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In the 1960s, China's hardware mold industry began to flourish in Dongguan, reaching its peak in the late 1980s. Back then, the entry barriers for the industry were extremely low—no advanced technology was required. With just 30,000 yuan, one could purchase some used equipment and start a small-scale metal mold workshop at home. Over the past four decades, the number of hardware and mold processing companies has grown beyond 10,000, with the majority still operating as labor-intensive small enterprises.
As the domestic hardware mold industry has continued to develop, competition among provinces has become increasingly intense. The industry is now facing issues of chaotic competition, with problems such as low product value, poor structural quality, and limited technological content becoming more evident.
Moreover, several factors are hindering the growth of the mold industry. One major issue is the supply of raw materials. Most molds in China are still made from steel, but this year’s steel market has experienced shortages. This scarcity poses a significant challenge for the industry, directly impacting the production and development of China’s mold sector.
Additionally, once products are manufactured, they need to be sold. Without a stable sales market, mold companies struggle to survive. Therefore, it is essential for the mold industry to strengthen its connections with both upstream suppliers and downstream customers. By expanding its industrial chain, the industry can ensure a steady supply of materials and a clear path for product distribution.
In any industrial chain, different sectors may operate independently but are closely linked. The mold industry is no exception. Its upstream sector includes the material suppliers, while the downstream consists of the end-users who rely on molds for their production. To achieve sustainable growth, the industry must better manage these relationships and work together to extend the value chain.
China is gradually transitioning from a mold-producing country to a global leader in die manufacturing, with strong corporate investment interest. However, for the industry to truly thrive, it must first understand and prioritize the importance of its relationship with both the upstream material suppliers and the downstream market demand. By developing coordinated strategies for upstream and downstream businesses, the mold industry can enhance its overall competitiveness and drive long-term development.