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Where is the next breakthrough in the PCB industry

In recent years, under the influence of multiple factors such as the epidemic, emission restrictions, industrial transfer, environmental protection and high pressure, the competition in PCB industry has intensified, and the reshuffle and mergers and acquisitions have been accelerating.

In the face of market changes and external environmental problems, many small and medium-sized PCB manufacturers have fallen into business crisis. Many PCB makers have gone bankrupt after many years of operation because of financial difficulties and failed to wait for new investment. Regardless of the size of the enterprise, as long as an enterprise collapses, it is the suppliers and employees who will suffer in the end, which has also sounded the alarm for the industry.

Affected by the epidemic, survival faces a test

Epidemic shock to PCB industry

At present, the epidemic has not been fully controlled and is still spreading, causing many small and medium-sized PCB manufacturers to face huge survival challenges and dilemmas. If the strength of the enterprise is strong enough, even in the case of fierce competition in the industry, it can withstand the test of survival from the market; on the contrary, in the natural law of survival of the fittest, it can only struggle and face bankruptcy.

Most PCB manufacturers were limited during the epidemic. Problems such as employee loss, material security difficulties, epidemic prevention difficulties, and technical equipment have led to delays in order delivery, serious customer loss in the later period, poor payment status, and labor and rental costs. Industry insiders revealed that there are a lot of orders. Due to the epidemic, many of them were stopped by customers halfway through, and the raw materials and labor were put in, but the payment was not received.

Material price hikes to compete for market share

material price hikes

It is said on the Internet that “collapse” and “price increase” are like a pair of twin brothers. As the news of the bankruptcy of PCB companies spread, the price increase of PCB raw materials followed one after another. The overall market situation of the PCB industry this year is good, but the cost is also rising, especially the price increase of raw materials has continued to this day. Many suppliers said they can’t bear it anymore.

Most PCB manufacturers are faced with problems such as rising material prices, sharp decline in revenue, shortage of funds, and no new orders, and their survival pressure is doubled. It can be seen that the price increase of materials, as one of the main reasons, has restrained the throat of the enterprise’s survival, which will undoubtedly cause a great impact.

However, as an industry giant PCB manufacturer or a well-capitalized manufacturer, the market position is relatively strong, and the customers are also relatively high-quality. There is no need to worry about facing the problem of material price increases, but it has led to an increase in orders. Because of this, the distance between head companies and small and medium-sized manufacturers will be further and further, and the reshuffle and differentiation of the industry will also be accelerated.

Layout the market and find the next export

It is understood that some small and medium PCB manufacturers are also actively seeking ways to save their lives in order to survive in the fierce market competition. Some companies have increased PCB products related to other industries, such as medical supplies, consumer electronic equipment, smart hardware, etc. Others have started value-added services and even exported to markets in other countries.

Some small and medium-sized PCB processing factories have been unable to keep up with the needs of technological iteration and equipment renewal, and can only obtain customers through unit price, resulting in a very difficult survival situation for small and medium-sized PCB board factories. In order to have the right to speak in the market, the center must gradually spread to other industries. Now, only by actively taking action and opening up other industries and markets can we stand out.

Transformation and upgrading to seize ecological opportunities

Transformation-and-upgrading

With the continuous development and change of the industry market, whether it is R&D technology, production equipment, and capacity support, higher requirements are also placed on PCB manufacturers. Traditional manufacturers are facing transformation. After all, in the industry with low technology and high capital barriers, If an enterprise wants to survive, it must have its own attributes and characteristics, which also accelerates the pace of reshuffle of PCB manufacturers.

PCB companies are currently facing important issues such as high labor costs, great competition, efficiency improvement, and cost reduction. Therefore, digital, automated and intelligent production is becoming the direction of PCB industry upgrading, and the requirements for products and precision will become higher and higher. PCB companies must adapt to changes and adjust their own strategies.

Create a powerful supply chain debut

In the face of the reshuffle of the PCB industry, the creation workshop has advanced awareness, constantly adjusts market strategies and innovative models, provides strong supply chain support, provides customers with research and development guarantees, and improves the management process system, leading technology, process equipment and resource pools, and is committed to To provide customers with high reliability product services and solutions to meet the needs of ordinary, high-end and special products.

Build an information platform, visualize the progress of production, and improve efficiency, all with customer needs as the core. Faced with the reshuffle of the industry market, Creation workshop, with its own resource advantages, stands on an invincible position, collaborates anytime and anywhere, builds an agile organization, and solves all production needs of customers with quality, cost and efficiency.

Conclusion

Therefore, in such a difficult situation, PCB manufacturers can only be in an invincible position by continuously improving their competitiveness, expanding the industry market, and advancing with the times.

IBE Electronics Co., Ltd. established in 2005, is an OEM / ODM PCBA service provider focusing on the research and development of laser ranging, new energy, medical devices, automotive electronics, industrial control, consumer electronics, etc other products.

IBE has high standard SMT workshop, more than ten DIP production line, finished product assembly line but also has formed the test assembly of laser ranging, new energy, medical devices, automotive electronics, and other terminal products production capacity.

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