China is the largest producer of injection molding machines in the world, ranking 1st in the world on both yield and consumption. Chinese injection molding machine industry is mainly distributed in Guangdong Jiangsu and Shandong provinces accounting for 88% of total enterprises in Chinese injection molding machine industry, as per a report by Research and Markets.
Totally speaking, East China takes absolute advantages, of which enterprise quantity in Zhejiang province accounts for 61%, having increased by 14 enterprises over that in 2005. In 2000, market capacity of the whole industry realized RMB 4.598 bln, increasing to RMB 14.578 bln in 2006. Following it, per capita sales revenues have been increasing year after year, from RMB 198,114 in 2000 to RMB 462,012 in 2006 up by three times. Totally speaking, the market still kept a stable growth and gross profit margin is in decline; while profits are rapidly climbing. Undoubtedly, all of these have showed that China Injection Molding Machine Industry has been in a growing period.
In the past few years, injection molding machine producers have got greatly improved on technology and management. However, compared with those in developed countries, injection molding machines in China still have a way to catch up on technology and varieties. In detail, there is still not little blank on such varieties as super-large or special precision injection molding machines; meanwhile, self-support rate of home-made injection molding machines for products processing is only about 45%; while for high-end products processing, most adopt imported injection molding machines. Totally speaking, research and manufacturing of injection molding machines cannot still satisfy demands brought by development of plastics industry in China.
As for industrial machinery, presently most of other machinery processing enterprises have got poor benefits; while only injection molding machines have rapidly developed. And with sustaining and promising market, many enterprises which originally produced machine tools, textile machinery and power equipments, also started to produce injection molding machines. And meanwhile, newly-established injection molding machine producers are also rapidly growing; therefore, there mainly exist price war and discount war for ordinary injection molding machines.
Since many automobile manufacturers and electronics & electrical appliances manufacturers congregates on ‘Yangtze River Delta’ region, now major consumption market of injection molding machines in China is spreading from the South to the North especially adjacent areas of Shanghai.
Interestingly, Chinese processors offer products that are cheaper than many available alternatives, yet offer the same quality that Western customers deserve and expect. This is possible due to
Extremely Low Labor Costs: Even though the injection molding industry uses a lot of expensive capital equipment, labor costs are still the largest single component of production costs. China’s main cost advantage in mold making comes from savings in this area. Chinese wages for toolmakers are among the lowest in the world. In the US a tool maker earns over US$40000 pa, while his Chinese counterpart could be doing the same job for US$1000. The Chinese labor force is also well educated, thus keeping training costs low, and Chinese factories do not have the high healthcare and insurance costs of the US and Europe. Workers in capital-intensive factories in USA can be several times more productive than their Chinese counterparts. This is because U.S. plants have replaced many factory workers with complex flexible-automation and material-handling systems. This has reduced labor costs but raised the costs of capital and support systems. Chinese factories reverse this process, however, by taking capital out of the production process and reintroducing a greater role for labor. Parts are designed to be made, handled, and assembled manually. This reduces the total capital required by as much as one-third. So while output per worker may be lower in Chinese factories, the combination of lower wages and less capital typically raises the return on capital above U.S. factory levels.
Low Factory Overhead Costs: Factory overhead costs for many Western injection mold manufacturers are high compared with certain foreign competitors. This is partly the result of firms operating at less than full capacity because of weak business conditions and intense foreign competition. Many Chinese firms operate 24 hours a day, 7 days a week, thus more fully utilizing their expensive machinery and making it relatively less costly (subject to adjustments for power saving schedules).
Tooling on Cost Savings Give You More Options: A central benefit of Chinese tooling is that it allows the customer to make a profit using high-quality injection molding techniques at lower volumes than would often be required in the West. For example, customers using vacuum formings can often save a great deal of money by switching to China-based injection molding.
(Reference from plastemart.com)
No comments:
Post a Comment