Metal stamping parts are now emerging as a promising opportunity in the hardware industry. As I observed recent trends among individual companies, it sparked some important reflections:

With increasing competition in the automatic lathe market, most hardware manufacturers are operating at full capacity. The profit margins across every stage of the supply chain are shrinking, and there’s less room for price cuts. As electricity costs rise, production expenses go up, but these costs are hard to pass on to downstream customers due to internal constraints. This is squeezing the profit margins of Dongguan hardware factories even further. The cycle of declining profits and rising costs has pushed many manufacturers to rethink their strategies. To grow sustainably and succeed in the long run, they need to find new markets and break away from traditional models. Relying solely on price competition won’t build real competitiveness, so innovation and product quality must become priorities. Companies are also rethinking their management approaches to ensure long-term stability and growth.

Meanwhile, many cities have developed marketplaces that lack specialization. These are often large but not high-end, with a wide range of products but no clear focus. This lack of differentiation leads to intense competition and limited growth potential. In contrast, a few specialized production areas across the country and internationally are showing strong development. These are the most dynamic nodes connecting local markets to the global economy. Such professional markets not only offer vast opportunities but also benefit from strong local industry integration and government support, making them more attractive than general markets.

Beyond industrial clusters, other regions are also evolving. First-tier cities remain mature, with each generation of market maintaining a certain scale. However, second- and third-tier cities still lag behind. Over the next three to five years, as urban planning advances, the development of hardware channels in these cities is expected to accelerate. For businesses looking to expand, setting up a store or finding an agent could be a smart move. Learning from successful examples like Shida Tools and entering the market early may offer significant returns. It's a time of transformation, and those who adapt quickly will have the best chance to thrive.