As a privately-owned listed enterprise, Boshen Tools Co., Ltd., the "leader" of the diamond tool industry born and raised in our city, has recently experienced a decline in market demand growth due to the sustained economic downturn at home and abroad, as well as the impact of domestic economic structural transformation and real estate regulation policies; In response to this, Boshen constantly seeks innovation, change, and growth. While developing domestic and international markets, it continues to innovate in technology, expand and extend its product line, increase product added value, promote rapid growth in sales revenue, and continuously improve profitability. With high-end and specialized products, Boshen strives to break through and ensure the sustainable and healthy development of the company. 
Research investment provides growth momentum 
Continuous innovation is the most distinctive feature of Boshen Tools. The reporter learned that there are more than 150 R&D personnel in Boshen's 2200 person workforce. Not only does the company have its own R&D center, but the three business units under it also have their own R&D departments. In addition, the company's technology center is also a provincial-level enterprise technology center in Hebei Province. It undertakes the construction of the Hebei Diamond Tool Engineering Technology Research Center, jointly establishes the Boshen Tool Research Powder Joint Laboratory with the Beijing Nonferrous Metals Research Institute, and jointly builds the Boshen Tool Electric Tool Product R&D Center with the Shanghai Electric Tool Research Institute in Shanghai. 
Entering the R&D department of the company's diamond tool division, the reporter saw that the R&D personnel were either working at their desks or searching for information, creating a quiet yet busy atmosphere. Meng Fanai, the R&D director, told reporters that relying on continuous technological innovation and product development, the company has not only achieved large-scale industrial production of mature diamond tools in China, replacing foreign products, but also participated in the formulation of multiple industry standards, local standards in Hebei Province, and national standards; In the first half of this year, I just participated in the formulation of an industry standard for diamond thin-walled engineering drill bits. 
We always adhere to market-oriented approach and have developed more than 2000 types of tool products suitable for different working conditions, purposes, and process performance. More than 600 new products are put into the market every year, and the sales revenue of new products accounts for more than 35% of the annual sales revenue. According to Jing Chengming, the deputy general manager of the company, currently, the company has more than 150 national patents, 1 well-known Chinese trademark, 8 famous trademarks in Hebei Province, and more than 20 product projects have been listed as national, provincial, and municipal key projects. 
After achieving success in the general market, Boshen Tools has targeted the high-end professional market occupied by foreign enterprises, accelerated product layout, accelerated the promotion of product high-end and specialization, and decisively entered professional markets such as tile processing and stone processing. The reporter learned that the company focuses on developing ceramic tile processing tool projects. In 2011, the company signed supply contracts for more than 20 ceramic tile production lines, achieving revenue of over 20 million yuan. In the first half of this year, the company has already achieved sales revenue of over 19 million yuan, opening up new business areas and becoming a new source of revenue and profit growth. 
It is reported that at Boshen, the annual research investment accounts for more than 4% of the company's total investment. At present, they are busy developing high-end diamond tool products such as stone tools, professional grinding tools, high-speed rail specific drill bits, ultra-thin turbine blade products, new high-performance drill bits with irregular teeth, new irregular tooth grinding discs, and rope saws. After these new products are launched, they will also become an important guarantee for promoting breakthrough sales growth. 
Technological innovation and management innovation promote efficiency improvement 
Advanced equipment is a guarantee of high efficiency. Faced with fierce market competition, Boshen has increased its research and development efforts, targeted cutting-edge industry standards, introduced advanced foreign equipment, adopted advanced technology, and promoted the comprehensive upgrade of enterprise software and hardware. 
In the production workshop of the company, the reporter saw that in the production process of the three major tool products, advanced production inspection equipment such as vacuum hot press machines, CNC controlled automatic laser welding machines, professional gear hobbing equipment, and fully automatic CNC welding machines produced in Germany, the United States, South Korea, etc. can be seen everywhere. Moreover, in the past two years, Boshen has invested over 60 million yuan in equipment upgrades, expanded production capacity by more than 50%, and increased labor productivity by nearly 30%. 
Previously, this press required six people to operate, and the uniformity of feeding was not consistent, resulting in low production efficiency. After the technological transformation, a fully automatic saw blade press was used instead of a manual press, making it easy for me to see two machines on my own. "In the cold pressing workshop of the Diamond Tools Division, staff member Zhang Qian happily said while pouring materials into the hopper. The reporter saw that after feeding, within a few seconds, the scraper evenly pressed the powder onto the substrate, and a saw blade quickly "came out of the furnace". 
