Copper prices from 18,000 yuan early last year, Meng jumped to 40,000 this year, the domestic manufacturing industry is facing a great challenge. Raw material costs skyrocketing, workers wages rise, resulting in many domestic enterprises difficult. In fact, in the raw material prices, rising labor costs and the international economic environment, multiple squeeze, sustained and rapid growth of the Chinese economy is slowing down the growth rate, the first to feel this situation is in China "economic growth engine "," Made in China base, "said the Yangtze River Delta and the Pearl River Delta.

This year, the company's water, electricity, rent, raw materials, transportation and other operating costs are rising, and the product sales price is indeed difficult to improve, resulting in corporate profit margins continue to compress. n fact, the turns of raw material prices to downstream processing and manufacturing industry to bring huge cost pressures. In the price transmission mechanism under the effect of raw material prices effect is the spread of the raw materials associated industries. The wire and cable industry, for example, as the main production of wire and cable copper and PVC prices rose the most obvious, coupled with rent, wages and other factors, the final cost of wire and cable increased by about three percent, greatly reducing the profit margins of the enterprise . At the same time, manufacturers compete with each other down the price, did not dare to mention the word price, more out of the cost can only carry their own, the basic maintenance of the normal operation of enterprises.