Since the beginning of this year, the words “crunchingâ€, “insufficient enterprise development momentum†and “market downturn†have continued to appear in public view. The economic downturn will inevitably affect the development of Nanan's manufacturing industry, which also affects the upstream and downstream industrial chains surrounding its survival. As one of the downstream links that does not count, paper, plastics and other packaging industries also "shot." A number of industry insiders said that this year's packaging industry has encountered the most difficult situation since its development.
However, according to Wang Wenmai, deputy general manager of Nan'an Hengfa Packaging Co., Ltd., the largest paperboard manufacturer in Nan'an, the paperboard orders began to increase recently and the market has shown signs of recovery.
The reporter learned that most of the current packaging companies survived in a low-profit environment. In order to break through faster, companies have actively carried out technical reforms, improved the level of technology, and opened up new customers, striving to survive in the “difficult year in historyâ€.
The current status of plumbing and packaging performance decreased by up to 40%. In the first half of the year, the company’s turnover increased by 15% year-on-year, but it fell slightly in the last two months. Overall, it was optimistic. “The general manager of Fujian Jiahua Packaging Co., Ltd. Chen Danhong said that this year’s environment is not good. It has been quite good to have achieved this result.
As a leader in the packaging industry in Nanan, Ka Wah Packaging in the successful development zone has set a benchmark in the industry. Although there has been a declining trend in performance in the past two months, Chen Danhong appears to be relatively calm and her source of confidence is not unreasonable.
"The packaging industry will not be eliminated in 50 years. People can not wear clothes, products can not lack packaging." She described the importance of packaging. The theory of "packaging as clothes" was endorsed by many people in the industry.
As a downstream industry of Nanan Manufacturing, the packaging industry has been in an obscure position, but the pace of development has become known in recent years. According to Fu Yangyi, secretary general of the Nan'an Printing Association, since the founding of the Association in 2007, there have been more than 110 members. This year, four newly-established packaging companies in Kangmei and Langcang have also joined the meeting. “Since the beginning of this year, packaging companies have closed down in Jinjiang, Shishi, Fuzhou and other places. There have been no new events in Nanan since the closure of the company. This is rare,†said Fu Yangyi. Although this year is difficult, the packaging industry in Nanan is still slow. development of.
Even so, the establishment of a new company cannot hide the industry's development difficulties. “The outlook for the packaging industry is very good, but it is very sad now.†Deputy Secretary-General Huang Nannan Printing Association said with resignation, because he is also the owner of a packaging company. An industry source who did not wish to be named revealed to reporters that in the first half of this year, Nanan packaging companies, especially plumbing and packaging companies, had experienced different degrees of business declines, some even reaching 40%.
“More than 110 member companies, including more than 70 companies engaged in packaging, and more than 20 companies specializing in plumbing packaging,†Fu Yangyi said. This year, these companies are complaining. For this reason, the association also held a special meeting last month. Plumbing packaging company forum to discuss countermeasures.
Difficulties deep in the price war and the difficulties in meeting people to sit down and discuss how to deal with the crisis, this situation is rarely seen before 2014.
“The business volume in the past few years could not be eaten. It is not enough to eat this year.†Fu Yangyi said that 2007 was the fastest growing year for the packaging industry in Nanan, followed by years of steady growth. Since last year, it has begun to decline in large areas, this year. It is the hardest year. One of the important reasons is that the pace of development of the plumbing industry has slowed down, directly affecting the downstream industries.
Most of the companies are too dependent on plumbing companies. This view was approved by Deputy Secretary-General Huang. "Now it's dumbfounding. Laughter is that compared to other industries, packaging companies are less affected by the market and have something to do. And cry is that now the payment is very slow and the pressure on capital turnover." He said, the slow payment back into the industry Common problem, if the situation is good, it can be paid back within half a year. It is very difficult this year.
Deputy Secretary-General Huang said it is true. Wang Wenmai said that due to the industry's characteristics, the packaging industry needs to accumulate large quantities of inventories, and the cash flow is slow. If the money returns slowly, the company's financial pressure will be even greater.
From the corporate level, due to the credit crunch, light industry has continued to decline in credit support, leading to a tighter funding chain for some companies. Tight funding chain has become an important obstacle to the development of packaging companies.
The person in charge of a number of packaging companies also stated that rising production costs such as human resources and corporate management, and disorderly industry competition have become the most important challenges faced by current enterprises.
"The competition between enterprises is too great." Chen Danhong said that disorderly competition among enterprises directly led to the decline of industry profits. Deputy Secretary-General Huang deeply felt: "This year, corporate profits have been reduced by at least 20%."
"The quality is better than the difference is also cheap, you say how to do this market?" Fu Yang Yi took out two identical plumbing boxes told reporters.
It is understood that the current size of packaging enterprises in Nanan is relatively small, about 80% of which are households of less than 30 people. The market competitiveness is weak and the development space is small. In order to compete for customers, there are many cases of disorderly competition, and price wars have cropped up.