The relevant person in charge of the company told reporters that since the second half of last year, the Single Diamond Tool Division has carried out dozens of technological upgrades such as drill bit cleaning line and electrostatic spray painting line. While the automation level has been greatly improved, it has also saved a lot of labor costs and greatly improved work efficiency. In one year, it has saved nearly ten million yuan in funds. 
While continuing technological innovation and introducing advanced equipment, Bo Shen's management philosophy is also constantly innovating. Boshen is the first in the industry to pass the ISO9001 comprehensive quality management system international certification, and its management mode and philosophy are gradually in line with international standards. As early as 2003, the company introduced the ORACLE ERP management system, which has significantly improved its production and financial management levels. It has also become a demonstration unit for enterprise informatization in Hebei Province. More than two months ago, they specifically invited a well-known domestic consulting management company to systematically review Boshen's organizational system, control mode, institutional processes, etc., in order to achieve further improvement in management level and work efficiency. 
Standardized management is the guarantee of the vitality of enterprises. "Jing Chengming believes that in a perfectly competitive market, simple and extensive management can no longer meet the requirements of enterprise development. Only a modern management system that is scientific, reasonable, standardized, and risk controllable is the lasting guarantee for the efficient operation of enterprises. 
New products and new regions drive rapid sales growth 
The reporter learned that Boshen's marketing network covers more than 200 cities in 31 provinces, municipalities, and autonomous regions in China, and has established long-term and stable cooperative relationships with over 300 distributors; At the same time, it has four overseas subsidiaries: Boshen USA, Boshen Canada, Boshen Brazil, and Boshen Thailand. Although constrained by the current economic environment, it has not stopped its expansion efforts. In China, the company has invested in the construction of new research buildings and other projects. The reporter saw at the construction site that the external decoration of the building is being carried out intensively and will be completed soon; In addition, the scale of its overseas subsidiaries is constantly expanding. 
The main business of the company is the research and development, production, and sales of three major tool products: diamond tools, power tools, and alloy tools. Currently, diamond tools contribute more than 70% of the revenue. However, we are also adjusting our business structure according to the company's strategic plan. In the future, the proportion of revenue from power tools will gradually increase, with a revenue ratio of 4:4:2 for the three major tool products. Diamond tools will steadily grow while power tools will accelerate their development. "Jing Chengming told reporters that in order to achieve steady growth in diamond tools, they have actively expanded their product coverage and revenue scale. Since last year, they have entered the field of diamond tools for ceramic production and processing, and actively planned to enter the entire industry chain of stone processing tools. The development of electric tools has a broad prospect. The market capacity of electric tools is very large, which is incomparable to diamond tools. Especially in the domestic market, high-end products are currently dominated by foreign brands. If enterprises make breakthroughs in technology and use their brand and channel advantages to compete, they have great potential in the future. Currently, Boshen is rapidly improving the technical level of electric tools, enriching product types, and planning to seize the high-end market of domestic electric tools through multiple paths such as cooperative development, commissioned development, and independent research and development. 
After more than two years of recovery abroad, Boshen's market in the United States has become relatively stable. However, due to the impact of the European debt crisis, exchange rates, and other factors, the European market has been greatly affected. In response, the company actively expands its international market sales areas in the Middle East, India, Russia, Africa, and Southeast Asia, and insists on promoting its own brand. Despite the severe market situation, sales revenue still increased compared to the same period last year. 
Looking ahead to the future, Boshen people are full of confidence. Faced with the severe market situation, the company actively plans, responds proactively, and takes decisive actions. At present, the wholly-owned subsidiary established in Brazil has been put into normal operation and will seize the market opportunities brought by the 2014 World Cup in Brazil and the 2016 Rio de Janeiro Olympics to make a big impact; The Thai subsidiary project, which started investment and construction last year, is progressing smoothly and has already been put into production. It will become an important overseas diamond tool production base for the company. 
Comment: Take the initiative to break through the predicament 
In this economic crisis, outward oriented enterprises have been particularly impacted. Domestic sales are weak, exports are frustrated, and there is a double blow, just like Boshen. However, waiting for the overall environment to improve is never what an upward oriented enterprise should do. Every economic transformation is also a good opportunity to force enterprises to innovate. Only by taking the initiative and adjusting the structure to promote development is the best strategy. 
After conducting sufficient market research, adjust one's business strategy in a timely manner, and find ways to develop new products, expand new fields, increase production and reduce consumption based on the characteristics and development needs of the enterprise. It is like delving deep, implementing technological transformation and strong management, increasing product categories, adjusting structure, and actively exploring more suitable markets. In this way, even if one is currently limited by the environment and unable to take action, their future will definitely be better.