Analysis: It is imperative for hardware industry to upgrade

Once oil prices rise again, for hardware companies that use refined oil as raw materials, this means that production and operating costs will increase again, and high oil prices will increase the pressure on hardware companies in the short term. Judging from the relationship between crude oil prices and value, oil prices have been significantly higher than the marginal cost of production in the hardware industry. Due to fierce competition, the hardware industry has a poor ability to conduct downstream transmissions. However, high oil prices directly increase production costs, and the industry's gross profit is rapidly being squeezed by high oil prices. The continuing high oil prices have caused the continuous increase in the cost of oil for the hardware industry and have had a profound impact on the development of the hardware industry. "A few days ago, in the Hardware City, Hu Mou, who has been selling hardware tools for many years, said.

It is reported that this time the rise in oil prices will directly lead to a few percent increase in the cost of hardware companies. For those high energy-consuming hardware companies, the cost pressure will be even greater. Rising oil prices will trigger a series of rising raw material prices. The production costs of companies will increase indefinitely, posing severe challenges to the survival and competition of companies. With the step-by-step increase in refined oil prices, companies will be forced to adjust their industrial structure and save energy and reduce emissions. With the hands of the market to promote industrial upgrading and eliminate high energy-consuming industries.

In addition, the rise in oil prices has virtually increased the logistics costs of hardware companies. It is understood that the oil price accounts for one-third of the hardware company's logistics costs, hardware companies spend the cost of logistics costs on the enterprise are not infrequent, therefore, the oil price increase has a great impact on the logistics and transportation of hardware companies.

During the author's visit, many sellers frankly stated that rising oil prices are not just the only factor that plagues the development of the company. In the face of soaring energy prices and pressures such as rising labor costs, *** appreciation, and power shortages, traditional hardware processing companies are experiencing “labor pains” in product upgrades and structural adjustments. Anti-theft door dealer Li told the author: "Although the country has taken various measures to stimulate domestic demand and stabilize foreign demand, it has also issued a series of measures such as raising export tax rebates, but after all, the impact is limited, and not all hardware companies are benefiting. As for national policy, therefore, companies must pay attention to their own development in order to achieve long-term development, promote the adjustment of industrial structure of enterprises, and accelerate the upgrading and transformation of product structure through strengthening technology research and development and innovation.” Adjusting the economic structure of hardware industry and improving the market competition of hardware products It has become imperative to speed up the upgrading of the hardware industry.