With the gradual increase of rent and labor cost in Shenzhen, especially after the soaring increase of last year, many LED Lights manufacturers are now under the pressure of high rent. With cost increasing, it’s understandable for led high bay enterprises to move to cities with abundant human resource and lower cost, and only leave a R&D department in Shenzhen.
Finally, government policy for related industry is also one factor that needs to be considered for LED Lighting industry. There had been financial support from the government at the beginning when LED lights industry was entering Shenzhen. If the related policies fail to follow the trend of development, then enterprises would certainly move away.
Except for the reasons of factory rent, labor cost and government policy, the moving out of LED lamp s enterprises was mainly due to economic transformation and upgrading industry in Shenzhen, which has eliminated enterprises with lower profit rate.