Introduction to the development situation of the distribution box industry

Release time:

2022-05-21

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Abstract

According to industry statistical analysis, in the context of a not very prosperous global economy, the distribution box industry, like our country's economy, has still achieved steady progress and stable operation. With the gradual expansion following the construction of power facilities, the demand for distribution boxes both domestically and internationally is generally in an expanding state, and the market prospects are relatively promising. However, there is an oversupply of domestic distribution box production capacity, companies generally lack sufficient independent innovation capabilities, and there is a lack of competitiveness in the high-end market, indicating that the momentum for development is still insufficient.

According to industry statistical analysis, in the context of a not very prosperous global economy, the distribution box industry, like our country's economy, has still achieved steady progress and stable operation. With the construction of power facilities gradually expanding, the demand for distribution boxes both domestically and internationally is generally in an expanding state, and the market prospects are relatively promising. However, there is an oversupply of domestic distribution box production capacity, and companies generally lack sufficient independent innovation capabilities and high-end market competitiveness, with insufficient development momentum.

 

In China's distribution box sector, low-end products are still being produced in large quantities, and these products are large in size, consuming a significant amount of precious metals such as silver, as well as copper, ferrous metals, plastics, and other materials. Many materials are subject to global market prices. Therefore, the situation of rising prices for the main raw materials of distribution boxes is unlikely to change. Additionally, with tight funding, rising financial costs, and rapidly increasing employee wages leading to higher personnel costs, this trend is also irreversible. It will have a significant impact on reducing profit margins in distribution box production. Many companies are already in a state of low profits or losses. At the same time, this poses difficulties for companies to increase investment in research and development of new products and technological transformation.

Therefore, it is hoped that industry enterprises will continuously reduce manufacturing costs through large-scale production of high value-added products. Small and medium-sized enterprises in the industry should learn from the experiences of outstanding companies to accelerate the improvement of enterprise scale efficiency and core competitiveness of products, expand the market share of third-generation products, and develop new products with independent intellectual property rights that are distinctive and advanced. They should carry out technological transformation from a high starting point to enable enterprises to avoid being eliminated from the market due to a lack of competitive products.

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