Analysis of the current situation of Yueqing power fixture industry

Electric power fittings are the metal accessories that connect and combine various types of devices in the power system, transfer machinery, electrical loads and play a protective role. They play an important role in power transmission and transformation projects. Product quality is not only related to the safe operation of the power grid, but also related to personal and property safety.

The development of the electric power fitting industry in Yueqing area has been rapid. After more than 20 years of development, the sales volume has occupied the market of the country's 70, forming an integrated production and sales model. In the eyes of many laymen, the industry has many business opportunities to be found. However, in the eyes of indoers, there is a difficult story to read. The author did a detailed survey of enterprises of different scales in Yueqing area. The problems faced by different companies are not the same, some are common, and some are different problems with different perspectives and different degrees of development.

For small and medium-sized enterprises, the power equipment industry has made them look and feel sad at the same time. There are several problems in the power fitting industry: 1. The entry barriers for the hardware industry are relatively high, the investment in the fixed assets of the fixtures is high, and the investment in equipment and tools is more; 2. The one-stop production line equipment is equipped with a large amount of capital investment, if not relatively large Capital, it is more difficult to enter the industry. 3. The country’s monopoly is strong and the market as a whole has not been completely liberalized. The composition of state regulation is relatively high. For some large-scale projects, the tendering and bidding requirements are strict and the tests are heavy. 4. Affected by the fluctuation of raw materials. The raw materials for power fixtures include four types of copper, iron, aluminum and plastic. Among them, the volatility of copper prices is the most significant and the volatility of copper is great, which seriously affects the production and cost control of enterprises.

For enterprises that have already developed a certain scale, on the one hand, the low-price and disorderly price war has caused them to spend a lot of energy and strength. Every year, new companies enter the industry, and they want to get their own acre in the market. Three quarters, he does not hesitate to use low prices as a weapon in an attempt to expand his territory. On the other hand, product positioning is dead, everything must be done in strict accordance with national standards, but if the old standards are followed, all the products of the company are the same, and the production process of the fittings is as large as 17 to 20 processes, and Without outsourcing, one streamline is all done by the company itself. The overall investment returns are relatively low, and the market's advantage is not great.

In the investigation, the author found that companies in the power fitting industry generally feel that they are doing more difficult, and the problems of product speciality, low return on investment and output, and imperfect market are still factors that restrict the development of the industry. However, although they feel the difficulties of development, they are still full of confidence in the prospects of the industry. There is more room for growth in the market, the space for development is also greater, the future is bright, but the road is still twists and turns, how to break through the pain To become a butterfly is also a great test.

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