With the development of science and technology, the industry is constantly subdivided, giving rise to many sub-categories such as aviation, automotive, rail transportation, electronic communications, medical and so on, which have their own characteristics but all pursue precision and quality.
2. Technical Level and Characteristics of the Aluminum Structural Components Industry
(1) Diverse Product Range and High Demand for Flexible Production Capabilities
The downstream industries for aluminum precision structural components are varied, with different types of enterprises having distinct requirements for product variety, specifications, and models. Even within the same enterprise, different products may require different requirements. Consequently, aluminum precision structural component manufacturers need to flexibly produce a range of products according to the demands of the downstream industries. They must continuously adjust the appearance, performance, dimensions, texture, safety, and other parameters of components according to the requirements of downstream manufacturers, devising different schemes to customize specialized structural component products. Given the non-standardized nature of product demands from downstream customers, companies in this industry must possess a flexible production manufacturing system capable of rapidly and promptly producing qualified products of different types, specifications, and models using the same production equipment.
(2) Established Proportional Relationships Among Industries
An important characteristic of the aluminum precision structural manufacturing industry is its extensive coverage of downstream industries, ranging from aerospace to everyday life enterprises that require precision products. The technological level of the products of these downstream enterprises is constantly changing, which needs that the technological capabilities of the companies within the aluminum precision manufacturing industry must develop in tandem. Since precision structural manufacturing enterprises are key suppliers to the downstream application industries, under established product structures and technological levels, there exists a relatively fixed proportional relationship in terms of quantity between the products of downstream enterprises and those of the industry. Therefore, the market demand, industry scale, and development space of the industry are closely correlated with the downstream industries.
(3) Products Exhibit Composite Functional Characteristics
Aluminum structural component manufacturing enterprises typically provide metal structural components and services to multiple clients across various industries. Facing the differing requirements of different industries regarding the appearance, performance, and structure of metal structural components, they produce a variety of products using the same manufacturing system, or the same products using different production processes. Given that the basic performance of the products is closely related to the performance or usage required by downstream clients, there are significant differences in the performance emphasis among different clients.
(4) Strong Stability of Downstream Customers
The downstream industries for aluminum precision structural components includes the communications equipment manufacturing, new energy equipment manufacturing , automotive parts manufacturing, and more. These industries require components with high precision and structural complexity. As a result, they have stringent supplier certification systems. When selecting the suppliers, they conduct extensive on-site inspections, sampling, pilot production, and inspections, which results in a lengthy verification period. Pioneering companies, through close collaboration with downstream customers, keep pace with their product design, cost-reduction needs, and technological iterations, continuously accumulating proprietary technology in mold and product manufacturing, and participate in new technology projects of downstream enterprises. Once a company becomes a qualified supplier for well-known enterprises, it usually forms a highly trusted and stable supply chain relationship with them. Due to the high cost of change, downstream enterprises typically do not easily adjust their stable cooperative suppliers. Therefore, establishing long-term cooperative relationships with downstream customers is beneficial for structural component suppliers to build their own competitive advantages.
3. Analysis of the Aluminum Precision Structural Components Industry Chain
The aluminum precision structural components industry chain encompasses the upstream raw material supply, midstream production and manufacturing, and downstream application segments, with close cooperation. Upstream includes the supply of aluminum and aluminum alloy raw materials (production of aluminum ingots, preparation of aluminum alloy materials) as well as the supply of auxiliary materials and equipment (die materials, processing equipment, surface treatment materials); Midstream comprises the manufacturing of aluminum precision structural components (die-casting, forging, extrusion of formed parts, precision processing, surface treatment, quality inspection, and assembly); Downstream applications are extensive, involving aerospace, automotive, consumer electronics, communications, medical equipment, industrial automation, and other fields, leveraging the characteristics to achieve corresponding functions and advantages.
