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    Home > Chemicals Industry > China Chemical > How will companies in the pharmaceutical machine industry respond to the rise in commodity prices?

    How will companies in the pharmaceutical machine industry respond to the rise in commodity prices?

    • Last Update: 2022-02-23
    • Source: Internet
    • Author: User
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    [ Market Analysis of Chemical Machinery and Equipment Network ] Bulk commodities refer to the material commodities that can enter the circulation field, but are not retail links, have commodity attributes and are used for industrial and agricultural production and consumption, such as crude oil, non-ferrous metals, steel, etc.
    are all commodities
    .
    It is understood that since 2021, the prices of commodities, including steel, have continued to rise.
    Due to the rising cost of these raw materials, some manufacturing companies, including pharmaceutical machines, have been affected
    .

    Chemical Machinery Equipment Network Market Analysis Chemical Machinery Equipment
    Commodities, including steel, rise in price
    Commodities, including steel, rise in price

    In the pharmaceutical equipment industry, the steel industry belongs to one of its upstream industries.
    It mainly provides various specifications of steel including steel plates and steel pipes for the pharmaceutical equipment industry, and is used for the main structure, brackets and various non-standard mechanical parts of pharmaceutical equipment.

    .

     

      Judging from the materials used for pharmaceutical equipment, some data show that the material cost of steel accounts for more than 70% of the total manufacturing cost of pharmaceutical equipment.
    Therefore, in the case of rising steel prices, the total manufacturing cost of pharmaceutical equipment will also bring a certain amount.
    pressure
    .

     

      The author has learned that in recent years, many large domestic pharmaceutical machine enterprises that have been actively transforming and upgrading are facing the pressure of cost control due to the increase in raw materials year by year
    .

     

      For example, Chutian Technology mentioned in the 2019 semi-annual report that the net profit attributable to shareholders of listed companies declined during the reporting period, because the competition in the pharmaceutical equipment industry continued to be fierce, labor costs rose, and the company's products were in the period of iterative upgrades.
    , raw materials, components and other costs have risen, resulting in a decline in the company's gross profit margin compared with the same period of the previous year; Tofflon also mentioned in the 2018 annual board of directors' business review that "the complexity of systematic products has increased, raw material prices have risen, The significant increase in labor costs and other reasons caused the company's costs to increase significantly compared with the previous year
    .
    "
     

      The digital upgrade of the pharmaceutical machine industry is imminent
     
      The digital upgrade of the pharmaceutical machine industry is imminent

      How should the pharmaceutical machine industry respond to rising raw material costs? The industry pointed out that in the face of increasing cost pressure, manufacturing enterprises can accelerate digital transformation, reduce costs and increase profits by increasing the added value of products
    .

     

      According to the draft for the "14th Five-Year Plan for the Development of Intelligent Manufacturing", by 2025, the digitalization of manufacturing enterprises above designated size will be basically popularized, and the backbone enterprises in key industries will initially realize intelligent transformation
    .
    By 2035, digitalization will be fully popularized in manufacturing enterprises above designated size, and key enterprises will basically achieve intelligent transformation
    .

     

      It can be said that accelerating the digital transformation of the manufacturing industry, including the pharmaceutical machine industry, is imminent
    .
    The digital transformation of pharmaceutical machine enterprises can improve management efficiency and reduce enterprise costs on the one hand; on the other hand, it can better ensure the quality and safety of drugs and help the entire pharmaceutical industry achieve high-quality development
    .

     

      Increasing the added value of products is also a plan that many pharmaceutical machine companies are currently making.
    For example, recently, an investor asked Canaan Technology, a domestic solid dosage intelligent factory overall solution provider, on an interactive platform: "As a pharmaceutical machine industry, Affected by the rise in commodity prices and the cost of Canaan’s raw materials, will the company raise the price of its products?” To this question, Canaan Technology replied that the increase in the price of raw materials will have a certain impact on the company, and the company will follow-up through the overall project and high-end products.
    The high added value of products and new technologies, and through friendly negotiation with customers, will reduce the impact
    .

     

      Original title: How will companies in the pharmaceutical machine industry respond to the rise in commodity prices?
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