Wang Wenmai revealed that the packaging industry's sales radius is about 100 kilometers, beyond this radius, profits will become thinner and thinner. "So most of the business is concentrated in Nan'an. Can competition be small?"
"For companies that mainly use plumbing companies as their customers, we have reached three consensuses at the forum: Stop vicious internal competition; Establish industry payment rules; Strengthen business cooperation and achieve resource sharing." Fu Yangyi said.
Way out to develop high-end products to attack the international market According to Fu Yangyi's argument, this year's packaging industry is living and flat. In spite of this, some corporate days are still flamboyant.
Reporters recently saw at the Hengfa plant that trucks handling cargo are frequent. “Unlike other local companies, Hengfa’s business is mostly from Xiamen. The goods on these cars are basically destined for Xiamen and there are about 100 vehicles a day.†Wang Wenmai pointed at the vehicles and said that the company mainly produces cardboard, which is a carton packaging company. In the upstream industry, there are hundreds of cooperative customers and the industry has a wide coverage. The market impact is not obvious.
“At the end of this year, the company’s 400-acre new plant in Chengdu will be put into production.†Wang Wenmai said that the economy in the southwest region has developed rapidly and expanding the business into these areas will inject new impetus into the company. As early as seven or eight years ago, Hengfa had purchased about 200 acres of industrial land to build a branch in Anxi, which has become Anxi's largest tea packaging supplier, covering about 90% of the local tea packaging market share.
Similarly, Ka Wah Packaging is also expanding its business coverage and began to develop into high-end markets a few years ago. “Kiawa timely pays attention to customer satisfaction and market demand. With the changes in the market, customers at home and abroad have higher requirements for packaging. In recent years, we have continued to innovate and strive for excellence in terms of process, design, structure, and quality. Become the best overall packaging solution service provider.†Chen Danhong said.
The overall quality of products has improved, and the time for Ka Wah to expand its business overseas has matured. In 2009, Ka Wah Xiamen Marketing Division was established, focusing on the European market. “The Ministry of Foreign Trade has been recognized by customers and the business volume has increased year by year, and it has achieved profitability,†said Chen Danhong. In addition, e-commerce has also become one of the ways that K. Wah breaks through: At present, K. Wah has started operations on e-commerce platforms such as Alibaba and Tmall.
In addition to constantly expanding new areas in business, timely updating of equipment is also an important reason why companies can keep up with market development.
Just last month, Hengfa invested millions of dollars in the installation of corrugated board conveyor system debugging success. Wang Wenmai said that the corrugated board transport system can change the chaos of past product stacking and improve the efficiency of product shipments by nearly 40%. This reporter learned that Hengfa will carry out technical reforms almost every year and invest millions of dollars each year. "The technical content of this industry is not high, but the high requirements for mechanical equipment, good equipment can produce a higher quality product." He said.
However, according to Wang Wenmai, deputy general manager of Nan'an Hengfa Packaging Co., Ltd., the largest paperboard manufacturer in Nan'an, the paperboard orders began to increase recently and the market has shown signs of recovery.
The reporter learned that most of the current packaging companies survived in a low-profit environment. In order to break through faster, companies have actively carried out technical reforms, improved the level of technology, and opened up new customers, striving to survive in the “difficult year in historyâ€.
The current status of plumbing and packaging performance decreased by up to 40%. In the first half of the year, the company’s turnover increased by 15% year-on-year, but it fell slightly in the last two months. Overall, it was optimistic. “The general manager of Fujian Jiahua Packaging Co., Ltd. Chen Danhong said that this year’s environment is not good. It has been quite good to have achieved this result.
As a leader in the packaging industry in Nanan, Ka Wah Packaging in the successful development zone has set a benchmark in the industry. Although there has been a declining trend in performance in the past two months, Chen Danhong appears to be relatively calm and her source of confidence is not unreasonable.
"The packaging industry will not be eliminated in 50 years. People can not wear clothes, products can not lack packaging." She described the importance of packaging. The theory of "packaging as clothes" was endorsed by many people in the industry.
As a downstream industry of Nanan Manufacturing, the packaging industry has been in an obscure position, but the pace of development has become known in recent years. According to Fu Yangyi, secretary general of the Nan'an Printing Association, since the founding of the Association in 2007, there have been more than 110 members. This year, four newly-established packaging companies in Kangmei and Langcang have also joined the meeting. “Since the beginning of this year, packaging companies have closed down in Jinjiang, Shishi, Fuzhou and other places. There have been no new events in Nanan since the closure of the company. This is rare,†said Fu Yangyi. Although this year is difficult, the packaging industry in Nanan is still slow. development of.
Even so, the establishment of a new company cannot hide the industry's development difficulties. “The outlook for the packaging industry is very good, but it is very sad now.†Deputy Secretary-General Huang Nannan Printing Association said with resignation, because he is also the owner of a packaging company. An industry source who did not wish to be named revealed to reporters that in the first half of this year, Nanan packaging companies, especially plumbing and packaging companies, had experienced different degrees of business declines, some even reaching 40%.
