Bowang Town is located at the easternmost tip of Dangtu County, Maanshan City, Anhui Province. It enjoys the reputation of “China’s famous knife town†and “the hometown of Chinese machine tool knives†because it covers only 133 square kilometers of town. There are more than 30 machine tool companies and more than 200 tool companies. In recent years, Bowang Town has an annual industrial output value of more than 4 billion yuan, a profit and tax of more than 800 million yuan, and a product export of more than 50 million US dollars. The machine tool industry is so developed here, not only is Anhui unique, but also rare in the country.
Unique town sales model
The machine tool industry in Bowang Town, Dangtu County, Anhui Province has been developing for a long time. As early as the 1970s, some simple mechanical parts factories began to make simple machine tools to solve the problems of production equipment, and gradually developed into shearing machines and bending machines, which were very popular after being put on the market. In order to open the market and expand sales, the company hired local flexible and hands-on personnel to help sales. These people went to all parts of the country with product brochures and even samples to promote products and bridge the gap between enterprises and users. At that time, the enterprises in Bowang Town put the sales in the first place in the order of “sales for saleâ€. The company hired a large number of sales personnel, often 100 people produced and 1000 people sold outside.
Local companies implement flexible sales policies for sales personnel, and sales personnel do not take fixed wages, only sales commissions. This approach has greatly mobilized the enthusiasm of sales staff. Some people describe them as "running thousands of miles, entering thousands of households, saying a thousand words, eating thousands of hardships", but not too much. The flexible sales policy has made some sales people rich. With the capital, they also set up factories to produce machine tools and knives, which made the machine tool and tool industry prosper.
The hometown of machine tools has begun to take shape
Into Bowang Town, the first impression is that there are enterprises everywhere. At present, Bowang Town has formed three pillar industries of blade mould, machine tool and road construction machinery parts production, and there are more than 470 industrial enterprises, of which annual sales income 60 enterprises with an excess of 5 million yuan, 39 enterprises with self-operated export rights, and nearly 20 foreign exchange-making enterprises, the comprehensive strength of the town has been significantly enhanced.
In recent years, the machine tool enterprises in Bowang Town have implemented the scientific development concept and attached importance to the new industrialization road. Some companies have invested heavily in new plants, upgrading equipment and adopting advanced technologies. For example, companies such as Central Asia and China and Germany have built thousands to 10,000 square meters of factory buildings, purchased advanced production equipment and developed CNC machine tools. The cutting machines produced by the alliance company and the blades produced by Jinhai Company have reached the domestic leading level. A total of 8 products in the town were rated as exemption products, 3 products were rated as provincial famous brand products, more than 40 enterprises passed the ISO9000 quality system certification, and more than 20 enterprises obtained self-operated export management rights.
The government creates a development environment based on the situation
At the same time that machine tools and tool companies are generally developed, the Dangtu County Government and the Bowang Town Government have made great efforts to create a favorable environment for enterprise development. Investing a large amount of funds to build public facilities; formulating and implementing preferential policies such as investment promotion, VAT return, and landless farmers' protection to encourage enterprise development; to help enterprises solve the problem of insufficient funds, the town government also led the establishment of the Bowang Town Economic Development Credit Financing Association. The insurance center has won hundreds of millions of funds for enterprises; in order to support the technological progress of enterprises and better serve the enterprises, it also supports the establishment of the Machinery Research Institute, the wear-resistant alloy research institute, the heat-resistant tool steel research institute, and the heat treatment center; In order to standardize business operations and safeguard the legitimate rights and interests of enterprises, the town government also led the establishment of the Federation of Industry and Commerce.
Due to the external factors, the machine tool industry in Bowang Town has maintained a good momentum of development in recent years. A large number of enterprises such as Central Asia, China-Germany, Gimhae, and Weston are forming economies of scale. The formation of machine tools and tool industry clusters has driven the development of the town's economy and has become the pillar of the town's fiscal revenue; it has led to labor employment, and currently employs 15,000 people in this industry.
Comments: Industrial clusters are a sign of the rapid development of China's industrial economy. Anhui Bowang's machine tool cutting industry cluster has a good foundation. How to seize the opportunity and take advantage of the momentum to realize the healthy development of the machine tool industry cluster in Bowang Town? The first is to further strengthen the core enterprise. Through its own efforts, it will increase support, further expand and strengthen several large-scale enterprises, and concentrate technology research and product innovation on core enterprises to play the role of radiation of core enterprises. The second is to further coordinate planning and do a good job in division of labor. At present, the enterprises in the cluster are basically fighting each other, and the products are repeated more and there are few interconnections. To further help planning, the products of each enterprise are focused on, expanding varieties and series, and targeting a wider range of users; it is also necessary to do a good job in process collaboration and develop specialized production. For example, machine tool enterprises consume a large amount of steel every year. At present, all enterprises purchase their own products. If they can purchase in a unified manner and concentrate on cutting materials, they can greatly reduce consumption. The third is to actively help solve the talent problem. Due to the gap between townships and urban life, it is difficult for companies here to attract talents, especially college graduates, to come here for employment and entrepreneurship.
