Reasons for price rise of injection molding service

For the injection molding industry, every round of development will encounter many new problems. This year's problem is partly due to rising prices. The following is a brief description of the reasons for the rise in injection molding costs.
1. Increase of labor cost
For the Pearl River Delta, the artificial head up is the cause of headache. In particular, Shenzhen raises the minimum basic wage almost every year. Although the injection technician's salary is higher than the basic salary, but after each increase, the employee's salary must also rise. In addition, the difficulty of recruitment also forces the adjustment of salary structure, and the rising labor cost has become a basic phenomenon in the injection molding industry in recent years;
2. The price of raw materials rises
Due to the problems of plastic production, the fluctuation of oil price and raw material price also lead to the increase of injection molding cost. In the second half of 2016, due to the rising prices of basic materials, the prices of various materials rose to varying degrees, and some of the increases rebounded. More than 20%, although it will fall after the year, the overall cost is still much higher than before;
3. The price of auxiliary materials rises
There are many auxiliary materials used in injection molding production, including paper, protective film, lubricant and various mechanical parts. These materials have different degrees of price increases, such as the occurrence of more than 60% of the paper, the value of protective film increases. Due to the relatively large demand for labor, there is also a significant increase, and other parts with high prices are also frequent problems;
4. Rising cost of capital
The increase of loan term and capital investment is the reason for the increase of capital cost. Sometimes the competition between peers will lead to insufficient prices, bring unreasonable bill settlement methods to customers, increase the operating costs of funds and other reasons for rising costs.
Of course, the loss and internal consumption in the production arrangement are also quite expensive, but this is the operation level of the injection molding plant. This can not be attributed to the rise in processing prices, but to the performance of insufficient production level of factories.