According to the "2025 China Laser Industry Development Report," the Chinese market revenue for laser cutting complete sets of equipment experienced its first year-on-year decline of 5.1% in 2024, and is projected to further decrease to RMB 29.6 billion in 2025. Affected by the downturn in the real estate market, equipment procurement in sectors like construction machinery and steel structures dropped by 15%-20%. Market demand contracted sharply, precisely in the low-to-medium-end sheet metal processing market, which is the most competitive "red ocean" of price wars. Companies overly reliant on this market saw their profit margins severely squeezed.
A deeper cause lies in the structural changes within the industry: the laser cutting sector suffers from severe product homogeneity and highly convergent technological paths. Meanwhile, industry leaders leverage economies of scale to continuously reduce marginal costs, capture high-end markets by independently developing key components and integrating AI to optimize processing techniques. Currently, the top ten companies in the industry collectively hold over 50% of the market share, a clear manifestation of the "Matthew Effect."
Against this backdrop, the rumors surrounding Qingyuan Laser are essentially not an isolated incident, but rather a concentrated reflection of thesurvival difficulties faced by small and medium-sized enterprises amidst the deep within the laser cutting industry.
Tuowen's Perspective: In Times of Hardship, a Return to Fundamentals is Key
As a service provider in the CNC technology field, Tuowen CNC maintains close ties with various equipment manufacturers and end-user processing companies. The Qingyuan Laser rumors prompt the following reflections for us:
First, beware of the illusion of scale and return to the essence of cash flow. During the years of rapid industry growth, many companies pursued rapid expansion and market share capture, overlooking operational quality and healthy cash flow. Only when the tide goes out do you discover who's swimming naked. For manufacturing enterprises, regardless of market environment changes, stable cash flow and a healthy customer structure are always thebottom line for survival.
Second, differentiated competition is the only path to navigating cycles. Qingyuan Laser's over-reliance on the low-to-medium-end sheet metal processing market, with a relatively low share in high-end applications, might have been manageable during an industry upturn, but it made them particularly vulnerable when the market declined. This reminds us that only by focusing on technological innovation, breaking through into high-end applications, and forming a differentiated competitive advantage can we escape the morass of low-end brutal competition.
Third, the stability of the after-sales service system is crucial. In these rumors, the most concerning aspect involves the customers who purchased Qingyuan Laser equipment. The former employee's announcement of "personally undertaking equipment maintenance and technical support for original customers" demonstrates the sense of responsibility among industry professionals, but it also starkly reveals the predicament customers face when a company encounters problems. Tuowen CNC has always believed that equipment sales are just the beginning; stable and reliable after-sales support is the true commitment to customers.
In these uncertain times, Tuowen CNC Technology Co., Ltd. will continue to adhere to the principle of "stable operations, technology-focused." We will not blindly expand or participate in low-end price wars, but will remain committed to providing customers with genuinely valuable products and services. We also call upon our industry peers: engage less in involutionary price厮杀 (fierce competition) and more in the沉淀 (accumulation) of technological innovation; reduce the浮躁 (restlessness) of chasing trends and increase the steadfast commitment to returning to fundamentals.
The harsh winter will eventually pass, and only those enterprises with truly core competitiveness can welcome the next spring.