How should packaging machinery manufacturers respond to rising raw material prices?

• source: Willa He;
• Time: 2021-03-06
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Since the beginning of this year, the increase in raw material prices and various expenses has become a common topic in the packaging machinery manufacturing industry. With the further implementation of the "Labor Law" and other laws, the reform of the employment system, the increase in labor costs, and the appreciation of the renminbi, the monetary tightening, Increasing economic factors affecting enterprises have made it even worse for packaging machinery manufacturers and paper products enterprises that are not profitable. Enterprises are facing multiple problems that need to be resolved. Multiple pressures have led to thinner and thinner corporate profits. How should the company go? The author conducted an investigation around this issue.

One is the main contradictions and problems that companies are not adapting to changes in the situation. Business managers must clearly understand and accurately grasp the problems and deficiencies in their work, keep a clear mind, and clarify the direction of their efforts. At present, the main problems and prominent contradictions existing in packaging machinery manufacturing enterprises: First, some enterprises have three problems. That is: ideological concepts are not compatible with the development of the situation; the status quo of the talent team is not compatible with the urgent needs of people for the development of the enterprise; the understanding and use of people are not compatible with the laws of market economy.

The second is the weak technological innovation ability, the slow progress in process technology, and the development of new products has not fundamentally got rid of the situation of imitation research tracking.

The third is the extensive economic growth mode, the low profitability of products, and the weak competitiveness. Economic growth and efficiency enhancement are still mainly driven by scale, and there is still a certain gap between the consumption of energy, labor and other resources compared with the advanced level.

Fourth, the awareness of market, competition, and worry is not strong, the awareness of serving the market, serving customers, and the sense of urgency and responsibility for development are not strong. Human resources cannot keep up with the demand for high-level and high-speed development of production. The reason for the shortage of talents in enterprises is that the development speed is too slow. Fifth, the management is extensive, and the refined management has not yet been realized. Sixth, the managers of some companies do not rely on scientific management to seek development in the production and operation of the company. They always have a fluke mentality and rely on policy loopholes to seek temporary survival.