At present, Many places local government practices is required to see the operation of the machine in order to give the support of corporate commitment. Many enterprises forced to support start production, resulting in high water level pressure on the stock. In order to alleviate the pressure on the stock, the companies began to cut sale price, so that there is no profit at all, eventually leading to the loss-making; There are some enterprises in order to ease the pressure on the stock, the product credit out, resulting in a huge trade receivables, and increase the risk of corporate finance.
Insiders analysis that the LED capacity surplus is not only because the strength of the market is enough, but also associated with a lot of irrational investment. Government support become the catalyst of this phenomenon. But the operation of the business need comprehensive consideration, such as sales channels, transportation, the supply industrial chain supporting facilities, labor costs, and personnel, etc.
At first, Sales channels, LED enterprises plant in somewhere, they need to consider the marketability of the product. Whether it is the international market or the local Chinese market? If the production base position shall not be ok, it will increase a considerable operating for enterprises.
Second, Transportation. If there is not convenient transportation line, the enterprise products to market cycle will be delay, which is not conducive to sales of the product and it will damage products from different degrees.
Third, Surrounding industrial chain. peripherals do not have a complete industrial chain, or the industry chain is not rich enough, so that it will increase the difficulty and cost of raw materials procurement.
Four, Talent. this is the core of the enterprise. The distribution of talent is regularly to be found. If enterprises where put into production can not find the right people, the core aspects of the production and R & D and sales is bound to bring trouble.
LED insider think that, LED industry is the emerging industries advocated by the government, but businesses should have long term plan in the operation of the project, a long-term view of the development of enterprises, because favorable government policies can not blindly invest in the LED industry. And presently, Capacity relative surplus resulted enormous pressure to the LED lights business, therefore, companies need more government support.