Rising oil prices plus cost "processing pain"

With the step-by-step increase in refined oil prices, companies will be forced to adjust their industrial structure and save energy and reduce emissions. With the hands of the market to promote industrial upgrading and eliminate high energy-consuming industries. It is reported that this time the rise in oil prices will directly lead to a few percent increase in the cost of hardware companies. For those high energy-consuming hardware companies, the cost pressure will be even greater. Rising oil prices will trigger a series of rising raw material prices. The production costs of companies will increase indefinitely, posing severe challenges to the survival and competition of companies.

The rise in oil prices has virtually increased the logistics costs of hardware companies. It is understood that the oil price accounts for one-third of the hardware company's logistics costs, hardware companies spend the cost of logistics costs on the enterprise are not infrequent, therefore, the oil price increase has a great impact on the logistics and transportation of hardware companies. Recently, the price of oil has risen again. High oil prices have directly caused rising production costs. Because of the fierce competition in the hardware industry, the ability to conduct downstream prices has been poor, and the industry's gross profit has been quickly squeezed by high oil prices. The continuing high oil prices have caused the continuous increase in the cost of oil for the hardware industry and have had a profound impact on the development of the hardware industry.

Someone said: “Although the country has always taken various measures to stimulate domestic demand and stabilize foreign demand, it has also issued a series of measures such as raising export tax rebates, but the impact is limited. Not all hardware companies benefit from national policies. In order to achieve long-term development, enterprises must pay attention to their own development, promote the adjustment of industrial structure of enterprises, and accelerate the upgrading and transformation of product structure by strengthening technological research and development and innovation."

In the face of soaring energy prices and pressures such as rising labor costs, *** appreciation, and power shortages, traditional hardware processing companies are experiencing “labor pains” in product upgrades and structural adjustments. Many sellers have frankly stated that rising oil prices are not just the only factor that plagues corporate development.