What Impact Will the Devaluation of RMB Have on Parking System Manufacturers - Tigerwong Technology

Since the second half of this year, the foreign exchange rate of RMB has been declining. Many enterprises have some panic about the devaluation of RMB. I don't know whether it will affect the development of their own company's industry. Of course, the booming parking industry will be vigilant. Will the devaluation of RMB have an impact on the manufacturers of parking system? What will be the impact? The depreciation of RMB also means the relative appreciation of foreign currencies. The prices of China's main imported commodities will rise significantly.

Some small parking system manufacturers will have some pressure. The price of raw materials will rise and the cost will increase greatly, but the speed of making money is far from keeping up with the speed of cost increase. The products sold in the security market of developed countries are mainly IPC, and most of the product functions are biased towards the civil market. Self-sufficiency has little impact on the decline and rise of currency exchange rate. Objectively speaking, the core value of domestic security export enterprises mostly depends on low cost to maintain their competitiveness, and the creativity of the products themselves is still relatively lacking. The creativity and upgrading of security products themselves belong to the responsibility of security enterprises.

However, some security enterprises have benefited most of the selling prices of low-end export products and abandoned the upgrading and innovation of products themselves. This vicious circle leads to the lower the salary, the more competitive advantage it has. But times are different. When some industrial workers begin to go home to bask in the sun, and when the RMB begins to appreciate significantly, it may be difficult to extricate themselves from the mire if they want to improve their competitiveness through product innovation. Of course, the impact of RMB devaluation on parking lot system enterprises is still positive: first, it is conducive to expanding the export of parking lot system enterprises. The biggest advantage of RMB devaluation is the security enterprises focusing on foreign trade export in South China.

The devaluation of RMB will reduce the price of export commodities priced in local currency, so as to enhance the competitiveness of export products. Take Thailand as an example, 90% of its security products come from imports. Among these security products, 80% come from China. Thailand has a wide range of security application industries, such as Ping An City, Ping An Township, etc. In recent years, with the improvement of Thailand's overall security awareness, the government's investment has been strengthened again. China, Chinese mainland, Taiwan and Korea products become the hot spots of Thailand market. Compared with Taiwan and Korea, Chinese mainland security companies have the advantages of transportation and Chinese population.

Under a series of preferential situations brought by the RMB exchange rate, domestic security manufacturers should operate the security overseas market as a profit growth point of enterprises. II. The profits of parking lot system enterprises mainly engaged in foreign trade export will increase greatly, and the depreciation of RMB can bring more profits to foreign trade export enterprises. For example, for an order of US $1 million, before the devaluation of RMB, if it is settled in US dollars, it can receive 6.2 million yuan, but if it is settled at the current exchange rate, it can receive 6.89 million yuan, and the extra 690000 is the extra profit. Security enterprises will use the extra profits to invest in technology research and development, which will further enhance the competitiveness of enterprises and make them enter a benign development. However, it should be noted that although the depreciation of RMB has brought price advantages to exported security products, the trend of trade surplus is expanding, which leads to some trade attacks, such as anti-dumping litigation, and brings an adverse trade environment to enterprises.

At the same time, although the profits of China's security enterprises overseas have increased, the rising prices of domestic raw materials have increased the cost of going out. How to balance the profit space between the two has become a difficulty for Chinese security enterprises. No matter whether it is due to the devaluation of RMB or not, parking system enterprises must move upstream in the future. Naturally, a number of low-end enterprises are doomed to decline, lack of clear planning and core competitiveness. It is difficult for the security manufacturing industry under the superposition of multiple embarrassments to escape the elimination, but the birth of newborns is always accompanied by labor pains, Only through the embarrassment of fog superposition can we usher in our own brilliant tomorrow.

Tigerwong parking equipment supplier has focused on parking equipment for many years! If you have any questions about the parking system, welcome to consult and communicate.