Production concentration ratio associated with China bearing market is not substantial. There are more compared to 1, 400 showing enterprises that have a certain scale in our country. They usually are mainly in Liaoning Wafangdian, Luoyang metropolis, Zhejiang Province, Jiangsu Province, and Shandong Province, etc. And even these different locations formed their own business clusters. For example , the region of Wafangdian produces large in addition to medium- sized bearings, Jiangsu and Zhejiang provinces mainly create miniature bearings, in addition to Shandong Province creates steel balls and even cages. Among these 1, 400 bearing enterprises, the majority are the small and medium sized bearing enterprises except intended for fewer big types such as the ZWZ, the C&U Group, and so on.
Despite the fact that those small and medium sized bearing enterprises develop quickly, they still encounter many difficulties. Reasons are various. We will have a basic view of these people.
Firstly, the bearing industries are seriously impacted by typically the financial crisis. Beneath hub bearing regarding the crisis, completely new orders decreased significantly. And the capital returned slowly. Typically the same situation emerged in both typically the domestic and international market.
Secondly, competition among counterparts is extremely fierce. Both keeping manufacturers that manufacture large sized bearings and manufacturers that will produce small bearings sell their items to the same marketplace. Besides, their items are quite comparable which will lead to the aggressive competition if the needs are decreased. This particular will obviously have a very negative impact about the bearing sector.
Thirdly, they face the pressure of workers shortages. In purchase to have a new healthy development, companies must be balanced with talents within five aspects. Individuals are market, creation, technology, quality and financial. If the company has typically the right personnel in these five areas, it will create rapidly. Otherwise, it will be pretty hard to create inside a long expression.
Fourthly, the technology is relatively backward. China is the main country developing rolling bearings. Yet most products usually are low-end. This is usually due to the particular low level from the R & G capability, the in reverse machining equipments along with the backward technology, etc . As an outcome, the bearing accuracy can not always be guaranteed. And these types of products can only be used in typically the less precision products. As technology advances, the market has more requirements within the merchandise quality and level. Therefore, the P0 level plain bearings produced by small , and medium bearing enterprises become less competitive in the market.
Fifthly, many bearing manufacturers lack the sense of top quality. In face of the intense competition, many companies are more willing to adopt a “price war”. They shell out less attention around the quality of items, and use the particular shoddy products alternatively of the superior quality ones.