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    Home > Chemicals Industry > China Chemical > The raw materials are "rising", how can instrument manufacturers relieve their worries?

    The raw materials are "rising", how can instrument manufacturers relieve their worries?

    • Last Update: 2021-09-26
    • Source: Internet
    • Author: User
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    【Hot Focus on Chemical Machinery Equipment Network ] At present, a fierce price increase wave of raw materials is sweeping the upper, middle and lower reaches of the manufacturing industry.
    Many companies have clearly felt the pressure of soaring raw material prices and increased costs, and manufacturers have sent messages from time to time to remind buyers and distributors to pay attention to price increases at any time.

     
    Hot attention of Chemical Machinery Equipment NetworkChemical machinery and equipment
    Raw materials are rising, and mid- and downstream companies caught in the middle by upstream and consumers are undoubtedly the most helpless party under the wave of price increases.
    Many companies said that when they cannot absorb the cost pressure themselves, they need to consider adjusting product prices to maintain a certain profit margin.

     

    Adjust product prices to maintain corporate profits
     
    Adjust product prices to maintain corporate profits

    Some companies said that rising raw material prices have brought a lot of cost pressure to companies.
    Through advance layout, actively reach cooperation with customers, lock * orders as much as possible, lock material prices with suppliers, and reduce costs through materials preparation and strategic cooperation.
    Pressure does not rule out the possibility of adjusting product prices later.

     

    Manufacturing is an important cornerstone for the development of the national economy and the protection of the national economy and people’s livelihood.
    The instrumentation industry is no exception.
    The raw materials for instrument manufacturing include permanent magnet materials, resistance materials, temperature measurement materials, electric shock materials, electric vacuum materials, white copper wires, bare copper wires, enameled wires, silk-covered wires, welding wires, compensation wires, various control cables and special cables, Optical glass, quartz glass, and various power tools and electrical components.

     
    Instrumentation
      At present, most of my country's instrument and meter production is to purchase semi-finished products and electronic components and reprocess them on their own, especially for small and medium-sized instrument and meter manufacturers.
    There are not many companies that can independently produce core components.
    However, the price of raw materials will also affect the purchase price of semi-finished products and the price of instrumentation products.

     

      A few days ago, Delixi Electric issued a notice of product price increase.
    Due to the development needs of the company and in order to better meet the market demand, to provide more professional and refined products and services, after the research and decision of Delixi Electric Co.
    , Ltd.
    , starting from March 19, 2021 Product price adjustments, and the face prices of all price-adjusted products will take effect on March 19, 2021.

       From the product price increase notices issued by various companies, we can understand that the reason for the product price increase is nothing more than the increase in raw material costs and supply chain costs, or the replacement of old products or the addition of new features.
    Therefore, many companies worry that the continuous increase in raw material prices will further eat up profits; at the same time, they are worried that if they increase product prices, they will weaken the competitiveness of their products in overseas markets.

     
      The reason is that upstream companies control the price of raw materials and easily transmit the pressure of price increases to the middle and lower reaches, while the middle and lower reaches of consumers who face consumers dare not easily raise prices because they are afraid of losing customers because of price increases.
    The helplessness of the midstream and downstream precisely reflects the current disadvantages of some manufacturing companies.

     
      On the one hand, the industrial structure is unreasonable.
    From the perspective of production, many small and medium-sized enterprises have obvious structural and regional overproduction.
    The products are of high consumption, high cost, high dependence on foreign technology, and weak independent development capabilities.
    If they lose their price advantages, they will be difficult to adapt to the intense Market competition.

     
      On the other hand, the added value of the product is not high.
    For a long time, some Chinese enterprises have adopted OEM production methods and are at the middle and low end of the *value chain.
    This has historical and objective environmental factors.
    However, with the continuous increase in the total manufacturing volume, the originality, subversive, and transformative technologies still have little results, and there is a lack of * brand.

     
      It is precisely because of these disadvantages that some midstream and downstream companies appear to be quite embarrassed under the tide of rising prices of raw materials, and even their vitality is greatly injured.

