PCB Industry Distribution in ChinaJuly 12, 2013
Since the discovery of the PCB technology, many industries have being developed and grown from regional to a global scale in less than three years. This is clear proof that this niche is quite prosperous and promising if the plan is well executed and managed. However, there are a number of problems that crop up as the industry grows. Unfortunately, these problems only occur when least expected or when the business is at its peak. Understanding these challenges and learning how to cope with them is one of the sure ways of ensuring that your industry succeeds.
As the industry grows, the production increases and this in turn increases the need for more labor force, water, electricity and environment. All this factors are not cheap but they are affordable if well planned for. It is believed that in the next few years, electronic products will enter the micro-profit age due to various market forces such as competition. It is a well documented fact that prices and competition has great impact on the supply chain of any market that is not a monopoly. In Asian, China benefits from low cost and readily available market. The costs and downstream industry transformation are some of the factors that have led to gradual shift of PCB Industry to China.
Technological advancements have led to various developments which favor establishment of PCB industries. Many entrepreneurs are now investing in these industries. A research that was carried out by Chinese PCB Association shows that there are over 1500 PCB companies in China. Take note of the fact that this census did not cover areas such as Chinese Taiwan and Chinese Hong Kong. This means that if all the regions were included in this research, the total number would increase significantly. The study also realized that most of the industries are located along the The Pearl River Delta, Circum-Bohai Sea Zone and Yangte River Delta region.
Southern, Eastern and some parts in the North are some of the major PCB production centers. The southern region accounts for 55%, Eastern accounts for 33% while Northern region accounts for 12% of the total PCB output value ratio. The Pearl River Delta which is located in the Southern part of China is the leading electronic zone since it covers virtually all segments of the PCB market. Each segment has a different professional level. The price tag on the services also varies. The criteria that each company is using to meet its demand is also different. For example, there are companies that aim at producing large quantities at a low cost while others aim at fast sampling of small quantities of products such as tools and electronic gadgets.
One may be faced with a problem when selecting the best supplier due to the large number of suppliers that sell these products. It is recommendable to choose a supplier who meets your specific needs and preferences amicably.
Yangte River Delta region which is located in the eastern parts of the country has its own private economy that is highly developed. Companies in this region usually produce circuit plates as well as small household electronic appliances. The cost of producing this products and their demand is very high in this area. Some of the companies located in Wenzhou and Zhejiang areas have lowered their production costs in a bid to reduce the price tag on these products. However, this can impact the quality of the products negatively hence it is not recommendable to produce circuit plates in these areas.
Just like other countries, Chinese PCB Industry is recording a high loosing competition rate and the profit margins recorded by different companies are very similar. There are very many PCB Downstream products in the market today. Most industries produce these products as per the customized requirements of the downstream products. Since the market for downstream products can be segmented, companies can decide to specialize in one particular niche. Note that the investment scale and operation are very flexible and compatible with the low market centralization.
Some of the leading Chinese PCB Industries are Tianjin Printronics Circuit Corporation, Guangdong Goworld Co Ltd, Guangdong Chaohua Technology Co Ltd, Wus Printed Circuit Co Ltd, Shenzhen Fastprint Circuit Tech Co Ltd and Huizhuo CEE Co Ltd. Most of them are named based on their geographical location for easier identification.