In 2008, air compressors entered a period of accelerated natural selection.

As a point of reference, the New Year's Day in 2008 saw that many Chinese air compressor enterprises had used up their orders for 2007. Meanwhile, the new Labor Contract Law was officially enforced on January 1st. In addition, labor (wages for workers in the compressor industry in 2008 increased by 20% compared with the same period in 2005), land (land prices in 2008 increased by 100% compared with the same period in 2005), raw materials (prices for raw materials in 2008 increased by 20% compared with the same period in 2005), profits (profits in 2008 decreased by 30% compared with the same period in 2005) and other cost pressures continued to rise. The air compressor industry base faced another choice: to close or not to close? To relocate inland, relocate overseas, or to persevere? That is the question. Due to the above reasons, the production costs for many air compressors in China have risen. Manufacturing costs may further increase in the future, and related enterprises will enter an accelerated period of "survival of the fittest". During this process, some costs may need to be paid, and it is inevitable that some enterprises will go bankrupt. In addition, the new Labor Contract Law implemented on January 1, 2008, and the "merger of two taxes" may also affect the cost of air compressors made in China in the future.