Analysis of Development and Prospect of Resistor Potentiometer Industry

In recent years, the resistance potentiometer industry has developed rapidly. Following Taiwan's factories, it has entered the Chinese market and the domestic resistance potentiometer industry has become more competitive. Most of the products brought by Taiwanese companies are low-end products, especially low-end products, and their patent level, or technical content, is relatively low. In China, there are a number of resistance potentiometer companies in the Yangtze River Delta and Pearl River Delta, but their economic development has been uneven. Like some private enterprises, they can also earn some money, but the low grade of products can be said to have little technical content. The number of state-owned enterprises left behind by the state’s support has now been small, and most of them are now in a loss-making state of operation, with poor economic returns. The main reason is the lack of high-end products. There are many low-end products, and the shipments of low-end products are also very large. We also export resistance, and the quantity is also large, but the amount is not large. Because of its low technological content and the fact that so many manufacturers are competing, it is really difficult to sell a good price.

Now, the low-end products are facing a difficult problem, that is, vicious competition, which is disorderly, individual, and low-level competition. Market competition should not be such competition. Why we are in this situation, that is, the technology content is too low, leaving the price competition. Everyone has no competition in technology content and quality, and they compete for prices. You scored 9 cents for me, 9 percent for me and 8 for me. In the end, many companies were unable to survive. Now the profitability of the resistance industry has dropped to the point of calculation. A good profit has one to two cents, and even a poor one cannot earn. The recent increase in raw material prices has made many companies close to unprofitable operations.

How to Solve the Problems in the Development of Domestic Resistive Potentiometer Industry

If companies do not have core competencies, if we continue to be such a disorderly and low-level competition in the future, then the whole industry in the future will suffer losses. Therefore, we must have a mind to make things, and products that are not made by the mind are not competitive in the market. With the development of the market, the survival of the fittest will certainly eliminate some companies. Only the adjustment of the market economy will change such a vicious competition situation, and many companies will dismount them. The reason for this is because companies do not have professional and technical personnel, and many corporate executives do not understand this knowledge. Not only that, even with talent, technology and equipment can't keep up.

Manufacturing technology can not be self-actualized overnight, and if it is developed from low-end to high-end, it will definitely take too long to develop from scratch. Do you think that the introduction of advanced technology or equipment will keep you from being eliminated in this market?

To develop it depends on research and development. The introduction of patented technology or equipment is unrealistic, because the introduction of these prices are very expensive, need tens of millions or even hundreds of millions of the introduction of funds, too much investment. The return period for this basic industry is too long. Before the debt is paid off, the company may have been dragged down. Still, we must rely on independent self-development to gain a foothold in the market.

About the current policy of the country on the resistor potentiometer industry

From a national point of view, there is no special preferential policy for traditional products in these basic industries. In some places, there may be preferential tax exemptions for local companies. However, from the perspective of traditional enterprises, the state generally will not give too much preferential treatment, but let the company develop itself. Only like some military companies, the state will support them.

Analyze the development prospects of the resistor potentiometer industry

The resistance potential industry has a lot of room for development and there is no limit, especially high-end products. In the case of notebooks, in the 1960s, computers were very large, and one of the components in the computer was large. But now the computer is very small. Since the birth of personal computers, the world market soon introduced this thing, which has a resistance. The original resistance was as large as a fist, and now the resistance is as large as a grain of rice. There is no end to the development of science, and the development of some products may be relatively small, but in terms of resistors, its use is very wide. Many of our industries use resistors. As long as analog circuits and digital circuits exist, it exists. At present, the prospects for development are still very large. Not only is it forecasted, but the market that can be seen now is very large.