01/09/17 07:32AM
margins of wood flooring business
Therefore, raw material resource shortages in recent years, wood flooring prices continued to rise the main reason.But some time ago Myanmar sealed off policy, the lack of timber resources status "She also said that the main raw material for laminate flooring is the substrate, the substrate is generally provided by the fast-growing forest, the current natural resources in China is not only tight, fast-growing forest resources are relatively scarce, raw material supply shortage caused Strengthen the wooden floor prices.
Yang Meixin said, due to rising costs, the current profit margins of wood flooring business narrowed, prompting enterprises to continue to integrate reorganization, a number of weaker small businesses gradually acquired by large enterprises. She analyzed, due to rising costs, small business capital chain easily broken, especially solid wood flooring business, investment threshold is relatively low,
but the requirements of the working capital is relatively high. Because solid wood flooring at least 10 days after the drying period in order to achieve the required moisture content, and drying time is the backlog of funds, there is no strong financial strength to support, it is easy to be dragged down. She cited an example to the reporter, Zhejiang Nanxun flooring enterprises are more concentrated, thriving three or four hundred,
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