At present, in the domestic hardware processing industry, major hardware giants are developing smoothly and are unstoppable. Moreover, the development prospects are also relatively optimistic, and the vast number of small and medium-sized hardware processing enterprises, namely those small hardware processing factories and hardware stamping parts factories, face difficulties in survival, small order volumes, low competitiveness, and limited survival space. Although we know that today's hardware giants have developed from small hardware processing factories, hardware stamping parts factories, and other small hardware enterprises, they have also experienced bloody challenges along the way, which has led to today's achievements. The "threshold" for small and medium-sized enterprises has come, and walking past is the door, but talking about successful experiences with confidence; If you can't pass, it's a hurdle, and from then on, it disappears without a trace. The wave of bankruptcy is approaching, and small and medium-sized enterprises that have crossed over are successful examples. If they cannot cross over, they can only be classified as bankrupt enterprises in the numbers. In the year of "shortage" in 2011, facing various shortages such as "money shortage", "electricity shortage", and "labor shortage", how small and medium-sized enterprises can not panic is a major issue worth considering. The central bank has raised interest rates, making it difficult for small and medium-sized enterprises to obtain financing, and it is difficult for a simple labor-intensive industrial chain to go long-term. And transformation and upgrading are not just about shouting slogans to succeed. How can small and medium-sized hardware enterprises break through the Matthew Effect curse, shake off the hat of the weaker and weaker, and "survive" in the difficult hardware environment? The author believes that small and medium-sized enterprises should find suitable development methods for themselves. For example, enterprises with the ability to transform and upgrade should strive for a magnificent transformation, ensuring that they keep up with the pace in complex environments and become the "fittest" in survival and the "best" in survival of the fittest; Enterprises without technical support and transformation capabilities can develop in groups, huddle together in the cold hardware environment, and combine the advantages of several enterprises to take a new step together; Alternatively, one can choose the 1N model, where several small and medium-sized enterprises leverage a large enterprise to drive development. In summary, our small and medium-sized hardware processing factories and hardware stamping parts factories and other hardware processing enterprises cannot sit idly by. We must seek new measures for the development of our own enterprises, explore and innovate, and break through the curse of the hardware industry.