Innovation, a Key Point to the Development of the Fastener Industry (2009-06)

"The day when what you earn by selling a ton of screws can only afford a truss of£¬shallot is coming nearer."

The fastener industry can't bring up the ability to develop constantly without innovation. Whether it's a joint adventure, a state-owned enterprise or an enterprise run by individuals, it needs innovation. An enterprise should base on innovation. This is a fundamental activity to bring up the capability of constant development.

The reason why joint adventures need to be joined is to make full use of both sides' resources and combine their advantages. A foreign company has technique and managing resources. A Chinese adventure has not only labor resources but also raw materials. With these years' development, joint adventures' localization has reached a high proportion. Independent innovation will be stronger as the market is developing. Joint adventures will have its own brand, which belongs to the joint products.

For enterprises, independent innovation should be led by market to establish a brand new system. Besides, it particularly emphasizes that enterprises should be the body of innovating devotions, activities and results.

In these scores of years, the Central Government has made many policies in favor of the development of enterprises. However during the course of carrying them out, facts are different among different enterprises. From tax collection to the examination and approval of imported & exported equipments, and to the financial support, the tax rate of foreign-invested enterprises and joint enterprises is only 15%, while that of state-owned and individual-owned enterprises is 33%. With nowadays' producing level, it is impossible for Chinese fastener makers to compete with the transnational enterprises. Joint adventures, individually-owned companies and state-owned enterprises should be at the same start-line.

Every governmental branch ought to support and care for the fastener field. First of all, on the industrial policy guidance, highly-intensive and highly-precise fasteners as well as nonstandard-shaped objects should be the key products to develop. They also should be list in the state-developing plan. Meanwhile, the highly-intensive and highly-precise fastener makers should be list in the technically progressed enterprises after examined. Since they have a rather high request on equipment and technique, these enterprises' taxes should be reduced. Therefore, financial advantages and allowances should be given to technically-improved items. To shorten the distance to the international level, the import duty should be zero and 30% of the import tax should be drawbacked to external equipment makers.
Highly-intensive and highly-precise fasteners as well as nonstandard-shaped objects should be list in the state-level new products (the functions of a small screw should not be neglected). Policies should be carried out by the industrial associations. At the same time, tax ought to be reduced, so as to accelerate the birth of new products instead of importing.

Innovation, justice and harmony have much to do with the development of Chinese fastener industry. "Science and technology constitute a primary productive force. Independent innovation constitutes a primary competing power." Nowadays, independent innovation has become the strongest voice of the time. Chinese fastener industry is just around the corner. How to veer safely should be carefully thought of by every fastener maker.

Chinese fastener industry has stimulated certain abilities. The devotions of capital and human resources are surely important to accelerate the establishment of new fields. What's more significant is a technically and financially combined innovating system. Fastener industry's roughly increase has faced a big challenge. Lack of resources, environmental stress and low cost competition make it hard for quantitiedly increase to speed up its development.

The lackness of innovating system is the everlasting pain of Chinese fastener industry. Yes, independent innovation has become a common understanding of the whole society. It's not because of the call of the Central Government, but also because of the stress of public voices. As the market competition grows, "The day when what you earn by selling a ton of screws can only afford a truss of shallot is coming nearer." Independent innovation has become an absolute means for enterprises to reduce the cost and gain more interest.

Producing environment should be correctly realized by the fastener makers. What kind of environment are we in? Now when we open our minds and eyes, what couldn't been done five or ten years ago can been done. The time for Japanese, Korean and Taiwanese fastener industry to develop healthily is merely about 30 years. Chinese fastener industry is now facing a historical opportunity. We should have a strong sense of responsibility and crisis, and never be content of what have been achieved.

Translated by Yen
www.chinaFastener.biz
www.chinaFastener.info

Output is Money and Quality is Life (2009-03)

"Nowadays, in such a homogeneity era, the competition among fastener enterprises emphasizes more and more on the details of quality. The details determine the results. As the market is the same as the battlefield, any part or slight problem on quality may be the breakthrough that the rivals attack. Even worse, it may also cause the entire collapse. "

There is no doubt that output is money and quality is life for fastener industry.

Welding Screws (2008-10)