The Price Trend and Future of Fuses
We know that in recent years, especially since 2016, domestic factories have increased their machinery and equipment on a large scale, especially the increase in square and SMD fuse automata, which has led to a continuous decline in these products in China. Especially, the price of square fuses has become transparent to the point where customers do not want to negotiate. There are actually several reasons for this situation:
1: It is the continuous decline of the Chinese yuan, the constant hovering of the US dollar eXChange rate, and the depreciation of the Chinese yuan
2: There are too many homogeneous products, and in order to win more orders, we can only continuously compress profit margins, which is a common problem in the domestic manufacturing industry
3: After the tax increase in the United States, many orders have been sharply reduced, especially the significant impact of large customer revenue, further forcing fuse factories to compress profit margins and dilute operating expenses in order to maintain normal factory operations
4: A large number of small workshops are squeezing the market and driving down product prices
For conventional products, prices are gradually decreasing and profits are constantly compressing, which forces many factories to think about where their future profit points are? How to increase the company's revenue! Fuses are affected by price, where is the future?
So many companies began to enter other industries in the fuse industry:
1: Temperature fuses, which are mainly produced by Emerson, NEC, YB, and SET, have a large proportion and relatively high profits. As a result, some companies have gradually shifted from current fuses to temperature fuses. Especially since 2017, after the introduction of the Philips lighting product plan to add temperature fuses, there has been an explosive increase, but domestic factories have not yet added more machines, I believe there will still be long-term development in the future, after all, Osram and GE have not yet put in effort
2: Fuses, traditional electronic products, have become increasingly competitive, but high-end fuses are still between Lite and BUSSMANN. Therefore, some companies are learning from Lite and hope to imitate their high-end products and earn more profits. This is by continuously increasing investment in equipment and certification. There is not much increase in the short term, but there is good development in the long run!
Fig.1
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