With the end of the annual Spring Festival holiday, factories around the country began to resume production. Jiahe technology officially started production on February 10th. On the second day of commencement, did you return to the normal work rhythm?

In the past 2021, “shortage and price increase” has become the “keyword” of the electronic industry. The price of bulk commodities has risen sharply, international shipping is tight, and problems such as lack of power, workers, chips, and containers have occurred at the same time. The contradiction between strong market demand and scarce resources is prominent, which makes the wiring harness industry experience unprecedented challenges. Among them, the prices of harness raw materials, such as connectors, gold, plastics, copper, brass, and steel – have risen sharply. Bishop said that by October 2021, the cost of these materials had increased by 42.5%. At the same time, the rising cost of raw materials and the strong demand for wire harnesses have led wire harness manufacturers to raise prices one after another. It is expected that wire harness companies will raise prices at least twice in 2022, and the average price increase in each half-year might be expected to be between 4% and 6%.

Price increase of foreign connector manufacturers & Extension of delivery time

For a long time, foreign connector enterprises have been facing the problem of long delivery time. In 2021, the global economy continued to recover. Due to the COVID-19 epidemic and the rise and shortage of raw materials, the delivery time was extended again, and many foreign connector manufacturers such as TE, JAE, HRS, and Molex changed the delivery cycle one after another. At present, large foreign connector manufacturers are still in a state of large-scale shortage. At the same time, it also accelerates the return of foreign orders, and the Chinese substitutes of connectors used on the harness welcome the opportunity again.

A new round of epidemics swept Southeast Asia, and the manufacturing industry was impacted

In order to reduce labor costs, many manufacturing enterprises have set up factories in Southeast Asia in recent years. However, in the first half of 2021, the coronavirus mutation virus broke out in Southeast Asia, which forced local factories to shut down. At the same time, it also widened the gap between automotive electronics and consumer electronic components, casting a shadow on the already tight chip resources. At the same time, it also slowed down the pace of enterprises planning to set up factories in Southeast Asia.

The wiring harness industry is only a small epitome. We cannot decide when the crisis can be lifted, but in the deep wire harness industry, we can live up to ourselves only by working hard. 

That’s the end of the above. Thank you for reading.