In the current global landscape, China has emerged as a leading player in metal processing and manufacturing, becoming one of the largest hardware producers worldwide. With a massive domestic market and growing consumer demand, the country is witnessing significant development in its mold and tool industries. According to Luo Baihui, secretary-general of the International Model Association, molds play a crucial role in the broader hardware sector. During the 12th Five-Year Plan period, China faced both internal and external challenges, but its economy continued to grow rapidly. Despite uncertainties, the country's comparative advantages in the international mold market remain strong, and the domestic market is expected to maintain a positive outlook.
As more multinational companies set up operations in China, local hardware firms face increasing competition. In this environment, Chinese mold manufacturers must remain strategic, setting clear goals for sustainable growth. While profit maximization is an important objective, the ultimate aim should be creating value for customers and employees. This long-term vision ensures that companies not only survive but thrive in a competitive market.
The precision of hardware molds is continuously improving. Ten years ago, the standard was around 5 micrometers, but today it has reached 2 to 3 micrometers, with 1-micrometer molds on the horizon. This demands advanced finishing techniques and greater efficiency in production. As the industry evolves, multi-cavity and multi-functional composite molds are becoming more common, integrating tasks such as lamination, tapping, and riveting. These developments require higher-quality steel and more sophisticated manufacturing processes.
To navigate the challenges and opportunities ahead, China’s metal processing and mold companies must focus on modernizing their supply chains and enhancing operational efficiency. Developing large-scale business models, forming open circulation systems, and building efficient distribution platforms are essential steps. Additionally, fostering industrial clusters, strengthening technological innovation, and promoting brand development will help elevate the entire sector.
The integration of domestic and international trade, along with the use of e-commerce and digital platforms, can further boost the industry’s competitiveness. Strengthening cooperation within and outside the industry, sharing resources, and addressing complex challenges collectively will drive progress and ensure long-term success.
While China produces a large volume of low-cost, standard cutting tools, high-efficiency tools are still largely imported. For example, while U.S. markets see medium-sized twist drills priced at around $10, Chinese-made ones often sell for just $1. The automotive industry in China relies heavily on imported cutting tools, even from foreign-funded enterprises. This highlights the need for improvement in high-end tool production.
In 2004, China produced approximately 2.5 billion cutting tools, with 2 billion being exported as low-cost, basic tools. Although exports have increased, most remain in the mid-to-low range. As the demand for high-efficiency CNC machine tools grows, so too will the need for advanced cutting solutions. This shift presents both a challenge and an opportunity for the domestic tool industry.
Currently, China's tool supply chain is imbalanced, with high-end products mostly imported and low-end tools exported in large volumes. This situation needs urgent correction. Unlike developed countries that rely on high-efficiency tools, China still uses many standard tools, resulting in lower productivity. By focusing on innovation, quality, and strategic development, the country can transform its tool industry and achieve greater global competitiveness.
Guangdong Kinen Sanitary Ware Industrial Co.,Ltd. , https://www.kinengroup.com