Hardware Industry Steadily Increases Production Capacity

The Chinese hardware industry has experienced steady growth over the years. In the past, the overall level of the industry was not very high, with many small and medium-sized enterprises operating from modest workshops. However, in recent years, significant changes have taken place. One major shift is the improvement in personnel quality—today, some of the leading figures in the industry, such as the head of China Hardware City, the largest hardware market in the country, hold advanced degrees like Ph.D. and postdoctoral positions. Another key development is the enhancement of production processes and management systems. Companies like Great Wall Precision have raised their standards to international levels, showing how far the sector has come. Despite these improvements, the domestic production process still varies widely. Many foreign companies have set up manufacturing bases in China, and several multinational firms have entered the mainland market, bringing with them advanced technologies and management practices. Currently, the industry is in an upgrading phase, moving from mid-to-low-end products to a greater focus on high-quality, high-value goods. This transition is beneficial for long-term development, as it brings along advanced foreign techniques and models during the transfer of production from abroad to China. Traditionally, the hardware sector has focused on tools, including manual, hydraulic, and power tools, which have seen rapid development. Construction and decoration hardware also continue to evolve quickly. Meanwhile, there's a huge demand for parts and components. For example, a small processing plant in Handan, Hebei, may lag in production but has a nationwide sales force exceeding 100,000 people. After more than a decade of steady growth, China has become the world's largest producer of hardware products, with exports increasing each year. The largest export category is tools, valued at $5.34 billion, followed by construction hardware at $4.34 billion. Tap exports reached $2.23 billion, and lock exports hit $680 million. The main export destinations include the U.S., Japan, Europe, and South Korea. The industry’s annual export growth rate is around 8%, and last year, hardware exports surpassed $5 billion, placing it third among light industries. With rising manufacturing capabilities and expanded production capacity, China’s hardware sector is expected to grow by over 10% annually for the next five years. In the first ten months of this year alone, the import and export volume of hardware and electromechanical products exceeded $500 billion, with a trade surplus of $7.06 billion, accounting for 64% of the national trade surplus during the same period.