Enterprise risk is concentrated on key customers: relatively concentrated customers are a common phenomenon in manufacturing companies. Most of the customers in this industry are large home appliances, equipment, and equipment domestic and foreign enterprises, which are easy to become long-term stable high-quality customers. Excessive customer concentration will still bring risks to the company's operations. If major customers fluctuate or reduce their share of purchases from the corresponding wiring harness company, this will have a significant impact on the company's business.
Human resources risk: There are many types of products in the wiring harness industry. In order to maintain stable quality, the production management of the enterprise puts forward higher requirements on the management level of managers and the level of production personnel. With the continuous deepening of the traditional industrial transformation of modern manufacturing, the market size of the wire harness industry will continue to expand, and the demand for outstanding talents and management personnel will become stronger and stronger. Due to the inability of the scale of development to keep up with the changes in the market or the ineffective implementation of incentive mechanisms, the loss of technical personnel in the industry has led to certain risks in the human resources of the wiring harness manufacturers.
Risk of price fluctuations of important raw materials: Copper, connectors, wires and cables are the main raw materials in the wiring harness. The three main raw materials account for about 90% of the main operating costs. These materials are closely related to the prices of crude oil and copper. Therefore, fluctuations in crude oil and copper prices directly affect the prices of raw materials in this industry. In recent years, the prices of copper, connectors, wires and cables have continued to fall, which is conducive to the decline in production and gross profit margins. However, it does not rule out the possibility of future price fluctuations. If the price of raw materials rises and the company cannot effectively control it, it may have a negative impact on the profitability of the industry.
Quality risk: Vicious and disorderly competition is the current market environment for small and medium-sized wire harness companies. The proliferation of counterfeit and shoddy products and vicious price reductions have prompted small and medium-sized wire harness companies to take more measures to reduce product prices and participate in market competition. Some small and medium-sized wire harness companies cannot improve product quality and technical levels. In order to obtain legal profits, many companies are unwilling to Investment resources in quality management. Cracking down on counterfeit and shoddy products and formulating competition rules are important measures to standardize small and medium-sized wiring harness companies and strengthen quality management. Therefore, when choosing a supplier, the lower the price, the unsatisfactory price, and the price of the product is lower than the value of the product itself, which shows that the cost will definitely be reduced in other aspects.
In a larger and stronger industry, we believe that it is more important to serve customers, strengthen our own corporate strength, and only provide customers with competitive products. Medical harness manufacturers welcome customers to inquire.
