Stone machinery industry is now rising prices, high value-added products, new trends

Ups and downs... At the end of the year, many stone companies have received a notice of price increase from upstream stone equipment suppliers. A number of stone machinery companies, including Jubang Machinery, Shengda Machinery, Haiende Electromechanical, and Wanfu Machinery, have issued price adjustment notices to customers.

“The price increase is really helpless.” Many people in charge of stone machinery companies talked about the collective price increase, which expressed the difficulty of the market. Since last year, the prices of industrial raw materials such as steel, coal, nonferrous metals and chemicals have continued to rise. Especially in the first half of last year, steel mill production continued to record, steel prices remained high. For the mechanical equipment industry, which uses steel as the main raw material, the raw materials “rise” have also brought enormous cost pressure to these machinery enterprises.

According to industry insiders, in order to cope with the rising costs brought about by raw materials, accelerating the research and development of high value-added products and reducing the cost of refined management have become the only way out for Nanan's machinery and equipment industry.

Phenomenon - stone machinery pile up price increase

This wave of price increases has already begun to appear in October 2017. In October last year, Black Cyclone Saw Industry Co., Ltd. issued a notice of price increase. In the notice, the black cyclone saw industry said that since last year, steel prices have continued to rise, logistics costs have increased by 30%, and other accessories have risen, which has put a lot of pressure on the company's operations. The meager profit margins of the company have been compressed again and again.

"With internal control, it has been unable to overcome the pressure brought by rising raw materials. The era of low steel prices is gone forever." The relevant person in charge of the black cyclone saw industry is not pessimistic. The price increase, the black cyclone is scheduled to start on January 1, 2018, the price of all products increased by 8%-10%.

After a lapse of one month, the price surge ushered in a collective outbreak at the end of 2017. On November 18th, Quanzhou Hainde Electromechanical Technology Development Co., Ltd. also issued a price adjustment notice. The rising price of raw materials is still the main reason for its price increase. It is worth mentioning that Hained’s product price has been raised by 5% since December last year.

In the following December, Jubang Machinery, Shengda Machinery, Wanfu Holdings, Lida Stone Machinery and other companies issued price increase notices in succession. Most of the price increase time began in January 2018 or February, and the price increase range From 5% to 10%.

"A lot of raw materials prices have risen a bit outrageously, but in order to stabilize the market, there is no way to transfer the rising costs to customers. Now the real economy is really difficult." Talking about price increases, Cai Jianhua, general manager of Jubang Machinery said.

Reasons - raw materials rose more than 50%

The rise in cost is undoubtedly the most important reason for the collective price increase of stone machinery. In a large number of famous names, the price increase of steel as a raw material is the most trepid of all mechanical enterprise owners.

"How fast steel is going up, let's just say, now buying steel can fight inflation!" Cai Jianhua often tempted the price fluctuation of steel. He told reporters that the trend of steel price hikes began at the end of 2016. "At that time, one ton of rebar was less than 2,000 yuan, and now the price is more than 3,000 yuan, an increase of more than 50%." Cai Jianhua said.

“The raw material, our steel has risen by 800 yuan per ton, and the castings are even worse. It has risen by 1,000 yuan per ton.” Cai Shangdie, general manager of the mechanical machinery company, is very sensitive to price fluctuations.

Cai Shangdie said nothing. The data shows that compared with the technically difficult special steel, the profit of rebar is now more than 30%, the profit of 1 ton of rebar exceeds 1,000 yuan, and the spot price is now around 3,700 yuan.

Since last year, the price of basic allocation to outer packaging has been rising. Due to the rising cost of upstream supply chains, steel prices have changed every day. Coupled with the frenzy of environmental remediation sweeping across the country, some small steel mills are facing a shutdown. The supply of steel is in short supply, and the price increase becomes inevitable.

"Now many companies' profits are relatively thin. We can't raise the price of the product immediately if the cost rises. The market terminal can't accept it at all. This brings to the company a further compression of profits, and the real economy is really not good." When talking about the price increase of raw materials, Lei Zhihua, deputy general manager of Xingong Machinery, was quite helpless.

More difficult is that in addition to steel, the prices of raw materials such as rubber and copper have risen to varying degrees. Coupled with the increase in hidden costs such as labor, management and environmental protection, the Nanan stone machinery and equipment industry is facing tremendous pressure. Since last year, the domestic environmental protection storm has intensified. The provinces of Hebei, Hubei, Gansu, Guangdong, and Shanghai have undergone large-scale rectification. The work of shutting down the business and shutting down the green is also non-stop. More and more small and medium-sized enterprises have been shut down. The subsequent shortage of supply is also one of the elements that has led to price increases in the stone machinery industry.

"The whole raw materials have risen, the freight rate has risen, and the environmental protection has also increased. Therefore, the price increase of stone machinery is inevitable," said Li Qunsheng, chairman of Wanfu Holding Group.

Way out - high value-added products become breakthroughs

The price increase has become inevitable. However, most companies understand this when communicating with downstream stone companies. "In the case that the price increase is not particularly large, our downstream companies actually value the quality and quality of the equipment," said a person in charge of a stone company.

Even so, how to maintain the competitiveness of enterprises in the market today in the price increase is still a problem that many stone machinery business owners are guilty of every day. Strengthening internal control and in-depth research and development has become a double insurance for many enterprises to stabilize the market.

In the past two years, the competition in the stone market has become more and more fierce, and the profits are getting thinner. Today, the cost is reduced by 10%, which is equivalent to a 20% increase in profits. In the era of meager profit, in addition to making money, it is more important to use cost-saving methods to reduce costs and increase profits. This has become the consensus of enterprises.

"We are also constantly striving to continuously control the potential through the company itself, and strive to control costs. In fact, for a long time in the past, we have been stabilizing the price of products." Hainede mechanical and electrical technology marketing department head said.

In Cai Jianhua's view, the quality of stone machinery is uneven, which has been plaguing the orderly development of the industry, thus causing many problems such as low efficiency of stone production and processing. If you want to leap forward under the wave of mechanization, it is necessary to start from the "quality" and provide a tool for the stone production and processing enterprises.

To this end, Jubang is also constantly digging deep into the high-end stone equipment market. Recently, Jubang has developed a visual intelligent infrared bridge cutting machine that combines a visual recognition system. According to reports, this machine realizes automatic measurement, automatic analysis of orders, automatic typesetting, and directly avoids bad areas on the slate image, and automatically counts the completion of orders. Relying on these functions, an employee can operate 2-3 machines at the same time, which can save the company more than 50% of labor costs, while maximizing the use of plates, and the yield rate is 5%-10% higher than manual typesetting.

"In the end, the appeal of machinery and equipment is to solve the pain points of stone enterprises and promote the development of products suitable for them. In the process of transformation and upgrading of the stone industry, mechanical equipment must not only provide quality-assured equipment, but also stone enterprises. Divide the worry and improve the efficiency of production and processing." Guo Bingsheng, general manager of Shanghai Jianrui Industrial Co., Ltd. said.

According to industry insiders, the market is changing rapidly, and price fluctuations are difficult to grasp. The stone machinery enterprises can only develop in the direction of high value-added products. "With the advent of the Internet and the era of big data, the integration of stone machinery and computer technology and network technology, the development of intelligent and digital development will become the focus of competition in stone processing enterprises. Only by working hard in this direction can we cope with change. Market." Li Qunsheng said.

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