(1) Technical factors
The production process of UV curing new materials is relatively complex. In addition to the manufacturer’s own patented technology, it also requires rich production experience to produce high-quality products.
Due to the instability of raw acrylic acid, the process control process is required to be very precise, and many detailed process parameters can only be obtained through long-term experience accumulation.
In addition, since many UV curing new materials are formulated products and need to be formulated with different performance varieties, customers hope that UV curing new material suppliers can meet their diversified needs and achieve one-stop procurement.
This requires companies in the industry to have the ability to continuously develop new products according to market needs and make them available for large-scale production. This has set a high barrier to the technical level and product R&D capability of new entrants.
(2) Talent factor
In addition to relying on technology and process flow, the production of fine chemical industry requires high production experience of front-line workers and technicians. Fine chemical enterprises need to rely on advanced equipment, excellent production technology and reasonable allocation of experienced operators to produce high-quality products.
UV curing new materials, many production equipment, complex process links involved, strict setting and control of reaction ingredients, reaction temperature, reaction time and other parameters, all of which depend on the experience accumulated by the enterprise in many years of production practice.
Therefore, due to the lack of technicians and production personnel with rich production experience, it is difficult for new entrants to form market competitiveness through simple capital investment and equipment investment.
(3) Market factors
As downstream customers have high requirements for the quality and stability of fine chemical products, according to the current practice of chemical raw material purchasers, customers need to conduct a series of tests and trials before using the company’s products.
After the quality of the company’s products is recognized, it is not easy to change suppliers, especially for large purchasers and foreign enterprises.
Therefore, it is often difficult or takes a long time for new entrants to obtain customers’ trust and orders.
In addition, because the downstream customers have certain geographical characteristics and are relatively scattered, the company needs to establish a marketing network all over the country. At the same time, we also need to have a sales channel facing the international market, and timely obtain information about changes in international market demand, so that the company can develop new varieties as soon as possible.
The new entrants are not familiar with the global and domestic markets, and it is difficult to quickly establish a sound sales network. If the enterprise does not have a good marketing network and does not establish a product brand in the market, it will be difficult to enter the fine chemical industry for development. Therefore, new enterprises will face higher barriers to market entry.
(4) Price factor
The raw materials needed to produce UV curing products are mainly acrylic acid, trimethylolpropane, epoxy resin, epoxy propane and other chemicals. Their prices are directly or indirectly related to the price of crude oil, and are also affected by changes in market supply and demand.
In recent years, the price of crude oil and chemicals in the international market fluctuates very frequently. Enterprises need to track and deal with the impact of price fluctuations on the production cost and sales market of UV curing products in a timely manner.
If the price of chemicals fluctuates too much in the short term, it will have a certain impact on the profit level of the UV curing new material industry.
Post time: Jan-03-2023