In early August 2024, Siemens released its Q3 2024 performance report. The report shows that the number of new orders has decreased by 15% year-on-year, especially in the automation field, where new orders have also decreased due to high customer inventory and complex market environments. In the face of this situation, what is even more unexpected is that after the release of this performance report, Siemens seems to have adopted a strategy of not releasing goods and creating market scarcity, attempting to drive up product prices. In just two days, some models of Siemens industrial control products such as PLCs have seen a price increase of over 13%.

This artificially created scarcity greatly increases market uncertainty. For the agent group, after realizing Siemens’ official intention, they judged that the market may usher in a wave of price increases, so they began to cautiously restock, and even did not rush to release inventory. This market behavior exacerbated the imbalance between supply and demand, and further promoted price increases. But this is still limited to speculation. The current dilemma is that agents are also under pressure when faced with one price in the morning and one price in the afternoon, and they cannot help but be more cautious when quoting to customers.

For many automation terminal enterprises that rely on Siemens products, it is even more passive, because unpredictable market intervention invisibly increases unplanned procurement costs and the delivery time of automation enterprise equipment and projects, making many related enterprises very passive and having to face the risks of rising costs and project delivery delays.

At the beginning of 2021, the profound impact of the overall shortage of industrial control products by foreign brands is still vivid in our memory. Today, we still need to be cautious in dealing with the possibility of foreign brands launching market intervention policies, which may bring market uncertainty and torture, which is truly distressing. In this context, the importance of domestic substitution and independent innovation is once again highlighted!

For many years, China’s industrial automation industry has relied on international brands such as Siemens, Mitsubishi, and ABB. However, with changes in the market environment and adjustments in international brand strategies, more and more domestic enterprises are beginning to understand and use domestic independent brands. After all, the high cost-effectiveness and localized high-quality services of domestic brands are still evident to all.

Domestic brands rooted in the automation industry have gradually realized that only through independent technological innovation, building a stable supply chain system, and improving service mechanisms can they have a say in the fierce and highly uncertain market competition, and provide stable, reliable, and sustainable products and services for domestic end brands downstream of the industry.

In the field of domestic industrial control, we are continuously committed to technological innovation, promoting industrial civilization, responding quickly to market demand, and providing more intelligent, accurate, and cutting-edge comprehensive products and solutions. We have now grown into a leading enterprise in domestic PLC.

On another path of focusing on domestic substitution of Siemens PLC, a group of excellent enterprises have also emerged. With nearly 20 years of technological accumulation and market experience, the UN series PLC products launched by them can perfectly replace Siemens imported PLC and become a new choice for many customers who previously used Siemens PLC.

On the one hand, domestic PLCs provide stable and reliable performance at a more affordable price, with outstanding cost-effectiveness, saving users a lot of costs. The long-term stable price also ensures the rights and interests of agents and users.

In addition to high cost-effectiveness and price stability, domestic brands that have been immersed in the industrial control industry for many years have established their own production bases and built stable and controllable supply chains to ensure product delivery quality and lead time.

At the same time, the fast response service team is also a significant advantage of domestic PLC compared to imported brands. The service team of domestic PLC has a wide coverage, fast response, and a deeper understanding of the local market, which can better meet the needs of users and provide more customized solutions.

Currently, facing the situation of rising prices and shortages of Siemens PLCs, choosing domestic alternatives is not only an effective means of cost control, but also an opportunity to promote independent innovation in China’s industry. Such domestic brands not only enable enterprises to gradually break away from their dependence on international brands, but also enhance the integrity and competitiveness of the local industrial chain, accelerate technological innovation and product upgrading, thereby achieving sustainable development of the industry and making the long-standing monopoly of foreign brands a thing of the past!