, the difficulty of loans has increased, the financial crisis sweeping the world, the sharp decline of market demand, and many factors, like a flood, are threatening. Those with poor water properties are drowned, and those with little water properties can still struggle for a while. Those with good water properties are not worried for the time being, But I don't know where I can swim. Only those who have prepared the ship in advance can deal with it calmly. However, the vast majority of enterprises have not yet prepared for this, especially small and medium-sized bearing enterprises. Due to their weak ability to resist risks, they are also more impacted

I. crisis from the market

the subprime mortgage crisis in the United States quickly spread to the whole world like an earthquake wave. The European and American markets are depressed and the procurement volume has fallen sharply. Affected by it, the eleven BRICs countries (BRIC and Vista) are also in danger. It was originally thought that China, India, Russia, Brazil, Eastern Europe and Southeast Asia are developing countries with huge market potential and large space for self-development, which will not change significantly due to external influence, but this is not the case. The integration of the world economy has been a loss for all and a prosperity for all. The hot demand situation ended in June this year, and the cold winter began in July. The number of new orders in the market decreased sharply by 50% or even lower; The delivery of the ordered products that have been produced is delayed. The customer's reason is that the inventory is squeezed too much, cannot be sold, and the return of funds is slow. Domestic and foreign markets are showing the same situation

II. Pressure from competitors

whether manufacturers of small bearings or medium and large bearings, the homogenization of products is quite serious and occupy the same market. Take Wafangdian City with a total urban and rural population of less than 1 million as an example, more than 300 large and small bearing enterprises basically use the same equipment, the same technology, the same process and the same supporting parts to produce the same products, Enter the same market, but the share is different. When the demand is strong, they are safe with each other. They only need to drive full horsepower to produce, and the products don't worry about sales. When the demand decreases sharply, everyone will compete to reduce the price, change ways to reduce costs, do not hesitate to cut corners, vicious competition, maintain meager profits or even no profits, and some enterprises finally reach the state of closing down at a loss. This situation continues to unfold and intensifies

Since 2001, China's economy has maintained double-digit high-speed growth. During this period, many small and medium-sized bearing enterprises have been bred and created. Small factories have become larger and large factories have become stronger. Many small bosses enjoy the feast of economic development and take it for granted that they are born with the material to do big things and become what they do, so their desire continues to expand, There is an impulse of blind investment. The scale of investment is increasing. Expand or build new plants and purchase new equipment. Especially from 2006 to 2008, about 70% of enterprises have expanded in different scales, and the source of investment mainly depends on self raised funds and loans. Most of the money made by enterprise owners has been used to invest in expanding reproduction. However, in the second half of 2008, the market situation has taken a sharp turn for the worse, the number of orders with grounding words or grounding marks has decreased, the inventory has increased, the return of funds has been actively explored, the cage has been slow, the bad debts have increased, the procurement cost has increased, the labor cost has increased, and the difficulty of new loans has increased. Many bearing enterprises are seriously troubled by funds and suffer from unspeakable suffering, which has continuously triggered the tide of shutdown and bankruptcy

IV. pressure of talent shortage

in order to develop healthily, an enterprise must take into account five aspects of talent allocation, namely market, production, technology, quality and finance. If the right people can be found in these five aspects and the ability is strong, the enterprise can develop rapidly. Even if there are three aspects, the enterprise will develop healthily. However, the current situation is that many small and medium-sized bearing enterprises are family enterprises. The boss has comprehensive management, and his immediate family members at least control the market, production and finance. It is difficult to say that these immediate family members are more capable in these aspects. In recent years, everyone has been expanding and gradually realized that Dr. Michael zobel, the person in charge of HPM, mentioned the importance of talents at the press conference before K exhibition, but it's good to find capable people in one or two aspects, and the technology and quality are in a relatively weak position. Therefore, there are always short boards, even several short boards, in the whole management link

v. technology is relatively backward

China is a large manufacturing country of rolling bearings, but most of the products manufactured belong to medium and low-end products, mainly due to backward R & D capacity, backward equipment level and backward technology. Machining equipment is basically single machine operation, low efficiency, and the machining accuracy fluctuates with the proficiency of operators, so the accuracy of bearings cannot be guaranteed. These products cannot enter the occasions with high requirements for supporting accuracy. The bearings produced are basically of ordinary grade and can only be applied to equipment with low precision requirements. Where the accuracy of supporting equipment is required to be high, these bearings are basically rejected. Customers prefer to spend high prices to use foreign well-known brand bearings, such as rolled steel sheet. If the accuracy of bearings can not meet the requirements, qualified steel sheet can not be produced

with the continuous progress of technology, the market has higher and higher requirements for product quality and grade. Most small and medium-sized bearing enterprises produce a large number of P0 ordinary bearings, which increasingly lose their market competitive advantage and have no profit space. In export trade, it shows low grade and low price

