The production of plastic products is first based on the development and design of plastic mold, plastic mold is a basic tool for the production of plastic products, the precision of the mold directly affects the structural integrity and size accuracy of plastic products. The production of all kinds of plastic products needs to go through the links of plastic mold design and manufacturing, injection molding and surface treatment, among which the precision mold structure is complex, the surface quality and technical standards are high, which are technology-and capital-intensive products. the production process needs to apply high-speed processing and ultra-finishing technology, rapid prototyping technology, automatic control technology, polymer material processing and application technology, etc., involving machinery, metal materials, polymer materials, chemical materials, electronic and electrical, automation control and other fields, the technical comprehensive requirements are high.

Overview of 1. Plastic Products Industry

Plastics are plastic materials and a small amount of solid materials made of synthetic or natural polymer compounds as raw materials, plasticizers, fillers, lubricants, injection molding agents and other additives as auxiliary components, under certain temperature and pressure. Plastics have been widely used in modern society with the characteristics of light weight, strong plasticity, low manufacturing cost and wide range of functions. At present, synthetic polymer materials have become an indispensable new material for mankind. They have formed the four basic materials in modern society together with steel, wood and cement. They are one of the basic materials to support the development of modern society and are widely used in information, Energy, industry, agriculture, transportation and other national economic fields. In recent years, China's plastic products industry has developed rapidly and has become an important part of China's national economy.

In 2013, my country's output of plastic products was 61.8866 million tons, a year-on-year increase of 8.02 percent; as of December 2014, there were 14,062 plastic products enterprises above designated size; the main business income was 2039.239 billion billion yuan, a year-on-year increase of 8.92 percent; the total profit was 118.286 billion billion yuan, a year-on-year increase of 4.24 percent; the export delivery value was 226.066 billion billion yuan, an increase of 2.82 percent year-on-year. It can be seen that the scale of the plastic products industry in my country is constantly expanding, and its output has also increased year by year, and the year-on-year growth rate has slowed down in the past two years.

From the perspective of the fine molecular industry of the plastic products industry, plastic pipes and fittings, plastic wires and woven products in plastic packaging are widely used categories of plastics, followed by plastic films and plastic packaging containers, followed by daily plastic products and plastic parts manufacturing.

Among them, the main business income and export delivery value of plastic parts manufacturing industry have shown an upward trend in the past five years, with a particularly rapid growth from 2010 to 2011. The main business income increased by nearly 200 from 237.282 billion yuan to 709.559 billion yuan, and the export delivery value increased from 63.579 billion yuan to 191.426 billion yuan. Although the growth rate slowed down from 2012 to 2014, the main business income is still expanding, reaching 939.413 billion yuan by 2014.

Overview of 2. Mold Manufacturing Industry

Mold is a basic process equipment made of plastic, rubber, metal, powder, glass, FRP and other materials processed by processing equipment. It is an intermediate product in the production process and is used for the production of final products. Mold processing is one of the important ways of material forming. Compared with mechanical processing, it has the advantages of less process, high material utilization rate, low energy consumption, easy production and high efficiency. Therefore, it is widely used in the production of automobile, energy, machinery, electronics, information, aerospace industry and daily necessities. According to statistics, 75% of roughing industrial product parts, 50% of finishing parts are formed by molds, and 80% of parts in the household appliance industry and more than 70% of parts in the electromechanical industry also need to be processed by molds. The mold industry can often drive the development of its related industries, therefore, the mold industry is often referred to as the benefit amplifier.

Although China's mold industry started earlier, but the initial has been as a subsidiary of downstream production enterprises, mold commodity circulation rate is low, limiting the development of mold enterprises. It was not until 1987 that the mold was included in the catalog of mechanical and electrical products. At that time, there were about 6,000 factories producing molds in the country, with a total output value of about 3 billion yuan. After more than 20 years of development, China's mold industry has made great progress. As of 2013, the number of enterprises reached 30000, with an annual output value of 220 billion yuan and an annual export of nearly 5 billion US dollars. At present, the largest market of China's mold industry is the automotive industry, electronic information industry, home appliances and office equipment, machinery and building materials industry. With the rapid development of China's national economy and the improvement of people's income level, the demand for automobiles, electronic consumer products, home appliances and so on is increasing, which makes these industries enter a stage of rapid development in recent years and become an important reason for the rapid development of China's mold industry. The following figure shows the output value of China's mold from 2007 to 2013. It can be seen that the output value of China's mold industry has increased rapidly in recent years, from 87 billion yuan in 2007 to 210.6 billion yuan in 2013, and the growth rate is much higher than the overall level of the world mold industry.

