Industry development trend

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

In order to continuously improve product reputation and expand the range of target users, downstream electronics manufacturers are increasingly demanding product quality control, and upstream suppliers are required to go through a series of strict review procedures before they can supply them. Manufacturers of precision structural parts usually need to go through a long period of time (usually more than 1 year) of technology and product running-in in order to pass the downstream customer's supply chain system certification and obtain bulk orders. In order to ensure product quality and delivery cycle, save pre-certification costs and research and development investment, and improve the overall profit margin of the product, downstream customers generally choose only a few suppliers with stable supply capacity for a single model of precision structural parts, and it is easy to form a long-term close cooperative relationship after the establishment of the relationship between the two sides.

At the same time, precision structural parts products have the characteristics of customization, precision structural parts manufacturers participate in the customer's product plan development process, and customers form a more stable supporting relationship. In the future, with the increasing enrichment 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 continue to improve.

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

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 and artificial intelligence in all walks of life, and applies information technology to the production and manufacturing process of precision structural parts, which is the general trend of the deep integration of informatization and industrialization, and the degree of intelligent manufacturing is constantly deepening.

(3) Industry concentration is expected to gradually increase

With the increasing requirements of end users of electronic products for brand, quality and service, industry leaders accelerate their development, the market tends to be concentrated, and higher requirements are put forward 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 of global smartphone shipments accounted for 58.87 percent, 62.15 percent and 62.65 percent of global smartphone shipments from 2018 to 2020, respectively, and the industry concentration gradually increased. These industry leaders have put forward higher requirements for suppliers' technology research and development level, product quality and delivery cycle, and require a considerable scale of enterprises to provide supporting services for them, and the relevant requirements are transmitted to upstream suppliers layer by layer. Among them, manufacturers of precision structural parts 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 structure manufacturing industry, its degree of specialization continues to improve, some small-scale, slow technological progress of enterprises will be gradually eliminated, and with a certain scale and strength of excellent enterprises will further expand market share.