With the vigorous guidance and support of national policies, along with my country’s transformation to the world’s cardan shaft power, the concentration of my country’s cardan shaft industry will further increase. With the unfolding of industry integration, especially in the context of the current financial crisis, market share has begun to gradually concentrate on a few advantageous companies, and the production concentration of the cardan shaft industry is gradually increasing. The increase in market concentration is conducive to the integration of industry resources and the realization of scale effects, and is conducive to the overall development of the universal shaft industry.
Steel is the most important raw material for China’s universal joint shaft manufacturing industry. Major steel plants are upstream suppliers in our industry. Changes in steel prices directly affect the purchase cost of raw materials for China’s universal joint shaft manufacturers. In addition to the impact of the macroeconomic trend, the steel market price rises and falls, steel companies are also another major force in steel price changes. Relatively speaking, the universal joint shaft industry has weak bargaining power on raw materials, and steel prices have a greater impact on the control of enterprise production costs. In addition, on the basis of the original numerous state-owned universal joint shaft manufacturers, private enterprises have sprung up and foreign-funded enterprises have rushed into the market. my country’s universal joint shaft market has formed a market structure of state-owned, private, and foreign-funded enterprises. The advantages of private large enterprise groups Will become more apparent.
In recent years, the world’s manufacturing industry has shifted to China, and the development of China’s automobile, machinery and other industries has stimulated the demand for cardan shafts. The cardan shaft industry is a perfectly competitive industry and the barriers to entry are not high. However, due to the flooding of low-end products in the universal joint shaft industry in China, the overall competitiveness of the industry is not strong, and it is difficult for new entrants to gain a foothold in the industry if they do not have considerable strength. Therefore, for existing cardan shaft enterprises, the entry of small and medium-sized enterprises The threat is not big.
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