At the 2007 international exhibition of integrated circuits (hereinafter referred to as the IIC), only two relay manufacturer, and exhibitors complain due to relay manufacturers too much, lead to the market competition is fierce, and the price of raw materials is rising, and they are very difficult to cut way to win the market, so the enterprise to face a lot of pressure.

Relay market there has been a most traditional product supply and the balance of supply and demand situation, overall supply most of the relay products. Some manufacturers think that the industry's profitability has not, so out of the field, turn to the other direction. It is understood that in the IIC, only two relay manufacturer, manley fort industrial co., LTD is one of them. Manley fort industrial co., LTD is a production of general relay manufacturer, according to the company manager WuZhiRong said: "the current relay manufacturers a lot, the competition is fierce, but also on the rise, the price of raw materials and the way and it's difficult for us to reduce the price to win the market, so we face a lot of pressure." But at the same time, he said: "although relay profit is low, but we still stay in this industry, because the market demand for relay has been stable, almost all electronic products need it, so the product market is still there."

At present, because of the relay in communications, automotive, industrial control, home appliances and other industries are faced with more and more popular consumer groups, companies in performance more superior products at the same time, market price competition under the pressure, reduce costs become subject of continuous improvement. Unionpay letter analysis: from the point of relay application field in our country, communications and industrial control, home appliances and automotive relay is the biggest market. Demand is gm's largest relay, especially high sensitivity, small, subminiature PCB relays, low-power relays, etc. From the point of market conditions, relay is a large amount of services, the technical content is not high, thin margins, market potential larger competitive industries. But at present, the industry believes that the current our country relay market competition is intense, and raw material prices, increased the burden of enterprises, make enterprises face the great pressure.

Relay market development in our country in recent years, the following conditions to explore the change of market pressure, so as to find out lead to this situation is the root cause of today: in 2000, the relay industry in China with the support of national macroeconomic policy, the economic situation is good in the world environment, the industry in the face of fierce market competition, make joint efforts to rely on scientific and technological progress, has achieved gratifying results, achieve sales revenue of 3.177 billion yuan, in 2000 when the industry more than 2.32 billion yuan in 1999 grew by 36.96%, slower than in 1999 increased by 30.29%, to complete the production in 1.042 billion, more than 723 million increased by only 48.3% in 1999, the growth increased by 11.99% over the previous year, reached unprecedented growth. In 2001, due to the influence of the global economic downturn, the relay industry downturn, however, take active fiscal policy in our country, to expand domestic demand, the economic development, facilitating smooth excessive of relay industry in our country, a small increase in the production. 2001 relay the industry to achieve sales revenue of 3.215 billion yuan, 1.19% higher than 3.177 billion yuan in 2000, growth was 35.77% lower than in 2000; Complete production in 1.092 billion, from 2000 in 1.042 billion was only 4.97% growth, growth than in 2000 dropped by 43.33 percentage points, a drop of it is rare in the history of our relay. In 2002, the global economy begins to recover, the relay market fall is terminated, the relay industry in our country is a stagnant situation in 2001, and has entered a new period of sustained and rapid growth, the industry sales income 4.029 billion yuan, up 25.24% from a year earlier, the increase over the previous year increased by 24.03%; Capacity up to 1.47 billion, an increase of 34.29%, increase over the previous year increased by 29.57%, this is our country relay market to recover the rapid growth of a new characteristics.

In 2003, despite the influence of the Iraq war and the SARS epidemic, however, China's economy is still keeping the fast growth of 8.2%, the national macroeconomic situation and economic policy orientation, to relay industry development in our country provides a good internal environment, 2003 relay industry in China to achieve sales revenue of 4.9 billion yuan, 1.8 billion production. Respectively the relay were 12.00% and 17.38% of total sales and production. This is a relay industry of our country has entered a new round of rapid growth. Since 2004, relay market opened a new chapter in our country. Due to the weakness of the international market, the international relay are open its soil in our country. This year, the international relay giant enlarges the investment in China, almost all the foreign sole ownership tendency is strong, is trying to control relay control of China industry development. To world giant companies omron development in China, for example, in 2004 in shenzhen new 40 power relay and communications relay production line, the new nissan capacity of 15.5 million only. In 2004 sales revenue of 582 million yuan, the company jumped 64.1% over 2003. Triple area in 2005, the group has tripled in Shanghai the production scale of 426 million yuan; And in early 2005, the latest technology - the fourth generation communication relay from Japan to Shanghai production, annual output of 24 million, product model for G6J - 2 p, 10.6 * 5.7 * 5.7 mm, 1 a * 30 v, 140 mw, and 40 ~ + 85 ℃. Due to the Japanese expanding investment, Shanghai omron company has been in the first half of 2005 is completely finished by the joint venture to wholly. Announced the end of 2005, omron in guangzhou, China, open a new auto electronic components production and sales base, in order to meet the global customers demand for low-cost procurement, and strengthen the business and big carmakers in the region. New company funded by omron alone at $16 million. Products include electronic control devices, electric Windows, relay, etc. The company was put into operation in January 2006, and sales in the first quarter of 100 million yen.

