CNC is facing a Bigger Test for the Shortage Hardware Orders

Shenzhen Test Fixture Manufacturer: WSTIANMAO Information

Crisis is just around the corner when all people go crazy.

On Oct.16, Shenzhen Jiang Fen Cicai Factory (002600.SZ) released the restricting plan to acquire the stock right of the electronic product supplier’s named Dong Fang Liang Cai Company. On October 12, Shuo Bei De Company (300322.SZ) released a report and wanted to use 112,000,000 RMB to buy the new registered capital of the Li Mei Industrial Com., Ltd.

CNC of the Test Fixture:

Excess Capacity makes the price collapse

Metal shell makes a better quality, especially driven by Iphone, others mobile phone have also been imitated. With a large demand of the metal shell for smart phone, CNC Industry has been attracted a large amount of money, and relevant factories spring up like mushrooms.

There were some suppliers telling to the << Mobile Phone Newspaper>> that the equipment sales volume had been raised gradually from 2011 to 2014. A t that time, the CNC suppliers were no need to worry about the selling and capital, because the bank was very confident about CNC market and they provided financial leasing to the enterprises.

With more and more capital invented to CNC, the production of CNC equipment had been raised rapidly. According to incomplete statistics, there were more than 300,000 sets of CNC equipments in Guangdong province and over 100 factories.

CNC Test Fixture:

It is reported that the CNC machine tools is sit on the shelf in some extent this year, even high up to 60%. Luckily, the utilization of CNC market is steady recovery now, but it is still not so optimistic.

On one hand, it is lack of orders. On the other hand, CNC equipments increased too fast before and resulted in oversupply. In order to survive, these CNC factories waged a price war, so the CNC processing fee drops from 1.5-2 RMB per min to 0.8 RMB per min. Its decline rate achieves 50%-60%, it is nearly no profit.

The CNC processing factories cannot receive orders and then the CNC equipment factories also suffer from it.

A CNC equipment businessman told << Mobile Phone Newspaper>> that the price of a set of metal CNC equipment was 280,000 RMB last year, but now drop to 220,000 RMB. In addition, the tape of payment becomes easier from 30% down payment to free deposit.

Many insiders complained:' The bank tightens the credit, and everybody is not easy, some worry about the orders, others worry about the commission.’

In fact, it is just a small winter for the metal CNC mobile phone factories, and the real winter will come in March, 2017. Because the mobile phone consumer market also has off season and peak season. Up till now, the utilization of CNC processing factory has been raised than before because the peak season is coming. After the National Day, the Spring Festival, and the Christmas Day, the CNC market will soon go into the off season. Next year, from March to May is the temporary shortage for the factories, and they will again face the dilemma.

In the situation of oversupply and no orders, in next year of March, CNC industries will face a tough time and those no core competitive factories would be squeezed out.