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Why is productivity increase important?
Time:2020/6/28   Hits:4714 

Obviously, a 50% increase in injection molding machine production capacity does not mean a 50% increase in profits, so why is it so important for the injection molding machine industry to increase production capacity?

Profit is like a steelyard, one end maintains the market, and the other end maintains the cost. For the injection molding machine industry, costs include rent, water and electricity, workers' wages, and material costs. Among them, rent and worker wages account for the bulk of the total cost. Therefore, increasing the unit output of the machine can minimize the rent and worker wages allocated to each product. Calculated in this way, the extra money earned every month will be Very impressive.
More importantly, we must have explosive thinking when making plastic products. What is explosive thinking? That is to say, the products of a factory must have a clear distinction between running products and profitable products. The main function of running volume products is to distribute goods. The purpose of distribution is to let a market recognize your brand and value. Products that run volume will not pursue how high the profit margin is, just focus on whether the volume is large enough.
Behind the running products are profitable products. The sales of running products and driving the sales of profitable products can be more accepted by the market.
If the cost of a product is 3 yuan, if you can make 1 yuan, then the extra 2 yuan is a real profit. For products that run in volume, the extra profit is greater market space and a broader future.
Therefore, as far as the injection molding machine industry is concerned, an increase in production capacity is equivalent to an increase in profits, so it is particularly important.
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