Unique town sales model
The machine tool industry in Bowang Town, Dangtu County, Anhui Province has been developing for a long time. As early as the 1970s, some simple mechanical parts factories began to make simple machine tools to solve the problems of production equipment, and gradually developed into shearing machines and bending machines, which were very popular after being put on the market. In order to open the market and expand sales, the company hired local flexible and hands-on personnel to help sales. These people went to all parts of the country with product brochures and even samples to promote products and bridge the gap between enterprises and users. At that time, the enterprises in Bowang Town put the sales in the first place in the order of “sales for saleâ€. The company hired a large number of sales personnel, often 100 people produced and 1000 people sold outside.
Local companies implement flexible sales policies for sales personnel, and sales personnel do not take fixed wages, only sales commissions. This approach has greatly mobilized the enthusiasm of sales staff. Some people describe them as "running thousands of miles, entering thousands of households, saying a thousand words, eating thousands of hardships", but not too much. The flexible sales policy has made some sales people rich. With the capital, they also set up factories to produce machine tools and knives, which made the machine tool and tool industry prosper.
The hometown of machine tools has begun to take shape
Into Bowang Town, the first impression is that there are enterprises everywhere. At present, Bowang Town has formed three pillar industries of blade mould, machine tool and road construction machinery parts production, and there are more than 470 industrial enterprises, of which annual sales income 60 enterprises with an excess of 5 million yuan, 39 enterprises with self-operated export rights, and nearly 20 foreign exchange-making enterprises, the comprehensive strength of the town has been significantly enhanced.
In recent years, the machine tool enterprises in Bowang Town have implemented the scientific development concept and attached importance to the new industrialization road. Some companies have invested heavily in new plants, upgrading equipment and adopting advanced technologies. For example, companies such as Central Asia and China and Germany have built thousands to 10,000 square meters of factory buildings, purchased advanced production equipment and developed CNC machine tools. The cutting machines produced by the alliance company and the blades produced by Jinhai Company have reached the domestic leading level. A total of 8 products in the town were rated as exemption products, 3 products were rated as provincial famous brand products, more than 40 enterprises passed the ISO9000 quality system certification, and more than 20 enterprises obtained self-operated export management rights.
The government creates a development environment based on the situation
At the same time that machine tools and tool companies are generally developed, the Dangtu County Government and the Bowang Town Government have made great efforts to create a favorable environment for enterprise development. Investing a large amount of funds to build public facilities; formulating and implementing preferential policies such as investment promotion, VAT return, and landless farmers' protection to encourage enterprise development; to help enterprises solve the problem of insufficient funds, the town government also led the establishment of the Bowang Town Economic Development Credit Financing Association. The insurance center has won hundreds of millions of funds for enterprises; in order to support the technological progress of enterprises and better serve the enterprises, it also supports the establishment of the Machinery Research Institute, the wear-resistant alloy research institute, the heat-resistant tool steel research institute, and the heat treatment center; In order to standardize business operations and safeguard the legitimate rights and interests of enterprises, the town government also led the establishment of the Federation of Industry and Commerce.
Due to the external factors, the machine tool industry in Bowang Town has maintained a good momentum of development in recent years. A large number of enterprises such as Central Asia, China-Germany, Gimhae, and Weston are forming economies of scale. The formation of machine tools and tool industry clusters has driven the development of the town's economy and has become the pillar of the town's fiscal revenue; it has led to labor employment, and currently employs 15,000 people in this industry.
Comments: Industrial clusters are a sign of the rapid development of China's industrial economy. Anhui Bowang's machine tool cutting industry cluster has a good foundation. How to seize the opportunity and take advantage of the momentum to realize the healthy development of the machine tool industry cluster in Bowang Town? The first is to further strengthen the core enterprise. Through its own efforts, it will increase support, further expand and strengthen several large-scale enterprises, and concentrate technology research and product innovation on core enterprises to play the role of radiation of core enterprises. The second is to further coordinate planning and do a good job in division of labor. At present, the enterprises in the cluster are basically fighting each other, and the products are repeated more and there are few interconnections. To further help planning, the products of each enterprise are focused on, expanding varieties and series, and targeting a wider range of users; it is also necessary to do a good job in process collaboration and develop specialized production. For example, machine tool enterprises consume a large amount of steel every year. At present, all enterprises purchase their own products. If they can purchase in a unified manner and concentrate on cutting materials, they can greatly reduce consumption. The third is to actively help solve the talent problem. Due to the gap between townships and urban life, it is difficult for companies here to attract talents, especially college graduates, to come here for employment and entrepreneurship.
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