Another Tyco international famous enterprises in Qingdao in 2004, began its second phase expansion, 5000 employees, in order to achieve annual sales revenue of $100 million and in 100 million started to produce high-tech products - the fourth generation communication relay, product model for IM, 10 x 6 x 5.65 mm, 2 a x 14 v, 140 mw, and 55 ~ + 105 ℃, products and technologies from Switzerland AXICOM company. In foreign companies to enter China, relay market in China is still maintaining high growth rate, according to the China electronics industry association control relay branch (CCRIA), according to data from the mainland in 2005 there were 293 relay manufacturers, of which 90% production electromechanical relays. Mainland relay output reached about 3 billion, 2005 of 2.49 billion than in 2004 increased by only 17%, relay sales also rose from $2004 in 633 million to more than $680 million, including electromechanical relay in relay accounting for 90% of sales and sales as a whole. By 2006, domestic companies are broke through 300, and 3.5 billion relay, the production increased by 20% than in 2005; Revenue surged to $1.08 billion, increased by 19% than in 2005. About more than 300 at present, the domestic relay manufacturer, has occupied 20% of the world's market, but most of the relay to small and medium-sized enterprises, only 10 to 20 large enterprises, and these relay enterprise mainly concentrated in the southeast coastal areas, such as, Shanghai, jiangsu, guangdong, fujian, zhejiang and liaoning. Due to the numerous industry manufacturers, competition is increasingly fierce, especially in the aspect of price. Most believe that the industry's profit margins have been. Some vendors so out of the field, to the other direction, such as ningbo is tai electronics co., LTD. At the same time, there are several manufacturers to expand product lines, and other electronic components increases, make up for the relay low profit margins.

But the vast majority of manufacturers are still hold in the industry, because the market demand for electromechanical relay remained stable. The personage inside course of study thinks, although relay profit is low, but due to almost all electronic products need it, so the product market. In 2006, rising household electrical appliances, automotive electronics, telecommunications and industrial equipment market is rapidly promote the mainland electromechanical relay manufacturer production of a new round of growth. During a visit to the number of companies, 60% plan to increase production at present, there are some enterprises intend to 100% in the first half of the year to expand production capacity. Radio components, such as suzhou factory co., LTD., according to the demand will increase more than 30% of the forecast, plans to double its production capacity in the years before. From raw material development, electrical steel is relay core material. Along with our country the rapid development of mechanical and electronic industry and household appliances, electrical steel demand is growing. Since 2002, our country domestic electrical steel imbalance between supply and demand contradiction embodied, peaked in 2004, the market for electrical steel prices rose sharply. Plenty of motivation of gap caused by electrical steel market is rapid development of home appliances and motor industry in our country, and electrical steel production capacity expansion velocity is lower than the downstream industry development speed. As domestic manufacturers electrical steel production capacity expansion, imbalance between supply and demand contradiction effectively alleviated.

In general, the production and consumption has been basically in balance, the market supply and demand is relatively stable. But variety, due to the orientation of cold rolled steel pieces are high investment, high technology products, the production difficulty is very big, in the next period will still be in short supply. But the developing trend of the market, car relay market is constantly expanding, this is caused due to the constant expansion of the auto market. Dosage of automobile relay is one of the most passenger cars, general each passenger car an average of 15 relay and some limousines available around 25; Each commercial vehicles with 13 only relay on average, each of which average truck with seven, with 20 per passenger cars. Increase in car ownership society for car relay service market brings new opportunities, commercial vehicles, including vans, buses, etc.) with relay only 5 per car per year on average maintenance, passenger vehicles (including cars, MPV and SUV, etc.) with 3 only.

China's auto production in 2007 is expected to data calculation, social replacement amount calculated at 10% ownership, the total to 2007 automobile relay domestic demand will reach 137.41 million. 2007 output up to 8.37 million cars in our country, the automobile relay for 120.85 million, and 41.4 million with 16.56 million relay's car maintenance, car market in China in 2007 the relay is expected to total 137.41 million, increased by 15% from 2006 to 2006. From the above analysis, we can conclude that at present, the real cause of our country's relay market competition within the main crux of the problem lies in industry. Relay enterprise in our country are mainly concentrated in smaller, failed to form a certain scale of well-known enterprises compete with foreign enterprises, and become a flashpoint in the latter. Moreover, although the relay manufacturing technical requirements is not high, but it is only relative to the other than ordinary electronic products, and electronics manufacturing technology in China lag behind with foreign enterprises it is completely true. So, we can see the current domestic relay enterprise risk source is focused on the production technology behind, the backward production enterprise meet the market changes, natural production, turn even shutdown would happen. But you can see, due to relay the size of the market is still growing, especially automobile relay market is strong, therefore, must belong to the future market