Rising raw material prices - how packaging machinery manufacturers respond

by violet0807 on 2008-09-20 16:56:34

Since the beginning of this year, the increase in the prices of raw materials and various fees has become a common topic in the packaging machinery manufacturing industry. With the further implementation of laws such as the "Labor Law," reforms in the labor employment system, rising labor costs, coupled with the appreciation of the RMB, tightening of credit, and increasing factors affecting corporate economics, this situation is adding insult to injury for packaging machinery manufacturers and paper product enterprises that already have low profits. These companies face multiple challenges that need to be resolved. Multiple pressures are causing profits to become increasingly thin, raising the question: how should these companies proceed? In light of this issue, I conducted an investigation.

### 1. Enterprises' Lack of Adaptation to Changing Circumstances, Main Contradictions, and Problems

Enterprise managers must clearly recognize and accurately grasp the existing problems and deficiencies in their work, maintain a clear mind, and clarify the direction of effort. The main problems and prominent contradictions currently facing packaging machinery manufacturing enterprises are as follows:

1. Some enterprises exhibit three forms of non-adaptation:

- Their ideological concepts do not align with the development of current trends.

- The current state of their talent pool does not meet the urgent needs of enterprise development.

- Their understanding and use of talent are not in line with the laws of the market economy.

2. Weak innovation capabilities in technology, slow progress in process technology, and new product development still largely relies on imitation and tracking rather than fundamental breakthroughs.

3. Coarse economic growth models, low profitability of products, weak competitiveness, and reliance on scale expansion to drive economic growth and efficiency improvement. Energy consumption, labor, and other resource utilization still lag behind advanced levels.

4. Weak market awareness, competitive awareness, and sense of crisis. Service-oriented market and customer service consciousness, as well as a sense of urgency and responsibility for development, are insufficient. Human resources cannot keep up with the demand for high-level, high-speed development, which is caused by excessively slow development speeds.

5. Coarse management styles, and the lack of refined management practices.

6. Some enterprise managers rely not on scientific management for development but instead on侥幸psychology (lucky breaks) and exploiting policy loopholes to secure temporary survival.

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This analysis highlights the pressing need for packaging machinery manufacturers to address these issues through strategic reform, innovation, and improved management practices to remain competitive in the face of mounting challenges.