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How do the PCB manufacturers make money in the internet Era

Especially in the last two or three years, as rising wages, tightening environmental protection policies, the economic downturn (relative surplus production capacity), led to the intense competition in the current China PCB industry.

Still later, due to the overcapacity of traditional single, double, multi-start , only these PCB facturies who take the strategies of scale (capital + purchase cost advantage) production, product differentiation (high-end or low-volume), Management specialization (low management cost + average efficiency) earn money

This period should be defined in the 2008-2012, the subprime crisis of 2008 should be a turning point, There was a sharp drop in overseas orders at that time, and a lot of export-oriented PCB factories had turned to develop the domestic market. At the time, the State has released a series of policies to expand the China domestic demand, such as: “Home Appliances / car to the countryside”, “4 Trillion Plan” , also a series of measures for reducing the burden of interest rate cuts, but the China PCB industry did not take this opportunity to fundamentally resolove the the industry’s own structural overcapacity problem. While this brief but prosperity for the industry gave birth to the misjudgment of the market demand, especially the misjudgment for the low-end market, missed the best time for business transformation and upgrading!

Meanwhile, the state enhanced the environmental protection threshold for the electroplating industry; so in the end, after a short-lived boom, 80% of the PCB industry enterprises entered into the unprecedented anxiety, because more and more PCB manufacturers had to choose to end the factories, a lot of related suppliers were under huge pressure. the entire supply chain upstream business are even more jittery, fearing to lose everything.

Today, giant pattern is beginning to show, the industry began to shuffle! The first ones to take the strategy of introducing automated PCB manufacturing equipments to further reduce labor costs, it is essential to seek a good profit model for the small and medium PCB manufacturers.

At present the PCB orders profit is very tiny, every PCB business decision makers feel uncomfortable, and to transit, but the saying goes: waiting for if no transition, but blind transition is seeking the death! Each company is thinking about how to reduce costs, think about how to pass on the cost and to avoid risks. There is no secret at all for operation mode in the internet Era, all of the production costs already available to the public, future, once completed the industrial layout maker , small PCB manufacturer will be pushed into a more harsh living conditon.

As writing to here, we get a few basic conclusions:

1. PCB Product is still just need, upgrading and investment of automated, precisionial equipment are still very necessary before the maturity of new PCB manufacturing process (such as 3D printing)

2. Not no enough demand lead to insufficient PCB orders, simply because of overcapacity, especially blind follow-up investments of expanding the low-end market resulting in overcapacity! The high-end market is still with high profit

3. The vision + pattern + management (execution and cost) of the PCB factory owners (or actual decision-makers) will result in the future profitability of the enterprise model.

Next, we will discuss the possilbe moneymakings of the current China PCB industry

Firstly, the traditional giants, their points of profitability seems to be relatively simple. tht First, the visibility in the field formed a good effect to get orders, are often able to obtain large customers and high price; the second is the cost of large-scale dilution caused; the third is the power to cost down the purchasement with the huge purchasing demands, which can help get 20% or more promotion of the bulk purchase compared to SMEs ;
Fourth. The so-called stronger will be always strong, this model is very fascinating for the most of small PCB manfacturers , but with no replicability and reference!

Secondly, the traditional PCB business of Internet + (Electronic Component) strategy. Its operating concept is the use of the Internet to promote a low price to attract a large number of customers, then gradually make the cost down with a sufficient amount of purchases and cash flow capacity, after forming the customers loyalty , then selling them electronic components, try to one end or even two ends profitable.

iFastPCB is a leading China PCB supplier using this Internet Plus strategy, we offer instant online quotation, online order, and we’ve developed powerful ERP system to enhace our PCB manufacturing efficiency. that’s our price is very competitve. iFastPCB is direct sales from China PCB factory and focusing on providing fast pcb service to speed up your business and ideas.

About iFast PCB

iFast PCB is a professional fast PCB manufacturer, we're committed to provide fast PCB Prototypes and manufacturing service to help clients speed up the R&D and shorten their products' time-to-market. Viewing our PCB manufacturing capabilities, get instant PCB online quote for free, our team is quickly available for consulting on your custom PCB needs. Quality-guaranteed, cost-saving, full feature PCB products: Rigid PCB, Flex PCB, Rigid Flex PCB, it's a great choice to save lots of money and time for you

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