Today China's manufacturing industry encounters many difficulties, of which is the rising labor costs. Abrasives industry is a labor-intensive industry, which is particularly sensitive to the rise and fall of labor costs, especially for enterprises in the coastal area.
To satisfy the high requirements of employees on wages, companies need to buy social security and offer attractive benefits for employees...Without the advantages of low-cost labor, China's manufacturing industry has lost part of its competitiveness.
In addition to the labor costs, China's manufacturing industry is also facing other difficulties. In an economy forum, a famous economist Xu Xiaonian said: The challenge is the overall lower level of China's manufacturing industry, especially basic materials and processing technology. They still have big gap with international first-class enterprises. The gap is what makes China's product technology content low, and the phenomenon is widespread. Therefore, the price becomes competitive means.
Many abrasives enterprises also admit that they have to reduce the standard or try to simplify for competition on raw materials or production process. Although companies can save the costs from "unprofitable" in the short term, it also leads poor quality in the long run. These serious problems will cause serious obstacles to the future development of enterprises.
In fact, they understand that if they want to achieve sustainable development, it is necessary to achieve product differentiation and enhance the innovation ability of enterprises constantly, in order to enhance the core competitiveness of enterprises. But even if the enterprises have a change of mind, the change is also a slow process.