Cabinets soaring production costs all the way to the factory to the battlefield to break through

- Dec 28, 2017 -

 The current rise in the price of raw timber increases unabated, which will inevitably lead to the production of cabinets to increase business costs. The increase in production costs led to a series of chain reactions, cabinet factory is facing development problems. Some cabinet companies began to shift positions in order to save costs and seek development.


Market purchases reduce the pressure on the factory inventory


A foundry confirmed that due to price competition this year, the factory has twice the price, the cumulative rate of 10% -15%. Many companies even stopped the production line ready to put into operation, "look at the market reaction."


Orders for the foundry is life gate. A foundry upstream manufacturers fail to beat the changes in the market, preferring not to deposit but also return, however, cabinet factory inventory pressure is also much challenged. This is a microcosm. For the cabinet industry, the backlog of inventories caused by overproduction in recent years is a problem that the entire industry must face.


To the raw materials origin and lower wages of workers transferred to other provinces


Foundries are the cost of competition, the most sensitive to changes, such as manpower costs, energy costs will make it feel more pressure than their peers. Some wardrobe workers in well-known brand OEM complained: "It has been for two consecutive years did not rise wages, go a lot of colleagues." In order to reduce costs, many investors will be transferred to the factory of raw materials or lower wages of foreign provinces .


Enterprises should pay attention to technological innovation

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