From January to April this year, batches of Jinhua Electric Power Tools 6115 were exported with a value of US$ 226 million. Batches and amounts decreased by 14.1% and 10.8% year-on-year, showing negative growth for the first time in four years. This is also the fifth consecutive month of decline since December last year, and electrical tools have become the largest electromechanical products in the city.
According to analysis, since the beginning of this year, Jinhua's export of electric tools has seen a “double drop†due to three main reasons: First, the EU sovereign debt crisis and the US economy have stagnated, resulting in a weaker market. Orders have decreased significantly compared to previous years, while Europe and North America have separately It accounts for 45% and 25% of the annual export of electric tools. Second, the rising costs of raw materials and labor caused by rising production costs. Last year, only employee wages increased by more than 25% from the previous year. Third, exchange rate shocks can easily cause exchange losses, and companies’ export risks increase.
In the face of the severe situation in the export of power tool products, Jinhua Entry-Exit Inspection and Quarantine Bureau actively implemented 36 measures to promote the development of private economy, and formulated measures to guide enterprises in opening up new markets in Eastern Europe, Latin America and the Middle East. Nowadays, the policy effect has emerged: From January to April, the export of electric tools to Brazil amounted to USD 8.07 million, which was a year-on-year increase of 21.6%; the export to Saudi Arabia was up 18.4% year-on-year.
Industry insiders predict that according to the seasonal rules of exporting companies, the peak of foreign orders is generally from April to June. Taking into account the time cycle of orders, production, and export, the peak of export will appear from July to October. Therefore, Companies generally expect the export situation to improve in the second half of the year.
According to analysis, since the beginning of this year, Jinhua's export of electric tools has seen a “double drop†due to three main reasons: First, the EU sovereign debt crisis and the US economy have stagnated, resulting in a weaker market. Orders have decreased significantly compared to previous years, while Europe and North America have separately It accounts for 45% and 25% of the annual export of electric tools. Second, the rising costs of raw materials and labor caused by rising production costs. Last year, only employee wages increased by more than 25% from the previous year. Third, exchange rate shocks can easily cause exchange losses, and companies’ export risks increase.
In the face of the severe situation in the export of power tool products, Jinhua Entry-Exit Inspection and Quarantine Bureau actively implemented 36 measures to promote the development of private economy, and formulated measures to guide enterprises in opening up new markets in Eastern Europe, Latin America and the Middle East. Nowadays, the policy effect has emerged: From January to April, the export of electric tools to Brazil amounted to USD 8.07 million, which was a year-on-year increase of 21.6%; the export to Saudi Arabia was up 18.4% year-on-year.
Industry insiders predict that according to the seasonal rules of exporting companies, the peak of foreign orders is generally from April to June. Taking into account the time cycle of orders, production, and export, the peak of export will appear from July to October. Therefore, Companies generally expect the export situation to improve in the second half of the year.
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