Daily Archives: 13. September 2018

Chinese Pet Preform Growth Rate Is Low

It is widely believed that the increase in the value added of Pet Preform manufacturing in China is now indeed lower than four years ago. In 2013, this figure was about 20%, and in 2016 it was slightly below 7%. This is clearly a legacy of higher costs for manufacturers, especially in terms of wages and rents, and as more companies produce the same or similar products, capacity is gradually oversupplied. Other financial needs are also driven by increased electricity and raw material costs, as well as buyers pushing down product prices to compensate for the lack of financial markets.
This cocktail will never predict double-digit growth and endless growth in gross domestic product (GDP) numbers, but I don’t necessarily think that China’s manufacturing industry has had it for a day. As the market matures, it will continue to face more and more problems that must be overcome. Primarily, these needs will include environmental and corporate social responsibility needs that were not part of manufacturing even 10 years ago. This responsibility increases the cost of suppliers and buyers, making buyers have to consider other destinations when pricing their jobs. However, the world is increasingly becoming a place where environmental and social responsibility is not just a patent for large wealthy companies and industrialized countries, but something that affects us all, no matter where we live.
Consumers demand that we manufacture their products in a humane and responsible manner, simply because the manufacturing is done in underdeveloped or affluent countries a few miles away, and does not mean they will accept poor quality craftsmanship and abused employees. . This requires money, so this means that India and Vietnam, as well as other countries, will face the same costs and responsibilities as China in the near future. What they don’t have is the support and long-established skills of the Chinese government, which will benefit those customers who want to know that their products can be produced at a responsible price.
China is now also aware that increasing investment in local talent and innovation, as well as first-rate research and development, is the way forward. Only when the government provides more package assistance, including tax incentives and other fiscal stimulus measures, can this be achieved. This will allow China to move from a pure manufacturing entity to a one-stop service entity from R&D to project completion, so many  China Plastic Handle Manufacturers are now undergoing transformation and upgrading in order to occupy a broader market development space.

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