“More than 110 member companies, including more than 70 companies engaged in packaging, and more than 20 companies specializing in plumbing packaging,†Fu Yangyi said. This year, these companies are complaining. For this reason, the association also held a special meeting last month. Plumbing packaging company forum to discuss countermeasures.
Difficulties deep in the price war and the difficulties in meeting people to sit down and discuss how to deal with the crisis, this situation is rarely seen before 2014.
“The business volume in the past few years could not be eaten. It is not enough to eat this year.†Fu Yangyi said that 2007 was the fastest growing year for the packaging industry in Nanan, followed by years of steady growth. Since last year, it has begun to decline in large areas, this year. It is the hardest year. One of the important reasons is that the pace of development of the plumbing industry has slowed down, directly affecting the downstream industries.
Most of the companies are too dependent on plumbing companies. This view was approved by Deputy Secretary-General Huang. "Now it's dumbfounding. Laughter is that compared to other industries, packaging companies are less affected by the market and have something to do. And cry is that now the payment is very slow and the pressure on capital turnover." He said, the slow payment back into the industry Common problem, if the situation is good, it can be paid back within half a year. It is very difficult this year.
Deputy Secretary-General Huang said it is true. Wang Wenmai said that due to the industry's characteristics, the packaging industry needs to accumulate large quantities of inventories, and the cash flow is slow. If the money returns slowly, the company's financial pressure will be even greater.
From the corporate level, due to the credit crunch, light industry has continued to decline in credit support, leading to a tighter funding chain for some companies. Tight funding chain has become an important obstacle to the development of packaging companies.
The person in charge of a number of packaging companies also stated that rising production costs such as human resources and corporate management, and disorderly industry competition have become the most important challenges faced by current enterprises.
"The competition between enterprises is too great." Chen Danhong said that disorderly competition among enterprises directly led to the decline of industry profits. Deputy Secretary-General Huang deeply felt: "This year, corporate profits have been reduced by at least 20%."
"The quality is better than the difference is also cheap, you say how to do this market?" Fu Yang Yi took out two identical plumbing boxes told reporters.
It is understood that the current size of packaging enterprises in Nanan is relatively small, about 80% of which are households of less than 30 people. The market competitiveness is weak and the development space is small. In order to compete for customers, there are many cases of disorderly competition, and price wars have cropped up.
Wang Wenmai revealed that the packaging industry's sales radius is about 100 kilometers, beyond this radius, profits will become thinner and thinner. "So most of the business is concentrated in Nan'an. Can competition be small?"
"For companies that mainly use plumbing companies as their customers, we have reached three consensuses at the forum: Stop vicious internal competition; Establish industry payment rules; Strengthen business cooperation and achieve resource sharing." Fu Yangyi said.
Way out to develop high-end products to attack the international market According to Fu Yangyi's argument, this year's packaging industry is living and flat. In spite of this, some corporate days are still flamboyant.
Reporters recently saw at the Hengfa plant that trucks handling cargo are frequent. “Unlike other local companies, Hengfa’s business is mostly from Xiamen. The goods on these cars are basically destined for Xiamen and there are about 100 vehicles a day.†Wang Wenmai pointed at the vehicles and said that the company mainly produces cardboard, which is a carton packaging company. In the upstream industry, there are hundreds of cooperative customers and the industry has a wide coverage. The market impact is not obvious.
“At the end of this year, the company’s 400-acre new plant in Chengdu will be put into production.†Wang Wenmai said that the economy in the southwest region has developed rapidly and expanding the business into these areas will inject new impetus into the company. As early as seven or eight years ago, Hengfa had purchased about 200 acres of industrial land to build a branch in Anxi, which has become Anxi's largest tea packaging supplier, covering about 90% of the local tea packaging market share.
Similarly, Ka Wah Packaging is also expanding its business coverage and began to develop into high-end markets a few years ago. “Kiawa timely pays attention to customer satisfaction and market demand. With the changes in the market, customers at home and abroad have higher requirements for packaging. In recent years, we have continued to innovate and strive for excellence in terms of process, design, structure, and quality. Become the best overall packaging solution service provider.†Chen Danhong said.
The overall quality of products has improved, and the time for Ka Wah to expand its business overseas has matured. In 2009, Ka Wah Xiamen Marketing Division was established, focusing on the European market. “The Ministry of Foreign Trade has been recognized by customers and the business volume has increased year by year, and it has achieved profitability,†said Chen Danhong. In addition, e-commerce has also become one of the ways that K. Wah breaks through: At present, K. Wah has started operations on e-commerce platforms such as Alibaba and Tmall.
In addition to constantly expanding new areas in business, timely updating of equipment is also an important reason why companies can keep up with market development.
Just last month, Hengfa invested millions of dollars in the installation of corrugated board conveyor system debugging success. Wang Wenmai said that the corrugated board transport system can change the chaos of past product stacking and improve the efficiency of product shipments by nearly 40%. This reporter learned that Hengfa will carry out technical reforms almost every year and invest millions of dollars each year. "The technical content of this industry is not high, but the high requirements for mechanical equipment, good equipment can produce a higher quality product." He said.
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