The low-end competition of machine tool companies has become a vicious market

The machine tool is different from the ordinary daily consumer goods, its production quantity and enterprise development scale, should be more cautious in planning and implementation. The former Director of the State Bureau of Machine Tools and Tools of the State Administration of Industry and Machinery, Liang Xunqi, once said that CNC machine tools are the commodities most closely associated with the user's individual needs in investment products, and their production and business models are multi-category, small-batch, tailor-made and complete sets of supply. The effective organization scale and form of the entire machine tool industry is a combination of professional and short-term companies.

China's machine tool industry has been at the low end of the industry because of its late start and lack of professionals. Currently, in many areas, it still has a heavy reliance on imported CNC machine tools. Training professional talents and increasing the efforts in machine tool R&D are making efforts to change this situation. However, due to the good situation in the past few years, low-end machine tools have increased a large number of companies to enter the market, resulting in the current price war due to market demand saturation, excess production capacity. According to editorial analysis, this phenomenon should arouse the attention of relevant departments, correctly guide the development of the market, and avoid the existence of vicious competition. The price war will enable enterprises to further take care of R&D capabilities, and then fall into a vicious circle and be trapped by vicious competition.

In the environment where the prices of raw materials have risen sharply, the machine tool industry, whose profits were not high, has not had a good day. Production costs have also increased by about 10% to 20%. If the impact of the price war, it will certainly affect the mood of the industry, reduce R & D passion, the brand will only decline.

The price war is a bad style. It will result in a decline in corporate profits, and even result in the collapse of a large number of enterprises and the loss of the entire industry. Disrupt the market order, seriously damaged the overall image of the industry development and economic environment, resulting in a decline in the interests of the entire industry. In order to make up for the losses caused by product price cuts, companies can easily reduce costs by cutting corners and other means. This will inevitably result in a decline in product quality and damage the company's own credibility. The price war may not only have no effect in seizing the market, but instead smashed its own brand and made the product in the market fail. Because the company has no profit or even run at a loss, the enthusiasm of the employees is not high, and the company is bound to fall into recession.

At present, the source of funds for technological upgrades and product structure adjustments of enterprises is mainly self-accumulated. However, enterprises have no ability to invest funds for technical upgrades and product structure adjustments, and that is, some enterprises rely on bank loans for technical upgrading. And the adjustment of product structure, but also unable to pay the principal and interest of the bank, and finally dragged the company to death. Due to the decline in the price of machine tools, the price of functional components will be depressed by the host manufacturers. Each price reduction of the machine tool will be transmitted to the downstream machine tool accessories and accessories manufacturers, so that the downstream manufacturers can not develop new functional components, which is not conducive to the technical upgrading of functional components throughout the industry.