Industry trends

(1) The close cooperation between precision structural parts manufacturers and customers has been continuously strengthened

In order to continuously improve product reputation and expand the scope of target users, downstream electronics manufacturers have increasing requirements for product quality control, and upstream suppliers need to pass a series of strict review procedures before supplying them. Precision structural parts manufacturers usually need to go through a long period of technology and product running-in (generally more than 1 year) to pass the supply chain system certification of downstream customers and obtain bulk orders. In order to ensure product quality and delivery cycle, save pre-certification costs and R&D investment, and improve the overall profit margin of products, downstream customers generally select only a few suppliers with stable supply capacity for a single model of precision structural parts, and it is easier to form a long-term close cooperative relationship after the establishment of the relationship between the two parties.

At the same time, precision structural parts products have customized characteristics, precision structural parts manufacturers participate in the customer's product plan formulation process, and form a relatively stable supporting relationship with customers. In the future, with the increasing richness and diversification of user needs, the degree of customization will be further improved, and the cooperation between precision structural parts manufacturers and downstream manufacturers will continue to strengthen.

(2) The degree of production automation and intelligence continues to improve

The manufacturing of precision structural parts has high requirements for the precision and quality of products, and its process generally requires advanced production equipment and high-quality production environment to provide basic support, and at the same time has high requirements for the skills of personnel. Through the application of automation equipment, enterprises can not only reduce the dependence on personnel skills, but also improve product stability, reduce personnel workload and improve production efficiency.

In addition, China attaches great importance to the leading role of information technology in economic and social development, actively promotes the application of information technology represented by big data, artificial intelligence, etc. to all walks of life, and applies information technology to the production and manufacturing process of precision structural parts, which is the general trend of deep integration of informatization and industrialization, and the degree of intelligent manufacturing is deepening.

(3) Industry concentration is expected to gradually increase

With the increasing requirements of

electronic product end users for brand, quality and service, industry leaders have accelerated their development, and the market tends to be concentrated, putting forward higher requirements for upstream suppliers. Taking smartphones, an important terminal application market in the electronics industry, as an example, according to data released by IDC, the top four brands in global smartphone shipments accounted for 58.87%, 62.15% and 62.65% of global smartphone shipments from 2018 to 2020, respectively, and the industry concentration gradually increased. These industry leaders have put forward high requirements for suppliers' technical research and development level, product quality and delivery cycle, requiring a considerable scale of enterprises to provide supporting services for them, and the relevant requirements are transmitted to upstream suppliers, among which precision structural parts manufacturers also need to comprehensively enhance their comprehensive strength to consolidate and enhance their market share. At the same time, with the overall upgrading of the precision structural parts manufacturing industry, its degree of specialization continues to increase, some small-scale, slow technological progress enterprises will be gradually eliminated, and excellent enterprises with a certain scale and strength will further expand their market share.