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The cabinet industry is undergoing information transformation, and the introduction of capital still needs a solid foundation

by:Hench Hardware     2021-08-26
As my country's labor costs continue to rise, the cabinet industry, which is a typical labor-intensive industry, has also begun to encounter a crisis. The traditional model is no longer competitive, and the cabinet industry is at the forefront of the trend. Therefore, companies must start their transformation from the identity of a traditional manufacturer, learn to introduce capital, and use information technology to achieve transformation and upgrading.

  The informatization of the cabinet industry just started

  After more than two decades of development, the cabinet industry has gone through various stages of exploration before it has begun to learn to use software to solve problems and carry out an information-based production system. However, due to the constraints of capital, space, and talents, no company has formed a perfect informationized production system. Only some large companies are now using informationized systems to complete production. The manual type can only be suitable for the workshop type now, and it will gradually be eliminated.

  Informatization is conducive to manufacturing transformation

   In the process of transformation of China's information industry, the overall custom home furnishing has made a strong stroke. In the future, because of the upgrading of traditional enterprises, it will actually be the arrival of informatization. The home furnishing industry like custom cabinets is an industry that is in urgent need of transformation. The future direction is only two industrializations, the integration of industrialization and informatization, and the integration of manufacturing and service industries. These two integrations are the future of the traditional manufacturing industry, so this This kind of informatization upgrade is very important to the industry.

   The transformation of the cabinet industry requires capital

   Such a huge renovation project cannot be completed in a short time without capital promotion, so this capital is very urgent for the cabinet industry to be bigger and stronger. Moreover, capital integration can help cabinet companies enter informatization early, and the industry can help brands manage market value. Because cabinet companies need to seek their own added value, added value needs scale, and capital is needed to enter the scale in advance. This is a coherent action. The boosting effect of capital on traditional industries, cabinet companies want to realize the company's market value through docking capital.

   cabinet companies must lay a solid foundation

   However, capital does not value assets. It does not mean that cabinet companies can do what they have. What attracts capital is the company’s team, business model, profit model, corporate reproducibility, and the company’s presence in the industry. The location, positioning, development space of Zhongzhong, and the most important thing is profitability and cash flow. If cabinet companies want to introduce capital, they also need to lay a solid foundation from these aspects.
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