Management Discussion: how to prevent corporate profits slide carton – carton business, profit, landslides – Paper Industry

In recent years, Cardboard Industry's golden age in the past. China Corrugated paper Case there is excess supply business, profits year after year to reduce the difficulties. Highlight the plight of symptoms: serious yield decline, cardboard imbalance, small Carton Factory blind development, corrugated production line too much, working under capacity and the price of various manufacturers to malignant Competition The output value, Sell Profits drop limit, the company invariably dragged into a quagmire little profit. For example, Jiangsu, a large number of corrugated board production line, capacity utilization is less than 50%; with significant domestic and international prices of raw materials, many companies has shown a small profit or non-profit status.

Domestic carton industry, there is such a phenomenon is, of course, is not formed overnight. This potential conflict for many years, in non-standard Market economy , The inevitable dilemma. Fundamental problem is that our corrugated box industry long blind uncontrolled development.

Although the general feeling "hungry", but what really aware of corrugated board producers survive the crisis, is the significant domestic and international prices of raw materials.

Carton industry itself is the small profit margins, price wars are often caused by competition, both sides will suffer. Decline in product quality, company reputation down. Paper costs are based on the sales price of paper mills, and Business management Costs and paper consumption, because of the economic nature of the different enterprises and enterprise management, strong or weak, has high and low distinction. Such as foreign investment, joint ventures, state-owned enterprises of various cost than the private sector, but the former advanced production equipment, production speed, product quality and good and beneficial to reduce the production cost.

Carton profits decline because of the following specific points:
First, modern management level is not high, levels of economic efficiency is not ideal.
Carton industry, as small and medium enterprises are still the majority, while the number of large enterprise and the role of the space is limited, affecting the entire industry's overall level. Small is basically the traditional management in large enterprises as the traditional "emphasis on hardware over software" still a market ideology, resulting in management not keep up with equipment, the process of technological transformation, largely in the extensive enterprise management. Do not pay attention Talent Training and Recruitment Do not pay attention to product quality and raw material consumption and waste is too large. In order to get market share, taking the vicious competition means lower prices. Deficiencies in this area within the enterprise led to low profitability, a large number of enterprises running small profit, loss and even larger companies. Carton industry in Shanghai as an example: If the establishment of modern management of China Li, Joint, the new Qing, Sheng Bo companies, sales are more than 100 million profit in 10% of the economic benefits, they not only attach importance to the hardware, also software Under the great effort, hardware and software in hand, the average profit margins of 5% of loss-making enterprises rarely.

Second, the industry structure of production to be adjusted
Carton industry are used both large and small enterprises, small and complete production mode, it is not suited to industry and enterprise development, not only takes up space, capital, labor, small businesses, due to poor technological base , resulting in inferior products, not to industry production structure adjustment in the overall development of the industry must stop. Shanghai, Zhejiang, Jiangsu, Guangdong and other provinces and implementation of the "focus system board, decentralized Box" co-production within the industry a new pattern is to adjust the production structure within the industry a good way to help carton industry, will benefit the industry as a whole higher level of quality, help the industry lower production costs, large and help to overcome the industry, small and complete, each of the main situation. This production pattern of early implementation in a foreign country, the former stage of China Packaging Report Organization Carton industry work on the "centralized system board, decentralized Box" strengths and weaknesses of the discussion, many experts comments on the "centralized system board, decentralized Box" production pattern in the affirmative. Baoxie paper container packaging in the city, Shanghai Commission of publicity, organization was the large cardboard box under the guidance of accepted business, almost all small businesses use to buy giant carton board production line processing cartons, so that manufacturers production line utilization rate 85-90%. I believe that trade associations should make every effort to do this job.

Third, the product structure needs to be improved
Business over the past decade attention corrugated board production line technology equipment modification, this is correct, but ignore the following process of transformation. Quality problems in resolving the cardboard, cardboard boxes must be invested attention to the transformation, a processing device, such as multi-color high-precision high-speed water Print Slot Machine , Die Cutting Machine , Sticky box machine and other equipment, which is caused by the current carton products direct cause of the low grade. At present the international market development and domestic market demand in increasingly high demand printing, the development of multi-color network printing to sales packaging of goods transport packaging alternative to White Board Printing paper alternative Cardboard Printing, pre-fine corrugated alternative B, C corrugated lightweight low-weight, which saves resources and adds strength to abnormal Box Replace ordinary box that is convenient for consumers to carry and aesthetically pleasing. So carton companies must be innovative, to strengthen the equipment modification, development of new products, improve product quality, high-end product development to higher value added products.

Fourth, the basic raw materials drag
Paper products industry must meet the relevant industry, from the present situation, the paper industry capacity or insufficient supply of raw materials, from the variety, quantity, quality and specifications can not meet demand. With corrugated paper cartons, for example, is not only the number of issues, mainly the quality of high-strength corrugated paper to really very few, annual imports of low-weight high-strength corrugated paper around 5 million tons.

Now more developed areas in China, little boxes have no doubt that corporate earnings, and the situation in the further development. Must be recognized that such a rule: When the carton company in the market economy develops to a certain stage of the blind, is in crisis is inevitable, and only by the difficulties in most businesses the confusion, pain and loss, to recognize the seriousness of the situation. To seriously consider how to face the reality. Carton business only painful adjustment period, adjustment in the industry find a way out, to appear smooth on the carton industry, has entered a new period of development.

Carton business dilemma occurs in a market economy, should the return to a market economy to solve. "Started the trouble still end it," end it is the companies themselves.

Paper

I am a professional editor from China Suppliers, and my work is to promote a free online trade platform. http://www.frbiz.com/ contain a great deal of information about cnc water jet , turret punch welcome to visit!

Similar Topics :


Advertising



Comments are closed.

Advertising

Enter your email address:

Delivered by FeedBurner

Links
Alexa rank

Alexa rank is unknown.

PHP/MySQL Components, WordPress Plugins, and Technology Opinions at TravisWeston.com