“The machines keep running, but no money shows up in the accounts.” This is the most genuine self-mockery of countless connector manufacturers’ bosses nowadays.
At the beginning of 2026, the price of copper once again approached the high of 100,000 yuan per ton, and the volatility of silver prices was so intense that it could break through the profit bottom line of any precision connector factory. Meanwhile, the “annual hard price reduction” in the downstream market never failed to arrive on time, and last-minute order changes and extended payment terms had become the norm.
The connector industry is trapped in a distorted vicious circle: the pressure of rising raw material prices is borne solely by the upstream, and R&D investment is ignored by the demand for low prices. The two sides of supply and demand have changed from “partners” to opponents in a “zero-sum game”. Where is the way out for connector enterprises struggling to survive in a tight spot?
01
Buried under “Three Great Mountains”
Who Will Pay for the Innovation of Connector Enterprises?
In the highly customized connector industry, suppliers are burdened with three insurmountable “mountains”:
(1)
The pain of costs: Don’t let suppliers “swim naked”
Raw materials such as copper and silver account for 40% to 60% of the production cost of connectors. In 2025, the fluctuation range of the main contract of Shanghai copper was as high as 18%, and in 2026, it approached the high point of 100,000 yuan per ton. The fluctuation of raw materials to a large extent determines the profit and loss of manufacturers.
“Raw material prices have risen, but customers are still pushing for lower prices. Profits are being eroded, and some orders are even being accepted at a loss,” disclosed a manager of a connector manufacturer. Most purchasers offer fixed quotations, leaving the risk of rising raw material prices entirely on the suppliers. Small and medium-sized manufacturers have been struggling on the verge of profit and loss for years.
(2)
Planning Chaos: Disappearing Delivery Dates and Piling Up Inventories
Orders in downstream industries such as energy storage and power supplies are inherently volatile. If purchasers frequently change orders, shorten delivery times, and constantly urge for earlier deliveries, it will completely disrupt the production plans of suppliers, leading to inventory overstock and waste of production capacity. Coupled with the continuous extension of payment terms, manufacturers are highly likely to fall into a double crisis of production disorder and tight cash flow.
A connector business entrepreneur quipped, “Customers’ last-minute order changes have led to extremely high sunk costs, seriously dragging down the capacity utilization rate.” Unordered demands have completely thrown the production rhythm out of control.
(3)
The Lightness of Value: A Technical Partner, Not a “Photocopier”
The connector industry is highly customized, with significant upfront capital investment required for mold development and technology research. However, many purchasers still adhere to a one-way cooperation model of “I state the requirements, you deliver the goods.” Frequent changes in requirements result in the supplier’s R&D investment going to waste, directly dampening the industry’s innovation enthusiasm.
Looking at a high-quality cooperation case: When a certain energy storage connector enterprise is in contact with customers, it will, in light of the actual application scenarios of the downstream, put forward professional suggestions for optimizing the performance of connector components and controlling costs in a targeted manner. All the proposals have been highly recognized by the customers.
02
Searching for the “Lighthouse”
What Kind of Purchasers Do Connector Enterprises Need?
In the past, it was the buyers who chose the suppliers. However, in the current era of high-quality development, connector enterprises also need to learn to “select” their customers. They should seek out those “beacon-type purchasers” who truly respect industry rules and adhere to the spirit of contract.
In the eyes of connector enterprises, high-quality purchasers should meet three core hard indicators:
Cost sharing, no “going it alone”: Quality purchasers share risks based on the proportion of raw materials. When copper prices rise, they adjust prices simultaneously to ensure suppliers’ basic profits; when prices fall, they offer reasonable concessions to maintain the long-term stability of the supply chain.
Stable planning and respect for production: Do not change orders at will or maliciously compress objective delivery dates. Use stable demand forecasts to achieve efficient and punctual delivery, so that suppliers’ production scheduling is no longer like “putting out fires”.
Technical collaboration, “mutual pursuit”: High-quality purchasers will fully recognize the R&D capabilities of suppliers, jointly carry out technological co-creation, jointly verify the plan in the early stage and share the R&D costs, and actively adopt the professional suggestions of suppliers to optimize product design. This not only enhances the overall performance of the connectors but also reduces the production costs of the entire chain. At the same time, high-quality purchasers will also precisely match their product positioning and clearly define quality and demand standards.
03
Lighthouse Award
Returning the “Right to Evaluate” to the Doers
Rather than exhausting oneself in the vicious competition, it is better to break through in collaboration. The “Lighthouse Award” for outstanding power supply industry purchasers has emerged in response to the times.
This is not merely an award ceremony; it is an opportunity for connector enterprises to say “no” to unreasonable rules. It is the industry’s first authoritative selection focusing on the reputation of supply chain cooperation.
Not just about scale, but all about reputation: It is the “Dianping” in the hearts of suppliers, allowing those reliable, honest, and visionary purchasers to stand out.
Precise identification and resource activation: Help manufacturers quickly screen out high-quality customers, and direct limited R&D and production capacity to long-term partners to avoid unnecessary cost losses.
Rebuilding the ecosystem and ending low prices: Guiding the industry to shift from vicious price wars to benign collaboration, making “respecting suppliers” the core competitiveness of the client.
Conclusion
Breaking the vicious circle of internal competition and reshaping a win-win ecosystem requires the participation of every connector industry practitioner.