China's Injection Mold Industry Barriers

- Feb 24, 2019-

China's injection mold industry barriers

(1) Technical barriers In the current market situation, customers have non-standardized product requirements due to market competition.

   Small batch, flexible and rigorous delivery, structural parts production to meet market and customer needs

Enterprises must have a fast response capability and a flexible and flexible production system, and establish a rapid response mechanism in raw material procurement, mold development, sample samples, production and processing, quality inspection, product assembly and tracking services to ensure the production of the same production equipment. Products of different specifications and models. Small-scale suppliers that do not have development strength and technical experience are more difficult to participate in product development. Product development capabilities and manufacturing capabilities are an important barrier.

(2) Management barriers Generally speaking, OEMs or Tier 1 auto parts manufacturers will strictly select their suppliers and

control. First, as a supplier of parts companies, it is necessary to establish a customer-designated internationally recognized third-party quality.

    Quantity system, such as ISO/TS16949 or ISO: 13485; Secondly, due to the use characteristics and precision requirements of the mold, plus the characteristics of single-piece small-volume production, many processes, long production cycle, high delivery time pressure, mold production management The requirements are very high, requiring mold companies to adopt lean management on raw material procurement, product design, manufacturing, assembly and test, order management and after-sales service. The high level of management comes from an efficient and streamlined management team and ongoing management technology updates. It is difficult for companies newly entering the industry to establish an efficient management team and a stable management mechanism in a short period of time, making it difficult to obtain customer orders.

(3) Customer barriers Customer barriers mainly exist in downstream customers' quality and production of precision injection molds and product manufacturers.

   The recognition of energy has established a higher standard. For example, due to the establishment of a global automotive industry international division of labor cooperation system,

Vehicle manufacturers have widely adopted the global division of labor cooperation strategy and global procurement strategy of parts and components. The whole industry has gradually evolved into lean production, externalization of non-core business, globalization of industrial chain allocation, and streamlined management institutions. . However, considering the factors such as product development and product quality, OEMs have set strict access requirements for the production scale, product quality and safety, and follow-up support services of their supporting suppliers.


   To occupy the market first, it will often gain more market advantages and form a long-term strategic partnership with buyers, which has a high degree of exclusivity. Even with new competitors, in order to avoid product quality risks and continuous supply risks, as well as the time spent on product certification, downstream customers generally prefer the original mold and structural product suppliers.

(4) Capital barriers The precision plastics industry is a capital-intensive industry. On the one hand, downstream customers are mainly distributed in the market process.

   The automotive and consumer electronics industries with high degree of competition and fierce competition in the industry, the timeliness of product supply, production

   The stability of scale and product quality has high requirements. This has led to high capital requirements for precision plastic injection molded products and mold manufacturers in the process of purchasing and building plants, purchasing production and testing equipment, and maintaining necessary stocks of raw materials and finished products. On the other hand, the global automotive industry has a high concentration of industries. Domestic and foreign OEMs and Tier 1 parts manufacturers often occupy a certain bargaining power, and their credit period is relatively long, which causes considerable liquidity pressure for their upstream enterprises.

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