Scale development of domestic pallet manufacturing enterprises

In 2006, in the Chinese pallet market, domestic pallet manufacturing enterprises developed towards scale and gradually began to attach importance to the development and utilization of new technologies, materials, and processes. At the same time, some large and medium-sized pallet manufacturing enterprises abroad have also intensified their factory construction and strategic layout in China. Some internationally renowned pallet utility system companies and pallet rental companies have also started strategic layout and early business development in key cities in China. At the same time, the China Pallet Public System, led by the Pallet Professional Committee of the China Federation of Logistics and Procurement, has also begun preparatory work in full swing. It is expected to commence substantive business operations in the first half of 2007. Wooden pallets still dominate the Chinese pallet market in 2006, maintaining the overall trend of the previous year. Wooden pallets still dominate the market share, while pallets made of other materials occupy a secondary position. However, the entire wooden pallet production enterprise is facing a serious problem, which is the source of raw materials and the significant increase in raw material prices. Taking into account the situation of various large and medium-sized wooden pallet enterprises, the vast majority of them generally feel that the market demand is high, but the supply of raw materials cannot keep up, which affects the stable development of the enterprise. In response to this situation, various large and medium-sized enterprises are gradually transforming their business methods. Starting to systematically abandon a portion of the low-end market and instead vigorously develop the mid to high end market. At the same time, some enterprises have begun to shift their production goals towards new product development, such as products with relatively high added value such as pallet boxes. This year, wooden pallet companies will maintain the production pattern of last year. The price of wood raw materials is expected to keep rising in 2006, so all wood pallet manufacturers should make more efforts in terms of product added value and product differentiation. Some large and medium-sized enterprises will also further expand differentiated services and stagger the disorderly competition in the market. Plastic pallets continue to grow at a high rate in 2006. According to statistical data from the Pallet Professional Committee of the China Federation of Logistics and Procurement, China's pallets are increasing at a rate of no less than 20 million units per year, with plastic pallets accounting for about 8%. In 2006, a new process for plastic pallets driven by the tobacco and pharmaceutical industries - the built-in steel insert technology for plastic pallets - was widely adopted in the entire plastic pallet manufacturing enterprise. As a result, it has driven the upgrading and major technological innovation of the entire industry's products. In recent years, the average renewal rate and growth rate of plastic pallets have been maintained at around 20%, with the number of plastic pallets used in petrochemical, tobacco, food, pharmaceutical, and transportation industries doubling. In terms of the current production capacity of plastic pallets in China, it will take 5-10 years to basically achieve a balance between supply and demand. Therefore, plastic pallets are in a period of rapid growth in China. 2007 will be a year of rapid development for plastic pallets. Protecting the environment, replacing wood with plastic, and the development of domestic and international logistics industry have provided a huge market and business opportunity for the development of plastic pallets. With the development of technology, the raw materials and processes used in the production of plastic pallets will also develop accordingly. Due to the increasing recognition of the advantages of plastic pallets in terms of usage and performance by users, replacing wooden pallets with plastic pallets as the leading logistics product has become an inevitable trend for future development. Although the market demand for plastic pallets is high, the high prices of raw materials are also a serious problem that plastic pallet manufacturing enterprises have to face. The most likely phenomenon to occur in 2007 is that enterprises are producing at full capacity, but the growth of profits is not proportional. Due to the huge demand market in China, at least four foreign-funded plastic tray manufacturing companies will begin market development in 2007. At the same time, several large domestic enterprises, especially petrochemical enterprises, are preparing to enter the plastic tray manufacturing industry with a high profile. It can be foreseen that the competition in the plastic tray market in 2007 will become more intense, and there is a possibility of market segmentation and reshuffle. Steel pallets have become a highlight of the market. The growth of metal material pallets in 2006 can be called a highlight of the pallet market, especially metal pallets with upper structures that have become a key growth point for metal pallets. At present, steel pallets are the most commonly used in the automotive industry, followed by the dairy industry and some paper industries. The overall characteristic of steel pallets in 2006 is that the market is gradually expanding and demand is gradually increasing. At the same time, personalized pallet demand, especially the special design for a single product, is the focus of market demand. Based on market feedback, the demand for universal steel flat pallets is also gradually increasing.

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