[PCB Information Network] News: Factory owners are crying out in despair, and this year seems particularly tough.
Some have described the current state of small and medium-sized manufacturing factories as follows:
“
Worrying about orders when there are none;
Worrying about payments when there are orders;
Long-time partners have fewer orders;
New clients are hesitant to pay;
Orders that can be paid in cash are too small;
Large orders that can be paid in cash have no profit;
Orders with volume and profit require credit;
High volume and high profit orders, if completed, may lead to bankruptcy.
It’s heartbreaking.
These are all harsh realities.
In the PCB industry alone, the phenomena of lacking orders, difficulty in collecting payments, price reductions, and even accepting orders at a loss are rampant.
Bankruptcies are occurring one after another.
In just over a year, several PCB companies such as Jiangxi Xinhua Sheng, Kunshan Huasheng Circuit, Shenzhen Xingqifa, Shenzhen Yaode Technology, and Tiancheng Hengfa have been reported to be in bankruptcy liquidation; news of the shutdown of the old circuit board factory Guangzhou Shengde has also surfaced.
How many other companies in the industry have quietly collapsed during this harsh winter?
No one knows.
It’s unimaginable.
A PCB company manager recently stated that the overall situation in the manufacturing industry in the first quarter of this year is very bleak, estimating a net loss of 5-10 percentage points, and this situation may continue until the end of next year.
Some netizens have expressed that this view is too pessimistic.
However, more people are silently agreeing with likes.
Looking at the revenue and profit data of publicly listed PCB companies in the first quarter, it indeed makes one gasp.
According to incomplete statistics from PCB Information Network, among the 46 PCB companies that disclosed their performance for the first quarter of 2023, 36 companies experienced varying degrees of revenue decline, 31 companies saw profit decreases, and several companies even reported losses.
If large listed companies are struggling, one can only imagine how difficult it is for small and medium-sized enterprises.
Some industry insiders revealed that they work in environmental protection and have many dealings with circuit board companies, and many of the enterprises in the circuit board park are reflecting that it has been very difficult these past two years, with office employees working four days on and three days off.
Some small and medium-sized factories and upstream processing plants are in an even more difficult situation. Some owners have stated that in order to support their employees and keep the factory running, they have been accepting orders at a loss, and even resumed taking on orders from particularly difficult clients to collect payments.
Every word conveys pain.
What drives many owners to despair is that they see no end to these hard times.
The current global political situation is complex and ever-changing, with inflation data from major economies, primarily in Europe and the United States, remaining high, which in turn affects consumer purchasing power, subsequently impacting global markets for electronic consumer goods, automobiles, and more.
With the downstream in dire straits, PCB, as an upstream link, cannot smile either.
Additionally, the Ukraine crisis and the increase in extreme weather in recent years have caused fluctuations in global energy and commodity prices, which also brings uncertainty to raw material and energy prices, putting PCB companies at risk of rising costs.
Of course, there are some PCB companies that have chosen the right path and are strong, receiving orders hand over fist during this period.
In this situation of stark contrasts, it undoubtedly becomes an important time for the entire industry chain to adjust, clean up, and reorganize.
For some owners, this is a golden opportunity to grow stronger.
But for another group of owners, it is a life-or-death moment.
In short, the survivors will be the kings.
If you do not want to be eliminated,
you must control losses and maintain cash flow!
Control losses and maintain cash flow!
Control losses and maintain cash flow! (Important things are worth repeating three times!)
Wishing everyone can become the remaining king.
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Written by/PCB Information Network
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