China has become a major tool manufacturing hub and is continuously striving to enhance product quality. The industry is embracing advanced technology, modern equipment, and innovative methods across the board. Product standards are aligned with international ISO norms, and there's an increasing frequency of global industry exchanges. Moreover, the leadership and management capabilities of enterprises have significantly improved, becoming a key driver for the industry’s ongoing development.
According to customs data, in 2011, the export value of tool hardware reached $10.606 billion, marking a 26.7% year-on-year increase. Among the categories, small power tools saw exports rise by 22.3% to $2.614 billion; sawing products increased by 24.9% to $1.212 billion; measuring tools surged by 50% to $897 million; and garden tools climbed 16.8% to $563 million. Pliers and wrenches also showed strong growth, with respective increases of 28.3% and 24.1%, while tool kits rose 15.9% to $431 million.
On the import side, total tool imports reached $5.166 billion in 2011, up 21.9% from the previous year. Measuring tools were the largest import category at $2.673 billion, growing 26.4%. Small electric tools increased by 16.1% to $433 million, and sawing machines jumped 35.3% to $234 million. Tool kits and pliers also saw significant growth, with increases of 53.8% and 28.6% respectively.
Despite this, traditional hand tools like wrenches, pliers, and saws remain highly popular in overseas markets, with sustained growth rates around 20%. This indicates that Chinese hand tools are capturing a larger market share. Meanwhile, exports of small power tools, garden tools, and kits have also risen, showing that demand in Europe and the U.S. remains strong despite the financial crisis.
Interestingly, China leads globally in the production of wrenches and pliers, yet these items still account for nearly $150 million in imports. Measuring tools are another example—despite domestic leaders like Oriental Seiko and Great Wall Seiko, the import volume reached $2.673 billion in 2011, with a 26.4% increase. The trade deficit in this area was as high as $1.776 billion, which is rare in the broader hardware sector.
Industry experts note that most of China’s exports are OEM-based, with foreign brands rebranding domestically produced goods. This highlights the urgent need for Chinese companies to focus on brand building and market expansion to avoid being left with low profits while foreign brands reap the benefits.
Wang Qiuqin, secretary general of the Jinhua Tool Hardware Industry Association, noted that many local manufacturers were operating at full capacity in 2011, but faced challenges such as labor shortages and low profit margins. While a few large firms managed to achieve 20% profit, most remained below 10%.
Another issue is the lack of pricing power and market control due to weak brand recognition and limited distribution channels. Companies often compete on price, leading to a cycle of low profitability. Some believe that relying on volume rather than value may pose long-term risks, especially with rising competition from India and Taiwan.
Zhou Jihua, secretary general of the Tool Hardware Branch of the China National Hardware Association, believes the industry is on a healthy growth path. With continuous improvements in quality and market share, China’s tool industry is reshaping the global landscape. As long as it maintains steady progress, it will eventually become a true tool-making powerhouse.
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