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Company news Location:Index  >  News  >  Company news

Reasons for Rising Price of Injection Molding Service

Release date:2018-12-10 Click number:2316

For the injection processing industry, each round of development will encounter many new problems. This year's problem is partly due to rising prices. The reasons for the rising cost of injection moulding are briefly described below.

1. Increased labor costs

For the Pearl River Delta, artificial head-up is the cause of headache. Especially Shenzhen raises the minimum basic wage almost every year. Although the wages of injection technicians are higher than the basic wages, the wages of employees must rise after each increase. In addition, the difficulty of recruitment also forces the adjustment of salary structure, and the rising labor cost has become the basic phenomenon of injection molding industry in recent years.

2. Rising raw material prices

Oil price fluctuation and raw material price fluctuation caused by plastic production problems also lead to the increase of injection cost. In the second half of 2016, due to the rising prices of basic materials, the prices of all kinds of materials have risen to varying degrees, and some of the increases have rebounded. Over 20% of the total cost is still much higher than before, although it falls back after the year.

3. Increased prices of accessories

There are many auxiliary materials used in injection moulding, including paper, protective film, lubricant and various mechanical parts. The prices of these materials have risen to varying degrees, such as more than 60% of paper, and the value of protective film has increased. Because the demand for labor is relatively large and there is a large increase, other parts with high prices are also a frequent problem.

4. rising capital costs

The increase of loan term and capital input is the reason for the increase of capital cost. Sometimes competition among peers will lead to insufficient prices, unreasonable billing methods for customers, increased operating costs of funds and other reasons for cost increases.

Of course, the loss and internal consumption in production arrangements are also quite expensive, but this is the level of operation of injection processing plants. This can not be attributed to the rise in processing prices, but to the performance of inadequate factory production level.