Hey, let me tell you, have you ever wondered where those big luminous advertising screens on the street were made? Two days ago, my friend Lao Wang asked me: "Why do you think all these LED display factories are clustered in Shenzhen?" "This question stopped me, so let’s talk about it today.

Site selection is not just about picking a random piece of land.

Let me tell you a little trivia first: out of every 10 LED screens in the world, at least 6 come from the Pearl River Delta. Why do you think these factories have to be packed here? ​ ​Complete supply chain facilities​ ​Definitely the number one reason! For example, from chips, lamp beads to driver ICs, you can find more than 200 suppliers in two hours of driving. This is very efficient.

Let me give you a clear list of the most critical site selection factors:

• ​​half hour traffic circle​ ​It must cover at least 3 highway intersections, and the logistics vehicle can run more than 5 times a day
• ​​Industrial park power capacity​ ​It cannot be lower than 5000kVA. After all, the 24-hour production line cannot be stopped.
• ​​Technical talent pool​ ​There are 3 technical schools within 3 kilometers of the surrounding area, transporting 200+ professional technicians every year

I once visited a high-tech industrial park, what a guy! The roof of his workshop is completely covered with photovoltaic panels.​ ​Monthly production capacity soars directly to 10,000㎡​ ​, which is equivalent to half a year’s production of an ordinary factory. What's even more amazing is their quality inspection line. The aging test alone has to run for 72 hours continuously. With such strictness, it's no wonder that they can obtain ISO9001 certification.

The gateway to technology-intensive industries

Someone may want to ask: "Isn't it all about smart manufacturing now? Is the location of the factory still important?" "This is to the point! Look at those high-end production lines,​ ​Low brightness and high gray technology​ ​The realization depends on the constant temperature and humidity workshop, and the temperature control accuracy must be controlled at ±0.5℃. Like our common indoor screens, the brightness can be adjusted to 800cd/m² while still maintaining 16bit grayscale. This technology cannot be achieved by just finding a factory.

There was an interesting case last year. After a manufacturer built a factory in North China, it was discovered that the color difference of its products exceeded the standard.​ ​The air is not clean enough​ ​. During the rectification, 50 FFU fans were installed, and the number of particles per cubic meter dropped from 300,000 to less than 100,000. Only then did the color accuracy ΔE value be reduced to less than 1.5. So, the factory environment parameters are really no joke!

The hidden logic of global layout

You may not know that factories with a high proportion of exports have special considerations when selecting locations. Take the screens exported to Japan and South Korea as an example.​ ​Shipping time​ ​Must be accurate and shipped within 72 hours. I asked about the logistics data of a major factory. They have specially built their warehouses within 5 kilometers of the deep-water port. Container trucks can reach the terminal in 20 minutes, so that 87% of orders can catch up with the weekly liner.

Speaking of which, I have to mention​ ​Special certification​ ​threshold. For example, screens sold in Europe require CE certification, and North America requires UL certification. These cannot be purchased with money. In order to pass the IP65 waterproof test, one factory conducted more than 300 rain tests and finally developed an outdoor screen that can withstand even a typhoon.

Future trends quietly change site selection

Now the newly built smart factories are beginning to​ ​Industrial Collaboration Zone​ ​Getting closer, you know, means being neighbors with AI algorithm companies and content production teams. I heard that an industrial park has built a "display ecosystem". From project design to content production, it takes only 10 minutes to walk, and the project delivery cycle has been shortened by 40 days.

There is another new thing. After setting up a factory in Vietnam, a manufacturer discovered that​ ​Although labor costs have dropped by 30%​ ​, but the supporting industries cannot keep up, and as a result, raw materials have to be shipped from China. After calculation, the comprehensive cost was actually 12% higher. This loss-making transaction was extremely unfair.

Let me tell you, the location selection of this LED factory is like playing Go. It requires not only the geographical advantage of the "gold corner but the silver edge", but also the ability to "eyeball" and create technical barriers. Next time you see a cool transparent screen in a shopping mall, you might as well guess what kind of location story it went through - maybe it came from a laboratory in an industrial park and went through many tests before it came to you!

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