Traveling to the Water Poor, Sitting and Watching the Clouds-Jung Interviews Zhou Ruihua, General Manager of Suzhou Fulaike Precision Tools Co., Ltd.
At the CCMT exhibition in Nanjing in 2010, Zhou Ruihua, general manager of Suzhou Fulaike Precision Tools Co., Ltd., which focuses on the production of alloy cutting tools, talked about the current situation of "Made in China" and "foreign brands" in the market collision. Said that the company will expand the market share of the domestic demand market in the future. Today, more than two years later, when we visited again, Zhou Ruihua’s slightly exhausted state and verbal revelations could clearly feel the ravages of the industry’s “lowest”, and the management of small and medium-sized enterprises had to rethink and position themselves. Come out of another "dilemma".
The hardest-hit industry drags down growth.
"Before you came, I took a look at the 2012 financial statements, which dropped by about 13% from the previous year, and the profit margin is also much lower than before." Zhou Ruihua said that, looking at these application areas, for example, the polarization of the auto parts market is increasing, the large leading companies are growing vigorously, and the domestic second- and third-tier companies have almost no orders. Let's look at the construction machinery industry as the hardest hit area in 2012. Of our overall 13% decline, 7%-8% came from construction machinery. The communications industry and the aviation industry fell by 2% and 3% respectively, and other industries were basically unsatisfactory. It is worth mentioning that the growth in the semiconductor industry was completely unexpected. In terms of exports, this year's total exports are around US$1.2 million. Japan, which used to perform well, has now plummeted, and sales to German and American companies are very good.
According to Zhou Ruihua, Fulaike's cultivation market is established through sales information and brand reputation. "In the past few years, we have gained the favor of customers in more application fields by cultivating new markets. For example, the market share of construction machinery is very large. If we do not cultivate in other areas, the loss in 2012 may be even greater." Zhou Ruihua said that in the past, we did not intend to improve our reputation in the semiconductor industry. Last year, we started to increase the reputation of the Fulaike brand in these industries. The market has risen, and some of the downward trend has been diluted.
Key words for private enterprises to win: lean, efficient, team
With the great wave of global economic integration sweeping, Chinese companies will adopt more good equipment and turn to lean production in order to become more competitive. "The two new German machine tools that our company just imported are a step up from our previous ANCA five-axis machining center. The latest displacement accuracy can reach 2μ, and the operating system is NUM." Zhou Ruihua said, currently in China The market is still in a situation where industry development is not standardized and competition is disorderly. Small companies are not sophisticated, and large companies are not strong. On the other hand, some small German companies with more than a dozen people can do things to the extreme, while our small companies are not good. "Most of our equipment now is imported, almost all from Germany. Only the people are Chinese, and the advantage is not obvious. The development of enterprises needs high efficiency to support. Very hard work and brute force may not be able to make money. This is also the fundamental reason that prevents ordinary domestic enterprises from turning around in place. Enterprises must achieve lean production in order to be mixed."
From a macro point of view, the government and the market should give more opportunities to the private economy, and the entry level should be moderately lowered. This is also a way to inject fresh blood into the market. From the first brick in the initial stage of Fulaike's establishment to the present, Zhou Ruihua has experienced many unknown "difficulties" for private enterprises. "At present, the overall level of basic material technology in China should be improved as soon as possible, so that small and medium-sized enterprises like us can choose to replace imported raw materials in the manufacturing process. This substitute must be mature and stable. Being monopolized by imported brands, it is really difficult for "Made in China" to gain the right to speak." Zhou Ruihua appealed, and at the same time, we at Fulaike will also increase the credibility of our customers and enhance their trust in us. I have always said that I want to build a more experienced and stable production team and technical service team. This is because a stable production team and technical service team are the basis for rapid development. Our response speed, product quality, and technical services are firmly bound to become the cornerstone of the market. Our technical team formulates plans based on customer needs and combined with Fulaike's relevant tool expertise to make the overall more efficient, more stable and cost-optimized. These tasks are all arduous and long way to go. Although it is difficult to do, it must be done. Slowly develop, seek progress while steadily, and strive to improve efficiency.
"The situation in 2013 will still not be too good, and the overall environment has not improved so quickly." Zhou Ruihua said meaningfully that our work efficiency needs to exceed 20% of that of a large company in order to have opportunities, and to get opportunities in adversity. No small business can ignore "efficiency", and the products we provide must also have the ability to improve customer production efficiency, otherwise it will only be submerged in the process of industry reshuffle. "Look at the giant Sandvik Group of tool companies. They are from the suppression of raw materials to the final manufacturing of finished products, and even the development of equipment. They all have one-stop service. They also have a strong after-sales technical service team. Sandvik provides Chinese tool companies provide a good benchmark.” Although Fulaike is not a leading domestic tool company, Zhou Ruihua, who wants to contribute to Chinese manufacturing, is also constantly exploring on the road of his own business. Speaking of the company's green environmental protection in 2012, Zhou Ruihua said that it has done a lot. It is embodied in tool grinding. This not only makes up for our downward trend, but at the same time the concept of repeated reuse can also promote the recycling of earth resources, which is a general direction for green and environmental protection. "
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