An Overview of China's Industrial Clusters for Hardware and Tools (Part I)

China’s hardware and tool industry, experiencing over 30 years of rapid development, has established itself as a major global producer and exporter in this sector, making significant contributions to economic growth and consumer demand. As technology and production processes update, its foreign trade pattern has successfully shifted from lower-end products to higher-end ones. According to customs statistics, in 2022, China’s hardware products industry recorded a total import and export volume of 195.45 billion, increased by 1.3%, with exports amounting to 169.76 billion, marking a remarkable year-on-year growth of 3.49%.

Hardware and tools can be categorized into different types, including construction hardware, tool hardware, daily hardware, lock and abrasive hardware, kitchen and bathroom hardware, and household hardware. China’s hardware and tools industry clusters are characterized by complete industrial chains, distinct industry features, and concentrated brand presence.. Geographically, they are mainly concentrated in provinces and municipalities such as Zhejiang, Guangdong, Jiangsu, Shandong, Hebei, Fujian, Hunan, Henan, Shanghai, and Chongqing. And these industrial clusters radiate to key markets across South China, East China, North China, and Central China. In terms of foreign trade, China holds a leading market share in international markets.

Zhejiang
Leading Exporter of Hardware and Tools in China

In the first three quarters of 2023, Zhejiang, Guangdong, and Jiangsu ranked among the top three in light of total export value. These provinces are the main production centers for hardware and tools and demonstrate a clear trend of industrial clustering. Zhejiang, in particular, takes the lead as the top exporting province, accounting for 31% of the total, followed by Guangdong at 15% and Jiangsu at 16%. Known for its extensive industrial clusters in various categories of hardware tools across the province, Zhejiang has established a solid foundation for its hardware and tools industry.

Yiqiao Town in Hangzhou produces over 50 categories and thousands of varieties of tools, including socket tools, power tools, tool sets, woodworking tools, and measuring tools. These products are exported to more than 80 countries and regions, including Europe, the United States, Japan, Southeast Asia, and the Middle East. Furthermore, Jiande City in Hangzhou is the largest screwdriver production base in Asia, with its screwdriver products holding a 20% market share worldwide.
 
Jinhua's hardware industry, especially in power tools, is a traditional and pillar industry with a total output value exceeding RMB 50 billion. In Yongkang of Jinhua, known as the "Hardware Capital of China" as well as the "Hardware Capital of the World", the hardware industry serves as a mainstay industry, accounting for 90% of the industrial output value of the city. Yongkang is home to the Science and Technology Hardware City of China, which is the largest hardware market in China and the third largest in the world. In 2022, the market achieved a turnover of RMB 45.532 billion.
 
There is a saying that goes: "Out of every 10 doors in China, 7 come from Yongkang”. In terms of foreign trade, Yongkang has also made remarkable achievements. 5 out of every 10 sets of power tools are manufactured in Yongkang, and among every 10 thermal flasks worldwide, 6 originate from Yongkang. Representative enterprises from Yongkang include Wonly, Boda, Safun, Xing Yue, Buyang, Chinsun, and Haers, etc.
 
Ningbo, taking the second spot in Zhejiang province in terms of GDP, leads the country in industries such as bearings, electric drills, electric saws, and screws. Bearings, household appliances, and automotive parts are vital pillars of the industrial economy in Cixi, Ningbo. With a total of 683 bearing companies, the bearing industry accounts for 40% of the town's industrial output value.
 
In Ningbo's Yinzhou District, there are more than 1,000 diverse enterprises engaged in the manufacturing and trading of hardware and tools. Over 90% of them are focused on exports, with export revenues exceeding 2 billion US dollars in 2020. Known as the "Manufacturing Base of China's Power Tools," Ningbo's Yuyao is home to leading companies such as Great Wall Precision, Land, Giant, Sacon, Anchor, Wugu, and Baoxing.

Wenzhou, while being famous for leather products, is also renowned for its hardware locks, faucets, bathroom accessories, and other products. It is known as the "Lock Capital of China" and gathers over 600 lock companies, with its lock products occupying over 65% of the national market share. Additionally, Wenzhou has more than 2,500 hardware enterprises, with an annual sales revenue of over RMB 30 billion. And Wenzhou has witnessed the rise of well-established brands like TenYale, Zoli, Tonyon, and Wuzhou.

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