The Reason Why Labor Costs Account For A High Proportion In The Manufacturing Of Cable Terminals

The assembly of cable lugs involves multiple stages, such as wire cutting, stripping, crimping, and terminal fixing. These operations require skilled workers to perform them manually according to the wire lugs specifications, and each step demands a high level of proficiency and experience. Compared to automated equipment, the workflow of electrical lugs is difficult to fully mechanize in the short term because terminal lugs has small dimensions and high contact precision requirements, increasing reliance on manual operation.

When production volume is small, the investment payback period for automation is long, and many manufacturers still use manual or semi-automated methods for terminal assembly. This production model has a significant impact on the overall cost structure of copper lugs in regions with high labor costs, especially the wages of skilled workers.