Raw material prices fluctuate more and more. How do PCB companies cope with cost pressure?

Recently, affected by the international situation and the epidemic, the price fluctuations of the main raw materials of PCB have intensified, which has brought huge cost pressure to PCB companies. How to effectively cope with cost pressure has become a major challenge facing PCB companies.

Raw material price fluctuations: copper foil, epoxy resin and other prices have risen sharply

The main raw materials of PCB include copper foil, epoxy resin, glass fiber cloth, etc. Recently, affected by factors such as rising international copper prices and supply chain disruptions caused by the epidemic, the prices of these raw materials have risen sharply. According to statistics, in the first half of 2023, the price of copper foil rose by more than 30% year-on-year, and the price of epoxy resin rose by more than 20% year-on-year.

Cost pressure: corporate profit margins are compressed

The rise in raw material prices has directly led to an increase in PCB production costs. However, due to fierce market competition, it is difficult for PCB companies to completely pass on cost pressure to downstream customers. As a result, the profit margins of companies have been greatly compressed, and some small and medium-sized enterprises even face the risk of losses.

Coping strategies: Diversified procurement and cost control in parallel

Faced with the cost pressure brought about by fluctuations in raw material prices, PCB companies need to adopt active coping strategies. On the one hand, the cost of raw material procurement can be reduced by diversifying procurement and establishing long-term cooperative relationships with suppliers. On the other hand, production costs can be reduced by strengthening internal management, improving production efficiency, and optimizing product structure.

Conclusion:

With the intensification of raw material price fluctuations, PCB companies are facing huge cost pressure. PCB companies need to actively respond to challenges and take effective cost control measures to maintain their competitiveness in the fierce market competition.