There are common problems in Chinese foundry manufacturers

At present, a considerable number of foundry manufacturers have not cultivated their core competitiveness, seriously lack market competitiveness, passively cope with the competition, retreat step by step, and fall into the dilemma of survival. In addition to the historical legacy and objective environmental factors, the foundry itself mainly lacks the following “five forces”.

First, the products lack competitiveness. You and I have high-quality products. They have low technical content, low added value, no price advantage, no quality advantage, no characteristic advantage, so they have no competitive advantage. As a result, either the products are sold at a low price and at a loss, or the products are unsalable and overstocked, increasing the inventory, making it difficult for foundry manufacturers to organize efficient production.

Second, technology lacks innovation. The ability of scientific and technological innovation is poor, there are no high-tech talents, lack of market research and development, lagging concepts, lack of product renewal, replacement and process transformation plans to meet the needs of the market, insufficient investment in scientific research funds, backward scientific research means, outdated production technology and equipment, and the products produced are consistent for several years, old style and nothing new, On the verge of elimination.

Third, the mechanism lacks vitality. The organizational system and employment, personnel, distribution and other systems of foundry manufacturers are rigid, lacking the vitality of internal incentives and constraints. In terms of the leadership system and organizational facilities of foundry manufacturers, they do not meet the market requirements, and the operation mechanism is not in place.

Fourth, management lacks control. A considerable number of foundry manufacturers have outdated management concepts, backward management methods and management methods, which are manifested in extensive management. In some foundry manufacturers, formalism, dogmatism, empiricism and good man doctrine are prevalent. They prefer foundry manufacturers to suffer losses rather than offend others. Discipline is relaxed, style is bathing, and people are overstaffed. Weak basic management, inadequate professional management and lack of scientific and strict management.

Fifth, the strategy lacks sustainability. In many foundry factories, the serious short-term behavior leads to the lack of long-term development strategy. Although some have strategies, they are only oral strategies or strategies that lack the basis of scientific demonstration, and do not have the confidence and measures to ensure the real implementation of their development strategies. The strategies set this year will be changed beyond recognition next year, with great randomness and uncertainty. In fact, there is no strategy. As a result, the foundry manufacturers make blind decisions and follow-up with the tide, wasting a lot of human and material resources. In the end, they don’t have their own business characteristics. After their internal power is exhausted, they will decline or go bankrupt.

Only by solving the above problems can we realize the sustainable development of foundry manufacturers and the sustainable development of foundry industry.