Reduced.If the tool enterprise still produces the traditional standard tool primarily, then the sales volume will gradually shrink (some private small tool factory produces the traditional standard tool in large quantity, the big tool factory loses this part of the market gradually because of the high cost, unable to compete), will not have the development future.Therefore, hardware tools industry of our country must change concept, vigorously develop efficient and advanced tools of production, with domestic advanced efficient tool instead of foreign products, the back is imported cutter occupy this part of the market, attaches great importance to after-sales service production, only in this way, only promising tool for enterprises in China, to get the revitalization of tool industry in China.

The general situation of machinery manufacturing industry in recent years, China's manufacturing industry has achieved sustained and rapid development, China has become a manufacturing power: countries in the world are importing a large number of Chinese products, and China's exports, mechanical and electrical products have accounted for the majority.In the current economic cold wave and crisis, although the machinery industry has been greatly affected, but the total size and total output is only second to the United States, surpassing Japan, ranking the second in the world, the export has surpassed Germany, reaching the first in the world, in 2009, China's automobile output has surpassed the United States and ranked the first in the world.China has become a real world manufacturing power.China ranked third among the top 10 manufacturing powers in the 2010 white paper on global manufacturing.In this year's world machinery 500, the United States ranked first with 126 enterprises, Japan ranked second with 124 enterprises, and China ranked third with 77 enterprises.But none of the top 10 machines in the world this year were from China.Among the world's top 100 mechanical companies, China only made the list of 9.We should realize that China's manufacturing industry is big but not strong. Although it is a big manufacturing country, it cannot be called a strong manufacturing country.Take steel for example. We export a lot of cheap steel and import high value-added alloy steel.Machine tools are also exported cheap low - grade machine tools, while the import of expensive CNC and precision machine tools.

In recent years, although China's hardware tool industry has not small development, but far behind the development of machine tool industry.Most of the efficient and advanced cutting tools used in production are imported from abroad (including the cutting tools produced in China by foreign-funded enterprises).We also export a lot of cutting tools now, but mainly low - cost standard cutting tools.In 2004, China produced about 2.5 billion knives, of which 2 billion were cheap low-grade knives (most of which were exported), and the ones exported in the following years were still basically low-grade knives.In the U.S., medium-size twist drills cost about $10 each, while lower-end ones made in China cost as little as $1 and are used as hand tools.Our country now has the world scale first automobile industry, but the automobile industry from abroad introduces the efficient production line, USES the cutting tool 80% ~ 90% up to now is the import cutting tool (including the domestic foreign capital enterprise product).Now our country knife production supply and marketing situation is, high-end advanced knife products mainly rely on imports from abroad, and low-end knife products malignant expansion (most of the export), this situation must be changed as soon as possible.China's machinery manufacturing industry in the production of a large number of standard tools, and developed countries are a large number of efficient use of advanced tools, resulting in China's processing efficiency is far lower than foreign countries.Our country hardware tool factory still produces a large number of traditional standard cutters, a few small tool factory still produce a large number of low grade cutters, according to statistics, our country consumes the tool material of the whole world 40%, sale income accounts for the tool industry of whole world only however 12% ~ 15%.The gross profit rate of foreign tool enterprises is about 40%, while the profit of tool factories in China is very low, and some tool factories are still in the red.Now our country's tool factory, to mass production of traditional standard tools.From the perspective of the technological development trend of machinery manufacturing industry, the proportion of high-efficiency CNC machine tools in China's factories will increase year by year in the future, the demand for high-efficiency advanced cutting tools will increase rapidly, and the demand for traditional standard cutting tools will decrease year by year.