China’s general hardware industry has an optimistic outlook for the coming year. Despite the lingering effects of the economic slowdown and increased anti-dumping restrictions, suppliers are looking forward to better sales in 2010.
For exports, many are forecasting growth of at least 10 percent in the next 12 months. After seeing overseas demand for the line plummet more than 30 percent in the first three quarters of 2009, companies expect orders to pick up steadily as the economic recovery gains momentum.
To accelerate the rebound, makers are exploring opportunities in various end-user and geographic markets.
The following are some of the key trends we see in China’s general hardware industry as suppliers seek to achieve greater competitiveness in their chosen segments.
• The product selection will become more diversified. Aiming for better sales and margins, companies are releasing a greater number of high performance models for general and special applications. Many are looking into alternative materials and surface treatment to accomplish this.
• In terms of target destinations,the Asia-Pacific region, the MiddleEast, South America and Africa will gain increased importance. Several suppliers focusing previously on North America and the EU have begun redirecting efforts to these areas in past months when orders from their two traditional markets slowed down. For the fastener sector, the anti dumping duties were another factor that encouraged the shift.
• A number of manufacturers will strengthen their foothold in the domestic market as well. Several began looking within China to offset the decline in overseas orders. They were encouraged to further expansion at home as consumption of general hardware surged with the government’s stimulus plan.
• North America and the euro zone, however, will remain key targets. Although demand is weaker, it is still considerably large and is expected to become stronger as major economies recover. In the nine-month period ending September 2009, the two markets accounted for more than 40 percent of China’s export revenue from general hardware.
• Maintaining competitive prices will become more challenging in the months ahead with the rising cost of metal and other key manufacturing inputs. To minimize adjustments, suppliers will be enhancing operating efficiency and generating cost savings.
The above is extracted from the Executive Summary of China Sourcing Report:General Hardware
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/general-hardware
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