The major difficulties facing the current medium and small metal hose companies are:

First, production costs have risen too fast, raw materials have generally risen, labor costs have risen too fast, labor shortages and labor shortages have become prominent. The wages of workers in coastal areas such as the Yangtze River Delta and the Pearl River Delta have generally risen. The above two "costs rise too quickly" squeezed the profitability of metal hose companies.

Second, the burden on metal hose companies is still heavier. The charges for enterprises are still relatively high and high, and illegal and non-compliance fees still exist. For example, in some places, the use of arbitrary charges to ease financial difficulties, some departments use their power charges to seek the interests of the department, and some grass-roots law enforcement officers violate the rules and charges for personal interests.

Third, since last year, in order to consolidate the results of the financial crisis, China has adopted a prudent monetary policy and has raised bank deposit reserve rates 12 times in a row. This year, it has raised bank interest rates twice. The reduction in the scale of credit has led to difficulties in the financing of small and medium-sized metal hose companies, especially small and micro-sized metal hose companies. A large number of small and medium-sized metal hose companies have solved the urgent needs through private lending. The interest rate on borrowings has been as high as 50%-100%. The cost of financing remains high. At present, China's current financial system is difficult to solve the "bottleneck" problem of small metal hose companies with fewer financing channels, small scale, and high costs.

Fourth, most small and medium-sized metal hose companies are at the low end of the traditional industrial value chain, have weak technological innovation capabilities, have extensive production and management operations, and have low levels of equipment, shortage of professionals, lack of independent intellectual property rights and brands, and rely mainly on “low-cost, low-cost, "Low-profit" participation in competition, it is difficult to digest the factors of rising operating costs in time, adapt to changing the development mode and adjust the actual requirements of optimizing the economic structure.