"Price adjustment, orders may continue to decline; if not adjusted, profits will be affected." It is the New Year's Day, but Li Weijun, the owner of the solid wood flooring factory, is quite troubled. The rising production costs make him embarrassed. Yesterday, the reporter learned from some solid wood flooring manufacturers that due to rising production costs, manufacturers have raised the ex-factory price of the floor, which directly led to the decline in orders. Some solid wood flooring factory owners even lost 20,000 yuan a month.
Solid wood floors have raised the ex-factory price
Most of the solid wood floors currently sold in our city are mainly concentrated in Zhejiang and Jiangsu. "My factory is located in Nanxun, Zhejiang. There are about 300-400 local large-scale enterprises." Li Weijun, who has been engaged in the production of solid wood flooring for many years, said that Nanxun has become an important flooring hometown in China, and timber from Southeast Asia, Africa and North America. They entered Nanxun one after another and were processed into floors by layers.
According to Li Weijun, the average one-square meter solid wood floor is increased by about 2%, and the retail price is increased by at least 5 yuan per square meter. "In the past, the solid wood floor of more than 100 yuan per square meter can hardly be found now." Li Weijun said.
"Due to rising production costs, this time the price adjustment enterprises are also helpless, so the scope is not large." Chongqing owner Yao Houquan, who has a production plant in Nanxun, said that the wood is mainly from Southeast Asia and Africa, but in recent years, these regions have been restricted by the government Timber exports. Timber exports have continued to decline, leading to rising prices.
"Longfeng Tan rose by 15 yuan per square meter last year, and now the price is around 330 yuan per square meter." Yao Houquan said that for a ton of solid wood raw materials, only the freight cost has risen to about 290 yuan. Coupled with the increase in labor costs and rentals of factory sales facades since last year, companies have to increase product prices.
Orders decline, companies lose 20,000 yuan per month
"Now the solid wood flooring business is becoming more and more difficult to do." Yao Houquan revealed that since last year, the labor cost alone has risen to 3,000 yuan per person, and the high cost directly compresses the profits of the enterprise. "Previously, profits could be at least 30% to 40%, and since last year, profits have been at most about 20%." Yao Houquan said.
"The profits are being squeezed, and the company can only increase the ex-factory price of the product, but the price has been adjusted, which has led to the continuous reduction of orders." Liu Wentao, a person in charge of a manufacturer in Nanxun, Zhejiang, has been sighing. He said that in the first half of last year, he raised the price twice. Since October last year, his order volume has decreased month by month.
"The price is high, and many customers turn to products such as composite flooring." Liu Wentao introduced that he has made statistics. Since October last year, the number of solid wood flooring orders has shrunk by nearly 60%. "As soon as there are few orders, companies will lose about 20,000 yuan every month." Liu Wentao said helplessly.
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