With the continuous innovation and maturity of LED display technology, we are gradually entering the digital display era. The display industry has a very broad prospect and unlimited market opportunities. At the same time, competition in the domestic LED display screen industry is also intensifying. Many companies are starting to look for new development directions to secure a place in future market competition. Under this industry development background, contractors are also in a rather awkward position. Especially recently, impacted by wholesale channels, the survival space of contractors has been further squeezed. Profit margins are getting smaller and smaller, and collections are becoming increasingly difficult. This is a very serious reality facing every contractor.

Difficult Situation for Manufacturers   Contractors Face Hardships

　　Recently, according to a report released by a research institution, the average wage in China's manufacturing industry has surpassed that of Latin American countries except Chile, and has reached about 70% of the level of some Eurozone member states. This is positive feedback on China's economic development, and it is also a direct manifestation of the sharp increase in labor costs in the manufacturing industry. With the intensification of industry competition in 2017, under the influence of the "price war" and the obvious trend of industry reshuffle, corporate profits have been further reduced. Labor costs, raw materials, and corporate operating costs have all risen sharply. Therefore, cost issues have become a problem that plagues many small and medium-sized LED display screen enterprises.

　　Currently, there are various sales methods for LED display screens. These include retail, distributors, and LED display screen contractors. It can be seen that contractors are also a large group that cannot be ignored. As an important media carrier integrating the functions of advertising, commercial display, and entertainment interaction, the promotional function of LED display screens is also gradually improving and perfecting. Currently, in the fiercely competitive market environment, although the visual effects of LED display screens are getting better and better, the phenomenon of increasingly poor quality is frequently exposed. Some manufacturers and contractors, in pursuit of greater profits, constantly modify and replace electronic raw materials and accessories, resulting in a significant reduction in service life and an increase in failure rates. This leads to users becoming increasingly uneasy about the selection and use of LED display screens, lacking trust in the products. Therefore, it is more difficult for manufacturers and contractors to do business.

Intensified Industry Competition   Thin Profit Margins

　　There is always a cause for every effect. The situation described above is not without reason. In terms of the current development status, the cost price of the LED display screen manufacturing industry has basically become transparent. At the same time, the client also has the right to compare product quality, service quality, and price in the market, which to a certain extent poses a threat of price pressure to contractors. Contractors also face survival pressure during production and have to reduce their deserved profits. If contractors want to stabilize the project at this time, they can only further reduce costs, basically giving up profits or even losing money.

　　In fact, contractors and manufacturers have a mutually dependent relationship in market activities. However, nowadays, more and more manufacturers are directly participating in projects, especially the entry of large companies, which, with their strong connections and market operation methods, makes the situation of contractors increasingly difficult. In some large projects, the owner will conduct a lot of market research on the equipment and performance used. This limits the brands that contractors can choose from, and their voice is diminishing. In order to win projects, manufacturers usually provide unified quotations to contractors participating in the projects. From this, it is not difficult to see that contractors and manufacturers are actually a loose community of interests.

The Delicate Relationship Between Contractors and Manufacturers   Peaceful Coexistence and Joint Development

　　In addition, with the rapid development of the digital age, contractors are facing a strange phenomenon: the software platforms and equipment suppliers they choose more or less restrict their own development. In other words, in order to prioritize the sales of their own equipment, platform suppliers often impose restrictions on the software, or only allow new functions to be expanded on their own product lines. As a result, if the owner puts forward new functional requirements, contractors can usually only select from the new functions and new equipment developed by the original platform supplier. This ultimately leads to only one or two manufacturers' equipment in the entire system. This relationship can be maintained in the short term, but from a long-term perspective, if the manufacturer's technological capabilities are not updated in time or the service is not in place, conflicts will arise among the owners, contractors, and manufacturers due to inconsistencies in interests.

　　Therefore, both contractors and manufacturers are constantly seeking new cooperation methods. In order to obtain more benefits and autonomy, contractors with some strength are usually prepared or have already started producing and researching and developing their own products. In addition, contractors also need to cooperate with manufacturers in an orderly manner, especially in terms of product quality, because contractors are responsible for construction and need to connect each qualified product and deliver it to the client. The quality of the product itself must be excellent to avoid problems such as wiring, connection, and debugging during the process or after-sales service. Current engineering acceptance standards are more stringent. If there is any negligence or unqualified aspect, the client will point out the problems. On the one hand, this affects the progress of engineering acceptance, and on the other hand, it also affects the capital recovery of engineering funds. This results in significant direct economic losses for contractors.

　　In summary, as an important link in the entire industrial chain, contractors are not limited to a single technology and product such as LED displays. They should also broaden their horizons, innovate their thinking, and view themselves as display solution providers. Actively absorb various advantageous and competitive display technologies, such as LCD, DLP, projection, OLED, etc., to meet the various display needs of customers. For contractors everywhere, in addition to the product itself, the impact of after-sales service on any product is becoming increasingly significant. An industry with good service will inevitably bring continuous vitality to the enterprise and is also conducive to handling customer problems. Therefore, improving the level of after-sales service is also a factor that contractors cannot ignore.