Stamping/Welding

According to statistics, China has more than 250,000 stamping companies( includes stamping press manufacturers, stamping die manufacturers, stainless steel stamping manufacturers, electric motor stamping manufacturers, hot stamping suppliers, rubber stamping companies, automotive stamping companies, deep draw stamping companies…) and over 2 million employees in this field. 28 million tons of stamping parts with total sales of 400 billion annually, consumption of 45 million tons of steel plate, less than 3mm thin, annually, 40 billion RMB for purchase of stamping mold (only refers to cold mold), 20 billion RMB for new equipment. Compared to casting technology, stamping technology improves efficiency in metal forming while reducing costs. Stamping industry products are mainly used in auto parts and electronic products parts, electrical products parts, so the development of downstream industry will directly affect the development of the stamping presses manufacturers.

(1) Automotive and auto parts industry
Since the 21st century, with the rapid development of China's national economy and the improvement of people's living standards, China's automotive industry has maintained a steady growth trend.
In recent years, the rapid development of new energy vehicle industry brings new development opportunity to stamping press manufacturers.

(2) Electronics
3C products refer to the combination of computer, communications, and consumer electronics. As a downstream application of stamping industry, its impact is relatively large for metal stamping suppliers.

(3) Electrical products industry
Besides widely used common stamping material for large number of parts, copper is also used for electrical products.

In recent years, China has gradually become the world's manufacturing center, especially for household appliance industry, automobiles and electric motors and other industries to get rapid development demand of metal stamping parts. Many multinational companies not only set up new manufacturing plant in China but also bring more supporting factories to China. Thus, it increases procurement volume and also drives the rapid development of related domestic industries such as stamping industry.

We categorize China's metal stamping companies into 3 types:

• Mainly foreign-invested stamping suppliers come to China market together with their main customer. Good quality, good management system and high price. Generally speaking, such stamping manufacturers do not participate outside market competition because of price. Their production capacity is limit , mos of time, not fully utilized.
• Small-scale stamping manufacturers: with not good equipment; mold development capacity is weak or does not have mold development capacity; lack technical; low product quality grade, their target customer is small and medium-sized company, limited to the same region, cost-sensitive, product quality requirements are not high.
• Standardized private companies: their business have reached to a certain level; with advanced equipment; hire some senior staff from market or have good training system for employee reserve (technology, management, market, etc.); with independent mold design, manufacturing capabilities and production process improvement; innovation ability; with mature and professional manufacturing and quality assurance system; with large-scale order production capacity, can handle customized requirement and high-end products; with strong product development capabilities, process design capabilities, reliable product quality and low cost. Now , the number of such companies in China is small.

In general, as for middle and low-end products, market entry barriers is low but with fierce competition. As for high-end market, there is still much room for further growth.
Most of China's stamping companies are small. And a huge number of family workshop-style stamping plants provide ordinary stamping products to market. These stamping manufacturers have great difference with those high-end companies who own good employee, good equipment and good technology. It is easy to set up a new stamping plant, but if you want to be a large-scale, specialized metal parts manufacturer, you need pay attention to following points:

(1) Improving technical capabilities
Precision metal stamping technology is a composite tech, combining metal manufacturing, new materials science, mold design and manufacturing, information technology and other technology. The technical capability both in development process and manufacturing process is strictly required since quality requirement of metal stamping part is high.

(2) Improve customer service capability
Large-scale, professional stamping suppliers usually come into contact with leading customers in downstream industries. And these customers have high requirement over product quality and supply stability. In order to maintain product quality and stability, customers are always critical when selecting new suppliers. The selection criteria covers the supplier’s technology, equipment, human resources, production process management, quality control, management system, financial situation, capital and etc. The average qualification time from quotation to mass production takes about one year. If it is a new product, it will spent much time for market feedback. It takes longer certification time. Once customers have established trust in stamping manufacturers, their loyalty will be high. Newly entered precision stamping parts suppliers need take patience to obtain customer’s trust to start long-term cooperation.

(3) Reserve of talents
Most manufacturers lack of senior mold design staff and other senior technicians. The senior technician’s salary is higher and most senior staff prefers joining big and famous companies. Therefore, how to attract and retain the industry's outstanding talent also needs to be considered.

(4) Investment
High-quality metal stamping parts requires advanced equipment and high-quality mold, thus metal stamping factories have to buy expensive mold design software, mold processing equipment and advanced stamping equipment. And since it needs to have the same process technology innovation ability and new product development capability, so investment need to be prepared in advance.

(5) Improving management capacity
High mix, low volume order is common. Only with systematic management ability, can timely supply and continuous quality stability be ensured. Advanced management capacity is accumulated from long-term production and operation experience. We can not expect to establish an efficient management team and an orderly management system in a short period of time, because it must take long-term determination and action.