Lack of core competitiveness, the domestic CNC tool industry faces a huge threat

China's tool industry has been fully open to the outside world for a long time, and the domestic market has long realized the globalization of tool procurement. Foreign tool makers have entered the Chinese market for more than a decade. The sales network and technical service system have been fully established. There are offices in major cities in China, with more than 1,000 sales and technical service employees.
They have almost monopolized China's high-end tool market with its high-quality products, perfect technical services, and ever-decreasing product sales prices (now the price of imported tools has dropped to almost 2/3~1/2 of a decade ago). In the process of economic globalization, multinational tool companies have taken advantage of the increasingly obvious advantages of technology, resources and information services, and the strength of domestically produced tools is farther and farther.

Price killer
Due to the impact of the international financial crisis, Taiwan's tool industry has lost more than 80%. As a result, they began to hit the CNC tool market in the Mainland with low prices. Some of the tool prices are even lower than the price of domestic CNC tools. They are squeezed into the market with low profit and low cost strategies, and they are called price killers in the CNC tool market.

Crisis of Confidence
Due to long-term dependence on imports, the gap between domestic CNC tools and imported tools in terms of technology, service, quality and publicity, the importance of CNC tools in the final product quality of processed products, and other factors, domestic customers' trust in domestic CNC tools Very low. Often prefer to spend heavily on imports rather than risk saving money to buy domestic knives. After all, hundreds of thousands or even tens of millions of CNC machine tools have tens of dollars and hundreds of yuan of hourly lost work costs compared with tool purchase costs, a big difference. If you don't have full control, most users prefer to import tools. Automotive manufacturers and aerospace companies are typical examples. Today, when domestically produced tools are not mature enough, they will hardly provide opportunities for domestic tools to be tested on CNC production lines.

Competitive pressure
After joining the WTO, global procurement will enable foreign cutting tools to continue to enter the Chinese market, allowing customers to have more choices, and the development of domestic CNC tool manufacturers is more difficult.

Supplier dependence
The scale of production and operation of domestic CNC tool companies is too small, and there is no close integration of their own cutting tool industry chain. Especially the manufacturers of tool systems do not produce blades. Blade manufacturers do not produce tools, and they rely almost entirely on suppliers. Industry industry alliance in the true sense.

Lack of talent
CNC tools are technology-intensive, knowledge-intensive, and talent-intensive industries. Their development relies heavily on talents, especially when the company's production and operation scale is small. Domestic CNC tooling technical talents, management talents, marketing talents, and CNC machine tool operators are all scarce. The general training period is 3 to 5 years. However, colleges and universities do not take good responsibility in training CNC CNC machining and CNC tooling professionals. They all rely on the company to spend a long time to train, often with half the effort, and may not be able to retain talent.

In summary, the root cause of the gap between the overall comprehensive strength of China's machine tool industry and developed countries is the lack of core competitiveness.