LED display raw materials are on the rise-are you panicking _Small-pitch LED display|led display man

LED display raw materials are on the rise-are you panicking? _Small-pitch LED display|led display manufacturer|led display enterprise

by:XY Screens     2021-10-05
With the development and maturity of small-pitch LED displays, some insiders say that the current LED display market is in a state of 'demand exceeds supply'. As the small distance between indoor and outdoor is closer, the demand for lamp beads in the market is increasing, and this has also prompted the upper and middle reaches of the production enterprises to increase the scale of production. It is understood that with the decline in the prices of some finished products, many downstream LED display manufacturers have increased their production capacity to ease the pressure of price competition. However, the increase in demand from downstream manufacturers has also prompted the expansion of upstream and midstream raw material manufacturers. The scale of production meets the needs of the downstream market. However, in recent years, the economic downturn has increased the pressure of enterprises to survive, and the rise of some costs has led to the rise of the cost of raw materials in the upstream of the LED display. As we all know, in the production process of LED packaging devices, raw materials account for as much as 75-80% of the production cost. Therefore, when the cost of raw materials rises, it will inevitably bring certain production pressure to packaging manufacturers. It is understood that the current LED package unit quantity uses gold wire between 15-18 yuan, while the relatively cheaper copper wire is 8-1.5 yuan. At the same time, someone in the industry revealed that for high-end packaging devices, packaging manufacturers are more willing to purchase international brands of auxiliary materials. Undoubtedly, the prices of international brand auxiliary materials are relatively high. In such a case, packaging It is not difficult for manufacturers to make some adjustments to prices. In addition, the cost of manpower is also a problem that LED display companies have to face. According to information released by relevant agencies, from the perspective of industry labor costs, labor costs in 15 industries including manufacturing, construction, wholesale and retail have increased over the previous year. In particular, the average labor cost of manufacturing has approached 120,000. The annual average level reached 119,788 yuan, an increase of 11.5% over last year. To sum up, as the cost of labor, rent, raw materials, etc. of the company continues to increase, it brings challenges to the operation of LED display companies, and it also forces the company’s demand for survival or profitability. The means of price increase is only one of them. . Low price competition has bottomed out. High quality has led to price increases. In recent years, as more and more people have made LED display products, the homogeneity has been serious, resulting in a rapid price drop. Even if the company’s production capacity and sales scale have increased compared with the same period last year, the intensified market competition has led to a sharp drop in product prices and a narrowing of gross profit. According to industry insiders, in terms of prices, the current LED display chips, packaging and other raw materials Has bottomed out. Or in other words, competition around low prices is not enough to support the rapid development of LED display companies.
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