PCB News - PCB proofing industry reshuffle is nonsense

On the surface, the low price of PCB proofing does not seem to do so much damage to the company, and it can even help the company to attract more customers for one-stop service. However, this situation is only aimed at large companies. For small manufacturers, lower prices will further squeeze out the profit margins of the manufacturers. At the same time, it may also lead to the phenomenon of bad money driving out good money in the market, and even in the market. Remarks say this may lead to a reshuffle of the industry.

For this remark, Yuan Wengui refuted: "The industry shuffling is pure nonsense. It is neither a banker nor at the same table. Who has the ability and right to shuffle the cards, or customize the rules of the game. It is nothing more than that. It means that you can't make a big wave in the low-end market. The success and failure of a company is not from its competitors, but from failing to know oneself."

An industry insider also said: “The industry shuffle is untenable. The PCB proofing market belongs to the traditional manufacturing industry, and the barriers to entry are low. Even if the price war is used to squeeze out small manufacturers, there will still be many new players. One after another pouring in."

Yuan Wengui added: “Vicious price competition ultimately leads to all losses. We should deal with these things rationally, instead of participating in price reductions and reducing costs. We should respond to the call of the country’s policies, strive to innovate, develop thinking, and improve our own Value capability. Occupy market share with innovative strength and convince customers with technology."

An industry insider said: “Normal commercial competition will promote the healthy development of the market, but today’s PCB price wars have broken the market. If you want to restore the original ecology, you need to pay more. PCB Allegro manufacturers should optimize Self-management, reducing production costs, internally digesting cost pressures, reducing surcharges or even eliminating surcharges, so that users can get real benefits. Don't let the "gimmick" price cuts ruin the user's trust in PCB small-volume manufacturers."

Wu Qingxian believes: "If the production company has no profit margins, it will be forced to cut corners and break through the bottom line. It is not uncommon for safety accidents caused by poor product quality. In the engineering field, some people call this kind of low-price competition. The phenomenon of “starved to death of peers, exhausted to death of oneself, and killed the owner”. Fortunately, the market has gradually been standardized, and eventually enterprises will return to focusing on quality. From a personal point of view, I am still very optimistic about the future of PCB. Of course, if it is a manufacturer that simply produces PCBs, it will be difficult to survive in the future. Therefore, many powerful manufacturers have begun to design related software by themselves, providing some schools and engineers for PCB design and related electronic product development.

The current global PCB output value reached 60 billion U.S. dollars in 2018, is expected to reach 66 billion U.S. dollars in 2019, and will exceed 70 billion U.S. dollars in 2020. Faced with such a huge market, there are more than 1,300 Chinese companies engaged in the PCB field in 2017, which means that competition will be extremely fierce. Obviously, low prices can greatly help companies gain market visibility. For large manufacturers, the most important thing is to grab the entrance. Faced with numerous orders, they can be effectively pulled into their own industry services and compensated by follow-up services. The loss of PCB proofing requires a large investment and a greater return. Due to their own size, these large manufacturers can also handle it. But for small manufacturers, many orders attracted by low prices will be difficult to guarantee timely and high-quality shipments. At the same time, various charges and quality defects will be inevitable. Ultimately, only customers and PCB small-volume manufacturers will be harmed. Credibility.

Returning to the PCB proofing market, price is certainly the first indicator for customers to choose products, but in the future PCB industry standards are gradually regulated, it will be difficult to attract repeat customers by relying on low prices and low quality, and it will be difficult for companies to continue operating. In the end, winning customers depends on quality. If large PCB factories want to seize the entrance, they will inevitably attract more customers at low prices. But if small PCB factories want to seize market share, they must convince customers with quality and technology.