"Increase in raw material prices has caused many companies to agonize and the companies responding properly have not been affected much." The days of China's plastics machinery industry in 2005 were not that good. Affected by such factors as the country’s macro-control, oil price hikes, and plastic product market slump, the plastic machinery market began to weaken. Dai Zhongyu, executive vice president of the China Plastics Machinery Industry Association, said: "After experiencing the rapid development of China's plastics industry in recent years, the plastics machine market will begin to decline, and the entire press industry will usher in a new round of reshuffle."
According to statistics, from January to October 2005, the plastics machinery industry realized a sales income of 14.6 billion yuan, an increase of 22.562% over the same period of last year, while the profit margin of sales revenue decreased by 1.37% year-on-year; the export delivery value was 2.374 billion yuan, a year-on-year increase of 20.5%. "It is said that this year's oil prices will also be operating at a high level. To deal with raw material price increases, energy-saving, consumption-reducing, and high-value-added equipment will become the user's first choice." Dai Zhongkai reminds presses manufacturing companies to carry out technology on existing products earlier. Transformation, technology upgrades, to withstand the cold weather of the plastic machine market for many years.
Chen Hao, Marketing Development Manager of Guangdong Jinming Plastics Equipment Co., Ltd., said that due to the increase in raw material prices, the profits of many customers have fallen sharply. This has led customers to pay more attention to the conservation of raw materials and energy consumption, but also paid more attention to the production speed. This is why some companies are willing to purchase expensive products. Reasons for importing equipment. As Guangdong Jinming, a company that relies on science and technology to revitalize enterprises, it will continue to increase investment in the technological content of equipment, energy conservation, consumption reduction and automation of equipment.
Huang Buming, general manager of Guangdong Kenli Machinery Co., Ltd., analyzed the reasons for the slump in the press market: First, starting from 2004, the prices of plastic raw materials rose sharply and remained high in 2005, and there may be further upward trend. Injection molding industry, the decline in demand for plastics, increased sales difficulty, which is the biggest unfavorable factor; Second, the national macro-control and anti-dumping policies of home appliances in Europe, the United States and other countries also seriously affected the export of home appliances and telecommunications products in China, resulting in production The enterprises of home appliances and communication products have reduced the demand for injection molding machines. Third, the shortage of energy in China has become increasingly severe. It has also affected the development of the industry to a certain extent. Plastics manufacturers concentrated in the coastal areas often face the phenomenon of underemployment. "As a result, we have also been affected," Huang Buming said. "But we produce precision and high-precision injection molding machines. Our products are used in high-value-added plastic products. The impact of factors such as raw material price increases on product sales is not. In the case of an overall downturn in the press industry, it is quite good to have a steady rise."
"Compared with the previous two years, although the press market as a whole has slumped, we still have a slight increase. This is related to our failure to fight prices with our competitors, efforts to improve product quality and technology levels, and providing users with meticulous service. "Shi Yonghong, director of Shaanxi Qinchuan Plastic Machinery Plant, said in an interview with this reporter. From the product point of view, the hollow blow molding machine produced by Qinchuan Plastic Machinery Factory is lighter than similar domestic products, saving about 5% of raw materials, and its overall performance is better than its competitors. "But last year, we also felt tremendous pressure: First, the domestic market with a specification of 200 liters or less in the hollow machine market has become fiercely competitive; second, it is influenced by the increase in oil prices and the price increase of upstream refinery companies, and the production of plastic buckets The price of ethylene raw materials doubled compared with two years ago. Product manufacturers' production costs are too high and profits are low, thus affecting the hollow machine market."
The Qinde Group’s Qian Qinxian manager stated that the increase in raw material prices has affected the growth of the company’s turnover, but it has increased its sales efforts by implementing a revenue-and-lightening policy. The current business situation has begun to improve.
The industry consolidation accelerates industry insiders to disclose that, due to factors such as oil price increases last year, a large number of injection molding machine manufacturers closed down or were on the verge of bankruptcy, especially those small-scale, low-tech, poorly managed manufacturers are even more difficult to escape.
