The involution in the photovoltaic industry was once astonishingly similar to the current situation in the screw industry. Previously, after a period of incremental expansion, the photovoltaic industry entered a stage of stock competition, with redundant capacity exceeding 1.8 times. The entire industry chain fell into a price bloodbath, silicon material prices fell below the cost line, leading to massive losses for leading companies, while small and medium-sized enterprises struggled to survive amid homogeneous competition. This highly aligns with the current situation in the screw industry of "low-end congestion, high-end shortage." China’s annual fastener output accounts for more than 40% of the global total, but over 90% of it comes from small and medium-sized enterprises. Low-end screws below grade 8.8 account for more than 80%, and companies scramble to lower prices to win orders. The ex-factory price of ordinary M10 bolts has dropped sharply, and some companies even sell below cost, falling into a cycle of internal competition of "increased production without increased revenue."
The rectification of the photovoltaic industry first gives the screw factories the first lesson: reject low-level price wars, and adhering to quality standards is the foundation of survival. The over-competition in the photovoltaic industry stems from enterprises blindly expanding production and neglecting quality and innovation, ultimately leading to losses across the entire industry. The screw industry is no different; many screw factories, in order to seize the market, recklessly cut costs and lower quality, producing non-standard products with inferior materials. Although it seems to secure orders in the short term, it actually undermines the industry's reputation. The photovoltaic rectification explicitly requires investigating and punishing unfair competition such as selling below cost, which serves as a warning to screw factories: the bottom line of price competition is meeting quality standards, and price wars without quality will ultimately be eliminated by the market. Only by adhering to quality standards and ensuring product control can a company stand firm during industry reshuffling.
The second lesson: break free from homogeneous internal competition, and technological innovation is the key to breaking the deadlock. The core of photovoltaic industry rectification is to promote the industry’s transformation from 'scale-first' to 'quality-first.' Leading companies break through difficulties through technological iteration, the penetration of N-type batteries rises rapidly, and perovskite technology achieves mass production, building competitive barriers through innovation. In contrast, many companies in the screw industry are stuck in the homogeneous dilemma of 'if you make M10, so do I,' with insufficient R&D investment and lack of core technologies. Fastener companies in Haiyan, Zhejiang, provide a solution: they break through the core technology of high-speed rail fasteners, break foreign monopolies, produce products that meet international standards, and offer more competitive prices, achieving an annual output value exceeding 10 billion yuan. This tells screw factories that only by increasing R&D investment, deeply cultivating niche fields, and developing high-end precision fasteners can they escape price competition and realize value upgrading.
Lesson 3: Abandon short-sighted thinking; only long-term thinking and differentiated strategies can ensure steady and sustainable growth. The internal competition in the photovoltaic (PV) industry fundamentally stems from companies pursuing short-term gains and blindly expanding production. After regulatory adjustments, industry concentration increased, and high-quality companies stood out thanks to their long-term planning. In the screw industry, most small and medium-sized enterprises lack long-term plans and blindly follow market trends, causing overcapacity and cutthroat competition. Data shows that the three-year elimination rate of fastener companies in China reaches 40%, mostly due to short-sighted management and lack of differentiated positioning. Experiences from the PV industry indicate that screw manufacturers need to leverage their own strengths: either deeply cultivate niche markets, such as high-end fasteners for new energy vehicles and aerospace, or improve production efficiency and reduce costs through automation upgrades, eliminating the short-sighted mindset of 'making quick money.'
The regulatory adjustments in the PV industry are not about eliminating competition but about guiding the industry into healthy competition. For screw manufacturers, this adjustment serves as both a warning and an opportunity. Currently, the screw industry faces simultaneous overcapacity in the low-end segment and undercapacity in the high-end segment, while demand for precision fasteners in new energy vehicles and high-end equipment is surging. This presents a perfect opportunity for screw manufacturers to transform.
Abandon price competition and uphold quality standards; break free from homogenization and focus on technological innovation; discard short-sighted thinking and stick to long-term strategies—these are the most valuable lessons from the PV industry's regulatory adjustments for screw manufacturers. Only by eliminating internal conflicts and finding the right positioning can screw manufacturers escape the quagmire of internal competition and achieve further, steadier progress on the road to high-quality development.