Wood industry profit decline strategy acquisition trend

Sales growth benefited from policy stimulus It is understood that this year's wood industry is expected to exceed 100 billion in output value. Looking at the development of the industry, this year's wooden door industry has grown significantly from last year's output value and scale.

“The growth of sales revenue has certain policy factors. Under the stimulus of the policy, the increase in social demand is ultimately reflected in the increase in the total income of the company.” Another responsible person of a wooden product stated that the increase in income is due to the fact that the company is in the process of business operations. Actively reduce profit margins and seek greater trading volume.

Rising prices, compression margins, profit decline in the wood industry, and the trend of mergers and acquisitions, said: “The increase in prices is one of the main reasons for the decline in the profit of the wood industry. Due to the continuous rise in the price of wood, coupled with the increase in labor costs and freight rates, Greatly reduced profits."

In this regard, Jiahe Jiatai responsible person analyzed that investment-pull economic structure has not been fundamentally improved, while rising prices and consumer confidence have been hit, and wooden door companies generally decline in their expectations of future expectations.

Strategic mergers and acquisitions or important trends Facing rising prices and increasing corporate costs, retailers will face difficulties if they cannot reduce the cost pressures brought about by competition in the industry. The person in charge of a door company stated that the concentration of wood doors in our country is low, and enterprises can achieve the goal of becoming bigger and stronger through effective merger and acquisition integration. Reducing the cost of competition within the industry and within the region will reduce the cost of procurement, and at the same time, it will also increase the ability of the company to resist risks.