Production will fail to keep pace without exploiting new technologies
Iran’s seven presidential candidates have been insisting on production since the campaigns began on May 25. However, production in industrial fields without using new technologies will end in failure.
Generally speaking, producers are obsessed with instant profit and a big effort is needed to change this mindset.
Many citizens, depending on their income, are willing to pay more to buy high quality products. Once the sanctions against Iran are lifted, the tendency to buy goods produced abroad, such as better quality household appliances, will increase. In this situation, local producers will lose the race in favor of foreign manufacturers.
It is encouraging that the candidates say that producers should be supported to reduce their costs and receive tax relief. However, producers will surely lose the battle if they don’t update their technology. The production of poor quality products will lead to the waste of raw materials as they will be taken out of service sooner than expected.
Research and development (R&D) must find its place among producers in Iran. If local producers have lost the market to foreigners, it is mainly because the products produced by certain foreign companies are of better quality and sometimes less expensive.
Local producers are expected to devote a considerable share of their income to R&D. If Korean products have been successful in pushing aside home appliance producers in Iran, it is simply because they constantly promote the beauty and quality of their products.
Iranian consumers have fallen prey to some companies, especially those involved in heavy industry. For example, two major car manufacturers in Iran – SAIPA and Iran Khodro – which together produce over a million vehicles in the country are not responsible to consumers for the poor quality of their cars. Not only have they monopolized the domestic market, but they are also constantly increasing their products. However, R&D and quality receive little attention. If R&D had been a priority throughout these long years, their products would now have found customers all over the world.
Presidential candidates claim that Iran can export manufactured goods to its neighbors and other countries. However, until local producers continuously promote the quality of their products by exploiting new technologies, they will fail to find a suitable place in highly competitive international markets.