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In the global and Chinese tool markets, the versatility and demand for manual tools are truly astonishing. These tools are not only widely used in general industries but also play a crucial role in automotive maintenance. With a significant rise in car ownership over the past two years, the automotive aftermarket has experienced substantial growth, particularly in the repair and maintenance sector. According to recent data, China's total vehicle ownership has surpassed 35 million, with private cars exceeding 18 million. Moreover, new vehicles have accounted for 60% of this total over the last four years.
Looking ahead, China’s hardware tool industry is set to make significant progress in product innovation, standardization, and market expansion over the next five years. Five key development goals have been outlined:
First, the industry will focus on developing a wide range of tools, including electric, hand, measuring, laser distance, pneumatic, garden, and desktop tools. Special attention will be given to high-end assembly tools, automotive tools, construction hardware, and kitchen electrical devices. The aim is to accelerate the development of products with diverse specifications, standardized features, and independent intellectual property rights.
Second, the industry aims to achieve an export volume of $10 billion by 2015, with self-owned brand exports targeting 10–15%. It also plans to strengthen leading enterprises through optimized shareholding structures and encourage participation in international competition. High-energy consumption and polluting companies must be phased out. Advanced management systems will be introduced, and research and development investment should not fall below 5% of sales revenue. At least half of the patents filed or obtained should be applied practically. Additionally, one or two provincial or national engineering technology centers will be established to support innovation.
Third, large enterprises are encouraged to implement strict quality control measures, including setting up advanced laboratories equipped with professional testing instruments for daily quality monitoring.
Fourth, efforts will be made to enhance the global recognition of Chinese brands, aiming to bring more Chinese-made tools into premium foreign markets. At the same time, the domestic market for high-end products will be expanded.
Fifth, several well-known companies have emerged in the Chinese tool industry, such as Shandong Wendeng Power Tools Group and Zhejiang Ningbo Great Wall Precision Industry Co., Ltd. Industry leaders have shared their insights on future strategies. Yu Zhijiang, Chairman of Shandong Wendeng, emphasized that rising incomes and economic growth have increased the demand for premium and branded tools. This trend is vital for the long-term competitiveness of domestic tools.
Like other manufacturing sectors, the industry faces challenges such as rising labor costs, shortages of supporting products, limited power resources, and stricter environmental regulations. To overcome these, Wendeng plans to focus on its core products like wrenches, pliers, sockets, and kits, while upgrading production lines for efficiency and quality. Brand building is also a priority, with the company launching its own brand, MAXPOWER, under the Maipo label and investing RMB 100 million in brand development.
Additionally, establishing strong sales channels and effective brand promotion is essential. Companies can build their own distribution networks or work with agents. Engaging with the media and finding the right promotional strategies is crucial. After-sales service remains a major weakness in domestic enterprises, and improving it is vital for long-term success.
Finally, integrating production, education, and research will boost innovation. During the "Twelfth Five-Year Plan," several key technological projects will be implemented to support enterprise-led innovation and help them secure national and provincial funding for research and development.