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PCB enterprises will face the crisis of "order transfer"

 

Just as the world economy is expected to recover and the good news that the international financial market is becoming more and more stable came, many PCB manufacturers in China were forced to usher in a new crisis of "order transfer". On the one hand, those small and medium-sized PCB manufacturing enterprises that rely on OEM cannot absorb the pressure of rising costs caused by the financial crisis; On the other hand, the serious shortage of workers makes many enterprises face the embarrassing situation that they can't start work alone. At the same time, with the increase of the wage cost of factory workers, the pressure of enterprise operation investment is also increasing. How to effectively solve these new crises has become a serious problem for PCB manufacturers.  

 

It is reported that in 2010, the PCB industry in coastal areas alone had a shortage of 200000 people. Due to the serious shortage of workers, many enterprises have been actively involved in the "robbing people" movement since the beginning of the year. However, it is still difficult to retain workers whose wage costs are getting higher and higher. In particular, since the second half of 2009, the domestic economy has improved significantly. Many workers can get the same salary in local factories. They have expressed their reluctance to leave their hometown to work.  

 

In addition to the shortage of personnel, PCB manufacturers developed by OEM (OEM) production have to absorb the impact of the financial crisis. In addition, they also have to face the impact of rising prices of production factors, shortage of resources and energy and high consumption, resulting in higher processing costs and weakening of price advantage in China. Some multinational companies have begun to transfer orders to low-cost Southeast Asian and South Asian countries, such as Vietnam, Cambodia, Bangladesh, Thailand, etc. In the absence of a marked contraction in market demand, the cancellation of orders in China will inevitably be supplemented elsewhere.  

 

According to the survey data, Japanese IT enterprises have transferred their PCB (printed circuit board) orders to Thailand, and the competitiveness of Thai PCB manufacturers is becoming stronger and stronger. The data shows that the PCB output value in Southeast Asia has reached US $3billion to US $3.5 billion, of which Thailand accounts for 30% to 40% of the total.

 

Some well-known manufacturing enterprises, such as Gree, Supor, Midea, Galanz and canon, have established their own production bases in Vietnam, where the cost is relatively low. According to yejide, the Board Secretary of Supor, Supor Vietnam base can radiate the Southeast Asian market, be responsible for the production of cookware in the Southeast Asian market, radiate from Vietnam to Southeast Asia, and directly produce and sell orders from Southeast Asia in Vietnam.  

 

Various signs show that "order transfer" is becoming a new major crisis that Chinese PCB enterprises have to face after the financial crisis. Southeast Asian countries are threatening China's "world factory" status with low-cost advantages. The key to the problem is that at present, most of China's PCB industry is still in the middle and lower reaches of the world industrial chain, and most of the exported products are "three low" products with low technical content, low unit price and low added value.  

 

Therefore, in the new situation, PCB manufacturers should actively transform, gradually reduce the scale of OEM production, reduce their dependence on OEM processing, and put their main energy into brand building, independently design and create their own brands, so as to change the adverse situation of "two ends are outside, controlled by people" and avoid the fatal blow of "order transfer".