     
      How do companies deal with the pressure of rising raw material prices?
     
      With the * epidemic under control and the spread of vaccines, countries will gradually resume work and production.
    Although the supply of production capacity will increase, the demand for raw materials will also increase.

     
      In the near future* commodity prices have risen sharply, and the contradiction between supply and demand is expected to increase.
    Raw material prices may remain high in the near future.
    So how do companies respond to pressure from the supply chain and rising raw material prices?
     
      First of all, try to ensure that the price of raw materials is not synchronized with the price of products, and try to give the market part of the profit.
    Secondly, the design of new products will pay more attention to cost performance and reduce the cost of raw materials.
    Finally, in other links, we will also find ways to reduce costs, such as adding automation equipment and reducing labor costs through machine substitution.

     
      In addition to the enterprise's own efforts, it is also hoped that relevant parties can introduce price supervision and price balancing mechanisms for bulk raw materials to resolutely combat arbitrary price increases.
    At the same time, it is necessary to strengthen our country's ability to purchase and supply commodities in *, to ensure the safety and stability of the domestic supply chain.

     
      Original title: Raw materials are "rising", how can instrument manufacturers relieve their worries?

       From the product price increase notices issued by various companies, we can understand that the reason for the product price increase is nothing more than the increase in raw material costs and supply chain costs, or the replacement of old products or the addition of new features.
    Therefore, many companies worry that the continuous increase in raw material prices will further eat up profits; at the same time, they are worried that if they increase product prices, they will weaken the competitiveness of their products in overseas markets.

     

      The reason is that upstream companies control the price of raw materials and easily transmit the pressure of price increases to the middle and lower reaches, while the middle and lower reaches of consumers who face consumers dare not easily raise prices because they are afraid of losing customers because of price increases.
    The helplessness of the midstream and downstream precisely reflects the current disadvantages of some manufacturing companies.

     

      On the one hand, the industrial structure is unreasonable.
    From the perspective of production, many small and medium-sized enterprises have obvious structural and regional overproduction.
    The products are of high consumption, high cost, high dependence on foreign technology, and weak independent development capabilities.
    If they lose their price advantages, they will be difficult to adapt to the intense Market competition.

     

      On the other hand, the added value of the product is not high.
    For a long time, some Chinese enterprises have adopted OEM production methods and are at the middle and low end of the *value chain.
    This has historical and objective environmental factors.
    However, with the continuous increase in the total manufacturing volume, the originality, subversive, and transformative technologies still have little results, and there is a lack of * brand.

     

      It is precisely because of these disadvantages that some midstream and downstream companies appear to be quite embarrassed under the tide of rising prices of raw materials, and even their vitality is greatly injured.

     

      How do companies deal with the pressure of rising raw material prices?
     
      How do companies deal with the pressure of rising raw material prices?

      With the * epidemic under control and the spread of vaccines, countries will gradually resume work and production.
    Although the supply of production capacity will increase, the demand for raw materials will also increase.

     

      In the near future* commodity prices have risen sharply, and the contradiction between supply and demand is expected to increase.
    Raw material prices may remain high in the near future.
    So how do companies respond to pressure from the supply chain and rising raw material prices?
     

      First of all, try to ensure that the price of raw materials is not synchronized with the price of products, and try to give the market part of the profit.
    Secondly, the design of new products will pay more attention to cost performance and reduce the cost of raw materials.
    Finally, in other links, we will also find ways to reduce costs, such as adding automation equipment and reducing labor costs through machine substitution.

     

      In addition to the enterprise's own efforts, it is also hoped that relevant parties can introduce price supervision and price balancing mechanisms for bulk raw materials to resolutely combat arbitrary price increases.
    At the same time, it is necessary to strengthen our country's ability to purchase and supply commodities in *, to ensure the safety and stability of the domestic supply chain.

     

      Original title: Raw materials are "rising", how can instrument manufacturers relieve their worries?
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