With the increase in production costs, the pressure faced by coating companies is also increasing day by day. Life is tough. Faced with constant pressure from environmental protection policies, many small and medium-sized paint companies are about to close down. Will the paint industry be spared in 2017?
We are not immune to rising paint prices
The upstream real estate industry has always been an important factor affecting the development of the downstream architectural coatings industry. It is reported that the national building materials and home furnishing prosperity index (BHI) in January 2017 was 71.35, a month-on-month decrease 24.82 points, a year-on-year decrease of 7.17 points. Sales in the building materials market in second- and third-tier cities across the country have also continued to decline, and the building materials market in January and February is not optimistic.
When the prices of upstream materials are rising, paint prices are not immune to the rise. From the end of last year to the beginning of the year, news of price increases by major paint manufacturers spread throughout the industry. Due to the increase in upstream supply chain costs, various brand channels and dealers will adjust their product prices in 2017. The reporter visited a number of well-known paint brands and learned that almost 60% of paint companies have made product price adjustments. At the beginning of the new year, we encountered rising prices of various raw materials, rising labor costs, rising rental space, rising transportation costs, etc. Various data indicate that price increases in the coatings industry are a foregone conclusion. Rising prices have reduced the price competitiveness of small and medium-sized coating companies, increased the difficulty of competition, and made it difficult for small and medium-sized coating companies to develop.
Since the short-term upward trend is clear, how should companies and industries respond?
Should you escape the paint industry or find another way out?
Paint companies need to take appropriate measures.
First, cope with rising costs.
There is no way to optimize raw materials unless you cut corners, which of course is not advisable. Therefore, it can only be optimized from aspects such as personnel and transportation. At present, the paint industry has formed an obvious regional cluster development pattern, and the corresponding industrial chains such as personnel, production, logistics, and marketing must also be gathered to optimize industrial configuration, reduce costs, and improve industrial efficiency.
Second, optimize the adjustment of industrial structure and accelerate the transformation and upgrading of the coatings industry.
The heavy punch governance of high -polluting enterprises is a direct cause, which shows the determination of the state to eliminate low -end enterprises and products. Therefore, accelerating industrial upgrading can help raw materials and raw materials and A win-win situation for the paint industry. Furthermore, although paint raw materials are imported, most of them still rely on the domestic demand market, especially the whole industry chain raw material industrial park, which has become an important driving force supporting the development of the surrounding and national paint industries. Therefore, the paint raw materials industry is also in urgent need of transformation and breakthroughs.
Although the impact of capital has had a great impact on the coatings industry and is a great challenge for coatings companies, but looking at the transformation and upgrading of the coatings industry, it is easiest to The result is that “small businesses leave and large businesses upgrade.”
Small and medium-sized coating companies do not need to be too panicked. They must maintain a stable state and the correct ideas to realize the transformation and upgrading of the company. Don’t lose at the starting line!
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