Power Rationing And Shutdown Make The LED Manufacturing Industry Face New Challenges

High energy consuming enterprises in some regions have limited power for one week, and some regions have implemented the power consumption scheme of "two days on and five days off" since September 16 (staggered peak shifts are realized every Sunday, Monday, Tuesday, Wednesday and Thursday). At present, many enterprises in Guangdong have received power outage notice!

After the introduction of the power rationing policy, there are sorrows everywhere! Some enterprises said: "It’s ok that the price of raw materials rises, but with the impact of staggered peak power consumption, our mood can not be expressed in words". Power rationing means that the factory cannot be put into production according to the normal plan, which will inevitably cause construction delay, order delay or cancellation, which will not only disrupt the normal production order of the enterprise, but also push up the production and operation cost of the enterprise. In order to solve the problem of power consumption, some manufacturers turn their attention to leasing diesel engines for power generation. However, due to the high cost and limited supply, they can not really solve the current power demand problem.

Behind power rationing and shutdown, there are mainly two factors: first, tight coal supply and high power coal price lead to tight power supply; Second, some regions have adopted energy consumption control measures due to the pressure of dual control of energy consumption. Power rationing and shutdown are sweeping through at least 10 provinces and autonomous regions, including Guangdong, Jiangsu, Zhejiang, Shandong, Guangxi and Yunnan. Affected by this, since September 22, a number of A-share listed companies have intensively issued announcements on power restriction and shutdown.

As a major manufacturing province in China and an important manufacturing base in the world, Guangdong ranks among the top in industrial power demand and load in China. This round of power rationing and shutdown has affected many places in Guangdong, causing a huge impact on the industrial manufacturing field, including LED display manufacturing.

Enterprises in Dongguan and Huizhou are the first to be impacted. You know, in recent years, many LED display manufacturing enterprises have carried out industrial transfer and transferred their production bases to the surrounding areas of Shenzhen, the most of which are Dongguan and Huizhou. They wanted to give full play to the relatively low production cost advantages of Huizhou and Dongguan. However, this layout has been impacted the most in this power restriction policy. Dongguan and Huizhou have already started power rationing, and some enterprises in Shenzhen have also received power rationing notices recently.

This round of power rationing and shutdown has a great impact on energy consuming enterprises. A box manufacturer with a manufacturing base in Dongguan is deeply troubled by power rationing. The factory has changed from "three days on and two days off" in the early days to "two days on and five days off" today. The factory has a large backlog of deferred orders, which can not be completed even if the production is wrong. In addition, the manufacturing of LED display screen also belongs to large power users. In some areas with tight power consumption indicators, relevant manufacturing enterprises are also frequently interviewed, so that some display screen factories can't even arrange the basic aging before leaving the factory as usual.

Since the middle of last year, the rise of raw materials and the lack of capacity of driving chips have greatly damaged the vitality of the LED display industry. The sudden power restriction and shutdown in many places this year are like "adding insult to injury" to the LED display manufacturing enterprises that have just stepped out of the impact of the epidemic.

To solve the problem, we also need to actively adjust the strategy. Firstly, under the condition of limited power supply, reasonably arrange production and readjust the company's production plan according to the requirements of peak load shifting power consumption. Secondly, to avoid order default, it is also necessary to increase the capacity allocation in the industry and allocate the urgently needed capacity to areas with loose power restriction measures. Although the news of power rationing and shutdown broke out in a few areas in Shenzhen recently, it is mainly aimed at high-energy consumption enterprises. Most LED display manufacturing enterprises have not been greatly affected by power rationing measures, which also proves that the power supply demand in Shenzhen is guaranteed temporarily. As the most important display screen manufacturing base in China and even in the world, Shenzhen's production capacity is also guaranteed. Although some enterprises implementing industrial transfer will be affected to some extent, there is still no problem in seeking OEM production in Shenzhen.

With the end of the peak power consumption in summer and the strengthening of coordination of power supply by the state and local governments, the tension of power consumption will be fundamentally alleviated. At present, the phenomenon of power restriction and shutdown is only a temporary measure. China's manufacturing industry, including LED display manufacturing enterprises, will keep the clouds open and see the moon bright, and bid farewell to the "haze" of power restriction.