Hexagon Socket Button Head,Hexagon Socket Button Head,button hex screw JIANGSU CHENG AO METAL TECHNOLOGY CO., LTD , https://www.chengaostainlesssteel.com
During the exhibition, in the face of an industry downturn that many companies are experiencing, the author identified three main factors contributing to the challenges in China's equipment manufacturing sector.
First, the global economic slowdown has significantly impacted the domestic industry. Gao Wei, General Manager of Tianjin Zhongma Robotics Co., Ltd., explained that the manufacturing sector is heavily influenced by international markets. With industries like automotive and steel facing difficulties, demand for related components has declined, directly affecting production equipment manufacturers. Experts also noted that while China’s equipment manufacturing has historically relied on cost advantages—such as low labor and raw material costs—these benefits are becoming less sustainable. As domestic wages rise and foreign demand weakens, foreign competitors with advanced technology are gaining ground, especially during global recessions.
Second, low profit margins have led to capital outflows. Many enterprises are pessimistic about the long-term prospects of the industry. Operating in the middle of the supply chain, these companies often struggle with limited added value. Some even operate at a loss, making it difficult to generate profits. One exhibitor emphasized that equipment manufacturing should be the backbone of the national economy, and despite low margins, it must not be handed over to foreign firms. The state, they argue, should support this critical sector rather than let it fend for itself. For instance, Ren Lianxiong from Tianjin Shenchuang Machinery Trading revealed that their core systems are mostly imported from Japan, leading to minimal profit despite high costs.
Third, technological limitations hinder progress. Zhang Lei from Shenzhen Dazu Laser Technology highlighted that domestic materials often fall short of required precision, forcing companies to import key components, which increases costs and dependency. This reliance on foreign technology makes it hard for Chinese firms to compete on both quality and price.
Financing issues further exacerbate the situation. Many companies face liquidity constraints, making expansion and R&D challenging. Hubei Sanhuan Forging Equipment Co., Ltd., for example, struggled to finance its new factory due to the European debt crisis and tight domestic credit policies. They had to mortgage their old factory to secure loans, but the funding gap remains significant. Similarly, Shandong Yixin Heavy Machinery found it difficult to secure loans for its new plant, despite urgent financial needs.
To address these challenges, some companies are calling for greater government support. First, establishing a national-level manufacturing technology center could help bridge the gap between research and industry. Second, better industry planning is needed to avoid redundant construction and protect intellectual property. Third, creating more diverse financing channels would provide much-needed support to small and medium-sized enterprises. By lowering thresholds and focusing on innovation-driven companies, the government can help the sector recover and grow.
Hexagon Socket Button Head