By M.A. Saki

Production will fail to keep pace without tapping new technologies

June 13, 2021 - 0:26

The seven presidential contenders in Iran 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 great effort is needed to change this mindset. 

Many citizens, based on their incomes, are willing to pay more money to buy high quality goods. Once sanctions against Iran are lifted, tendency toward buying foreign-produced goods, such as home appliances which have higher qualities, will increase. In that situation local producers will lose the race to the benefit foreign manufacturers.

It is heartening that the candidates say producers should be supported to lower their cost and be granted tax relaxation. However, producers will surely lose the battle if they don’t update their technology. Producing low quality goods will lead to the waste of raw materials as they get out of service sooner than it is expected.

Research and development (R&D) must find its place among producers in Iran. If local producers have lost the market to the benefit of foreigners, it is mostly because goods manufactured by certain foreign companies are of higher quality and sometime cheaper.

Local producers should allocate a considerable portion of their income to R&D. If Korean goods succeeded to sideline producers of home appliance in Iran it was just because they are constantly promoting the beauty and quality of their products.

Consumers in Iran have fallen prey to certain companies, especially those involved in heavy industries. For example, two large car producers in Iran -- SAIPA and Iran Khodro – which together produce more than one million vehicles in the country are not answerable to consumers for the low quality of their cars. Not only they have monopolized the domestic market, they also constantly increase their products. However, R&D and quality are given little attention.  If R&D had been given priority all through these long years, their products would have now found customers around the world.

The presidential candidates claim that Iran can export manufactured goods to neighbors and other countries. However, as long as local producers don’t continuously promote the quality of their goods by tapping new technologies, they will fail to find a proper place in the highly competitive international markets.

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