VI. numbness of quality consciousness

in the overheated development stage of economy, as long as there is production, there is demand. It is often seen that customers urgently urge goods and salesmen compete for resources. Strong demand leads to a weak sense of quality. Poor raw materials can also be used as bearings, and unqualified products can also be sold. Fierce competition makes people more willing to adopt price war, work hard on cost, shoddy and shoddy, unwilling to work hard, unwilling to make real efforts on quality, and quality often gives way to speed and quantity

The promulgation and implementation of the new labor contract law has increased the labor cost of enterprises. Before the implementation of the law, many small and medium-sized bearing enterprises generally did not pay various social insurance for their employees, but now enterprises must pay for their employees, so the labor cost of enterprises will increase by 20%. With the rapid rise of prices this year, the wages of employees have also been generally increased, and the labor cost caused by the above two aspects can rise by more than 30%

VIII. Instability of labor resources

due to the rapid industrialization process in recent years, which has driven the strong demand for bearings, many small bearing factories have been born, and the original small bearing factories have also expanded their scale and become medium-sized bearing factories. Everyone is producing at a fast pace, so labor resources are in short supply. In order to compete for labor resources, especially skilled labor, each family has tried their best to offer high prices, The attraction of the outside world dazzles many on-the-job employees. As more small and medium-sized bearing enterprises do not pay labor insurance for their employees or sign labor contracts, there is no concern or cost for the mobility of employees, the mobility of employees is very large. The resignation of some skilled jobs or skilled workers often brings great trouble to their work

IX. fluctuation of raw material prices

the sharp rise in the price of imported iron ore triggered a sharp rise in the price of bearing steel, which rose frequently, and the price of bearing also rose continuously. From January to June 2008, the price of bearing steel increased nine times, stabilized for a month in July, and reversed from August, but the price fell sharply. From August to October, the price fell five times. In such a short time, The price of steel fluctuates up and down, and the price of bearing fluctuates up and down. The manufacturing of bearings has a cycle. Generally, the cycle should be two to three months. When the price keeps rising, the price of raw materials has risen before it has time to purchase, which increases the manufacturing cost. In order to fulfill the contract, the manufacturer has to supply according to the order price; When the price drops, the product has not been produced, and the market price is already lower than the early order price, the customer forces the manufacturer to reduce the price, and the cost occurs at the high point. The price reduction means the loss of profits. The manufacturer is really in a dilemma and can't balance

X. pressure of exchange rate changes

from the implementation of the exchange rate reform to October this year, in less than two years, the RMB appreciated by 15.3% against the US dollar, almost 1% every month, which is a great loss of profits for enterprises' exports. Generally, the delivery cycle of orders is 2 to 3 months, and the settlement cycle is 45 to 60 days, that is, the cycle from order confirmation to payment recovery is about 3 to 5 months. If the loss of exchange rate is not considered in advance, This will be a big loss

foreign markets are also facing the pressure of exchange rate instability. The exchange rates of Russia, India and South Korea all depreciated by more than 30% this month, which has seriously affected their imports. These markets are the main export markets of China's bearings

Xi. Weak management

the purchase of raw materials is basically the responsibility of the boss's relatives, who are responsible for the selection and pricing of channels. The quality assurance department does not supervise the channels and quality, but only depends on the purchaser's personal preferences and judgment standards

production management is not standardized, there is no scientific plan, and ERP management is generally not implemented. The scale can be scheduled when the scale is small. If the scale is slightly expanded, there will be many loopholes. Either the production is not produced on time, the plan is careless, there is no production scheduling at all, or there is no sufficient production, resulting in continuous complaints from customers

although most manufacturers can provide ISO9001 quality system certification, how many operate according to the quality system? Certificates are basically bought with money. Without a complete quality management system, there is great uncertainty in quality assurance

the financial management of the enterprise is weaker, the financial personnel lack professional knowledge, there is no way to effectively control the cost, and there is no data of strategic value for analysis and decision-making

eleven difficulties of small and medium-sized bearing enterprises are analyzed, especially in the current situation

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