Some experts believe that the collective climbing of the press industry is not necessarily a bad thing, which will help accelerate the reintegration of the market structure. At present, the technical level of the domestic presses industry is uneven, many small businesses do not have their own R&D strength, and some private or Taiwan-funded companies do not have the strength to develop due to the large number of talents, and do not pay attention to the improvement of output quality and technology. In order to occupy the market, they blindly reduce costs and reduce sales prices. However, in order to maintain profit margins, they often neglect product quality and equipment life, thereby lowering the price/performance ratio. Users find that the product quality is not reliable during use. Companies like this not only disrupt the market, harm the interests of users, but also bring great impact to companies that focus on product quality.
"The companies are still lucky compared to those that are on the verge of bankruptcy," said Dai Zhongkai. It seems that it is still necessary to pay attention to product quality and constantly implement technical upgrading of products. Precision and high-precision injection molding machines are becoming new hot spots in the industry. However, Dai Zhongkai also reminded companies that they must not blindly invest.
The signs of recovery are now pointing to the 2006 market. Dai noted that although oil prices continue to affect equipment manufacturers at a high level, due to the expansion of state-owned, privately-owned or wholly-owned large-scale chemical companies or some new projects, the industry will still be in the first quarter of this year. Continue to show momentum. "If you can fight for peace in April and May, you may still wish to take a trip up, but it is difficult to clarify the situation in the second half of the year," he said.
Faced with such a market situation, Dai Zhongkai believes that: First, to improve internal quality and improve product quality; second is to increase awareness of going global, to open up markets overseas. His views have been recognized by many companies. Zhang Qizhi said with deep feeling: "This year, some enterprises that cannot adapt to the needs of the market will surely be eliminated. A considerable part of the remaining enterprises can only be retained. Those with relatively strong strength, rigorous enterprise management, and high product quality and service quality are very good. However, companies with relatively reasonable prices will have larger markets, but these companies will compete with their counterparts abroad. In order to gain a firm foothold in the market next year and beyond, they must upgrade their own quality and improve their product quality. The company has truly become a strong player in the international plastics equipment industry."
Chen Hao said that at present its products have been exported to Canada, Russia, Ukraine and other countries, and export equipment accounts for 35% of total sales. They strive to increase exports by 50% on the basis of 2005 in 2006.
"For profit, this situation may not be a disadvantage, but it may become an important opportunity for our development." Huang Buming said. Judging from the structure of China's press industry, most of them are medium- and low-grade products. The market share of precision and high-precision injection molding machines is very low (domestic machines account for about 2%, of which 1.5% are for profit), and precision injection molding machines are used annually. It must be imported in large quantities, and sales of imported equipment are generally several times or even more than ten times higher than that of domestic machines. Therefore, under such circumstances, to make use of cost-effectiveness, to use effective marketing channels, and to increase product awareness, will enable the company to have a broader market space.
"Since the second half of 2005, the chemical packaging drum market was extremely hot and domestic producers of 20L to 200L barrels were operating at full capacity. In 2006, the impact of the latter was definitely greater than the former. It is estimated that the domestic hollow machine market in 2006 could grow by 5% compared with 2005. %~10%." Shi Yonghong said. Qinchuan Plastic Machinery Factory exerted its advantages in 2006 while firmly occupying the domestic high-end market for hollow machines, and did not fight prices with its rivals, providing users with the best value-for-money products. In addition, we have continued to develop products with high added value and continuously improve and innovate in mechanical structure, electrical and hydraulic control.
It is reported that Qinchuan Plastic Machinery Factory developed a 200L double hollow machine, IBC container barrel hollow machine, 30L high efficiency double station hollow machine will be put on the market in the first half of this year. In short, 2006 was still a difficult year for press makers.
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Qiangtong Machinery Co., Ltd. , http://www.china-defupresses.com