The development of the LED industry has shown a new development trend: the supply of LED chips is in short supply, and the upstream LED chip leading enterprises are busy expanding production and increasing prices; the midstream LED packaging capacity has increased, and the trend from semi-automation to automation is obvious; the downstream LED display market has broad prospects , the average annual growth rate will exceed 20%, and China will become the most important production base for LED displays in the world. From the overall perspective, the trend of the LED industry is very optimistic, and the development of the LED display manufacturing industry is also very good.

  However, in the manufacturing industry, there are still many indelible problems for LED display manufacturers. Some of these problems are caused by the manufacturing industry itself, while others are long-term problems in the bad management of enterprises. But in any case, these problems have deeply troubled the development of LED display companies. If these crises cannot be recognized, even if LED display companies have a good industry development situation, they will still be complacent and miss good opportunities for enterprise development. So, what are the potential crises of LED display companies?


  Potential crisis for LED display manufacturers, LED display manufacturers, LED enterprise upgrades
1. The rise in labor costs makes automated production unable to keep up
Previously, "Made in China" may have been synonymous with cheap products, supporting its status as the "world's factory" through the advantage of low labor costs. However, with the rapid development of the domestic economy in recent years, China has gradually subverted to the people of the world. Create a "cheap" impression.
It is precisely because of the rising wages of "Made in China" that the living standards of the domestic people have also been greatly improved. However, this is undoubtedly a huge disaster for China's manufacturing industry, which is superior to global manufacturing in terms of labor costs, and rising labor costs is also a problem that LED display manufacturers must face head-on.

2. Entering the big misunderstanding of sacrificing quality to reduce costs
At present, China's manufacturing industry is showing the general characteristics of "slow and steady, limited recovery". Under this situation, LED display enterprises need to carry out some substantial reforms to improve production quality, effectively reduce labor costs, enhance independent innovation of enterprises, and achieve further development under the dual drive of cost and technology.
As far as the LED display industry is concerned, under the favorable circumstances of the industry, the market demand has soared. From the end of 2020 to the present, many manufacturers have increased production investment, expanded production capacity, and kept running on the road of expanding production and increasing income. Although the overall situation is very good, it cannot be ignored that some small and medium-sized LED display companies have not hesitated to reduce product production quality and production inspection links in order to expand production capacity at limited costs, resulting in uneven product quality in the industry and frequent engineering accidents. If this phenomenon cannot be eliminated, even if LED display companies achieve cost savings and reduce investment, they will not be able to seek greater profits for the company, but will bring about a crisis of survival for the company.

3. Irregular production management results in waste of resources
At present, only a part of China's manufacturing industry is large-scale foreign-funded enterprises and state-owned enterprises, and a large proportion are private enterprises. Relatively speaking, there are many large and small enterprises in the LED display industry. In the face of fierce market competition, they also have to consider the serious consequences of non-standard management and operation in production, the waste of production resources and the increase of costs. , always reminding all LED display business owners to constantly think about how to do production management, so that the operation of the enterprise is smoother and the cost input is clearer.
In order to adapt to the rapid changes in the market and environment, enterprises must strive to improve the flexibility of the production system, in order to continuously introduce new products according to market demand, and adapt the production system to diversified production, so as to quickly adjust production and change varieties. Therefore, for enterprises with more urgent needs for improvement, the improvement of production management is imperative.

4. Ignoring the competition in the brand building industry and getting out of the game
China is a big manufacturing country, but not a big branding country. The current crisis in China's manufacturing industry has once again triggered people's debate on corporate brands. According to data, the average lifespan of Chinese private enterprises is only 2.9 years, and the average lifespan of large enterprises is only 7-8 years. The life cycle of Chinese local brands is very short, which is very sad. This is also the weak competitiveness of Chinese brands. a prominent performance. If an enterprise does not attach importance to brand building, even if it does not even have its own trademark, what is the brand competitiveness? Therefore, if an enterprise wants to succeed, it must improve its brand competitiveness. If it does not attach importance to brand strategy, the enterprise will be out of the competition in the future.

  China is an important production base for LED displays in the world. China's LED display industry occupies a pivotal position in the world. However, among the large number of Chinese LED display companies, there are only a handful of well-known listed companies that can enjoy international reputation. Companies with high reputations are even rarer. Under the circumstance that the competition in the LED display industry is gradually intensifying, the competition among LED display companies is more about the competition of brand and strength, corporate brand building, and LED display companies cannot be ignored!

  It can be seen that LED display companies are still facing various business and management crises under the favorable situation of the industry. These problems are the problems that exist in the survival and development of many LED display companies, and are often required in the fierce market competition. Instead of staying for a long time, it is better to take advantage of the good situation in the industry to make internal adjustments in the enterprise, use the correct method to realize the innovation and transformation of the enterprise, and meet the greater market opportunities with a better attitude.