Once, China’s mold industry is unlimited, orders continue to flow, substantial profits. But in recent years, many mold enterprises have lamented: “Business is getting harder and harder to do!” What exactly is the reason for this change?
1. Intense price wars, profit compression
Increased market competition, low prices have become the main means of grabbing orders. Customers are more and more sensitive to the price, resulting in profit margins have been squeezed again and again, and many companies are even caught in the predicament of “the more you do, the more you lose”.
2. Soaring raw material and labor costs
Rising prices of steel, aluminum and other raw materials, coupled with the rising cost of labor and factory rent, have increased the pressure on the operation of enterprises.
3. Fragmentation of orders and tougher delivery schedules
Previously, more large-volume orders, but now customer demand is more personalized, small batch, multi-batch orders increased, mold companies have to frequently adjust the production line, increasing the management and production costs.
4. High pressure of technological upgrading
Intelligent manufacturing, precision processing has become a trend, the traditional mold factory if not to upgrade technology, optimize the process, it is easy to be eliminated by the market. But technological upgrading means huge investment, for small and medium-sized enterprises is undoubtedly a heavy burden.
In the face of these challenges, mold companies want to break the game, we must focus on technological innovation, refined management , and actively explore overseas markets, looking for new growth points. Crisis, often also contains opportunities!
Post time: Apr-03-2025