The development trend of 3. mold industry

With the gradual transformation and upgrading of the industrial structure, the gradual increase in the proportion of high-end products, and the continuous improvement of basic supporting service functions, although the growth of plastic products production has slowed down, its value space is still large, and the output value can maintain a high growth rate. It can be seen that the plastic processing industry is still on the rise. As one of the indicators to measure the development level of a country's plastics industry, the ratio of plastic to steel is only 30:70 in China, less than the world average of 50:50, and even less than 63:37 in developed countries such as Germany and 70:30 in the United States. Therefore, with the technological progress and consumption upgrading, China's plastic products industry will continue to develop steadily.

The mold industry is a basic industry in the national economy, specifically involving machinery, automobiles, light industry, electronics, chemicals, metallurgy, building materials and other industries, and has a wide range of applications. China's rapid industrial development, including automobile manufacturing, IT manufacturing and the development of medical equipment, so that the entire mold industry ushered in the development of opportunities.

At present, my country is in a transitional period of industrial structure. The country's target plan for emerging industries is: by 2020, the added value of strategic emerging industries will account for about 15% of GDP. To achieve the target of 15%, among the seven strategic emerging industries, the high-end equipment manufacturing industry will be vigorously developed as a pillar industry of the national economy in the future, and the mold industry, as the mother of modern industry, will benefit from the development of the high-end equipment manufacturing industry.

Relationship between 4. and industry upstream and downstream

At present, the company's products are mainly plastic molds and plastic products, so the upstream of the company's industry is mold steel manufacturers, plastic raw material manufacturers, CNC machine tool manufacturers, ink raw material manufacturers, etc., and the downstream is automotive, consumer electronics, cosmetics, medicine and medical and other manufacturers.

(1) Upstream industry

Die steel in precision plastic molds is the main component of the mold kernel that forms the main part of the molding production. Its price accounts for about 25% of the total cost of the mold. The development of die steel has a great influence on the development of precision plastic mold industry. Under the requirements of high precision, smooth surface and long life of the current precision plastic mold, the processing technology has higher and higher requirements for mold steel. The quality of mold steel is of great significance to promote the development of precision plastic mold products to high-grade, precision, diversification, individualization and high added value.

CNC machine tools are the main processing equipment in the precision plastic mold industry. The development of CNC machine tools is of great significance to improve the precision, smoothness and service life of precision plastic molds, and the development of processing equipment can effectively shorten the mold manufacturing cycle and reduce the mold production cost. At the same time, due to the high price of CNC machine tools, it has a large proportion of fixed assets in the industry. The increase in machining accuracy and the decline in machine tool prices brought about by the vigorous development of the CNC machine tool industry have an important role in promoting the development of the industry.

PC, ABS, HIPS, PP, PET and other engineering plastics are the main materials for product molding in the precision plastic mold industry. They not only have a direct impact on the quality of injection molding products, but also affect the production of injection molding products to a large extent. The supply and price of plastic raw materials have a direct and decisive effect on the output and price of injection molding products.

(2) Downstream industry

The demand of the downstream industry determines the development of the mold and plastic products industry. Since mold products cannot be used for final consumption, the demand for products in the mold industry depends on the market demand for products in the downstream industry. Therefore, the demand of the downstream industry determines the development of the mold industry. However, the development of the mold industry is not determined by the needs of a certain industry alone, but by the development of the entire national economy.

The development of the mold industry has driven the development of the downstream industry.

The mold industry is the touchstone of the national economy, and the development of the mold industry in a country or region can effectively drive the development of other industries. At the same time, with the improvement of the technical level of the mold industry, the improvement of processing accuracy will improve the product quality and performance of the downstream industry, thus promoting the development of the downstream industry.

Since the products of the mold industry are not the final product, but only the processing tools in the production process of the final product, the overall demand of the downstream industry directly determines the demand of the mold industry. If the downstream industry develops rapidly, it will greatly increase the demand of the mold industry and promote the development of mold enterprises.

1) The automotive industry has huge market potential

In recent years, with the rapid development of China's economy and the development of road transport industry, the production and sales volume and car ownership of China's automobile industry have increased year by year. Since 2000, China's automobile market has maintained rapid development. The annual output has increased from 2.07 million vehicles in 2000 to 22.12 million vehicles in 2013, and the sales volume has increased from 2.09 million vehicles to 21.98 million vehicles, with a compound annual growth rate of 20%. China has surpassed the United States as the world's largest auto market.

2) Rapid development of electronic information industry

Since the reform and opening up, China's electronic information industry has developed rapidly, and the industrial scale, industrial structure and technical level have been greatly improved. As one of the pillar industries of China's national economy, electronic and communication products manufacturing industry is a basic industry and strategic industry related to the lifeline of national economy and national security.

On October 10, 2010, the State Council issued "Guo Fa [2010] No. 32" "Decision of the State Council on Accelerating the Cultivation and Development of Strategic Emerging Industries". China plans to use 20 years to make energy conservation and environmental protection, new generation information technology, etc. The overall innovation capability and industrial development level of major strategic emerging industries have reached the world's advanced level, providing strong support for sustainable economic and social development. The electronic information industry benefits from policy support and will develop rapidly in the future, with a huge market capacity. With the development of IT electronic products, the electronic mold market will continue to maintain a stable development trend.

5. industry barriers

(1) Scale barriers

To become a comprehensive mold manufacturers need to purchase a large number of machinery, equipment, instruments, the introduction of professional and technical personnel, need a lot of money. The need for capital scale makes other companies need to cross a higher threshold when entering the industry. At the same time, the service object of precision equipment mold company is mainly large companies, and the business scale of large companies is often large, which requires mold enterprises as an important part of their supply chain must have a large production scale. Only by realizing the production scale can we effectively reduce the procurement cost and production cost.

(2) Technical barriers

The mold industry needs strong technical strength. From the beginning of 3D product design to mold making, injection molding, assembly and surface treatment, the processes are complicated, and these processes affect each other and must be coordinated before and after. Therefore, mold processing technology, quality control level and production management technology are very important, and it takes a long time to practice and accumulate. At the same time, due to the rapid upgrading of plastic products, mold enterprises need to update and improve mold technology, quality control and production management for a long time.

(3) Experience barriers

In the process of mold manufacturing, errors or errors in design, programming and operation will make the mold different from the customer's sample, which will lead to the need to repair the mold. In severe cases, it must be redesigned and manufactured. Mold repair will increase the manufacturing cost and decrease the profit of the mold enterprise. Once the mold must be remade, the mold manufacturer's order will definitely lose money. Therefore, how to avoid the phenomenon of mold repair, loss reporting and rework caused by man-made reasons has become the top priority of the mold enterprise. Only through continuous practice and long-term accumulation, mold enterprises can continuously improve their production management capabilities, establish a set of effective process operation standards, reduce the number of mold repair, and eliminate the phenomenon of remanufacturing. However, this must be accumulated over a long period of time, which is not something that new enterprises can have in a short period of time.

(4) Qualification barriers

The high-quality customers of the plastic mold industry are mostly large manufacturers at home and abroad, and the standards for identifying qualified suppliers are also relatively strict. In addition to meeting industry standards, it is necessary to pass strict supplier qualification. Once the qualification of qualified suppliers is recognized, in order to ensure product quality and maintain the stability of supply, manufacturers usually do not easily change the mold supply channels. This strict supplier qualification and stable customer relationship based on long-term cooperation have formed a strong qualification barrier for new entrants.

6. industry competition pattern

The mold industry belongs to the basic industry in the machinery industry, and all countries have their own mold enterprises. However, due to the different levels of economic development and development directions of various countries, there is a big gap in the technical level of the mold industry in various countries.

At present, the world has formed several major mold producing countries, mainly China, Japan, South Korea and Taiwan in Asia, as well as the United States in the Americas and Germany in Europe.

Japan, the United States, Germany, due to the high level of science and technology, advanced mold processing machinery, has a perfect talent cultivation system, therefore, in the development of high-precision and composite mold, regardless of design capabilities or manufacturing technology, are ahead of domestic enterprises.

However, due to the high labor costs in these countries, customers have shifted their manufacturing bases to developing countries represented by China in order to reduce expenses. Due to the regional nature of mold supply, mold manufacturers have to follow their main customers to establish manufacturing bases in the local area and serve their main customers nearby, which has led to the development of the mold industry in the region, thus narrowing the technology gap between developing countries and developed countries. At present, the domestic injection mold industry competition is fierce, manufacturers process conditions are uneven, and most of the small scale.