COVID-19 has had a major impact on the world economy. The pandemic caused very strict economic destruction to all countries in the world. The virus has forced businesses around the globe to slow down more than before. On the contrary, the wood plastic composite industry keeps growing even in the Pandemic situation.
WPC (wood plastic composites) as a young generation of composites are widely used both in commercial and residential. The advantages are the availability and high performance like weather resistance, anti-slip, durability, low maintenance, etc.
According to the latest study, the growth of Wood Plastic Composite (WPC) Floorings from 2019-2021 has a significant change. WPC Field is a promising industry because of its green concept and actual eco-friendly composition which is recognized by consumers around the whole world. With the development of time, human beings realize it's time to slow down and pay more attention to the environment. WPC composite products are coordinated with the trend and choose them as an alternative to pursue a green living world.
Why are WPC products so Popular?
WPC product has been increasingly used as a substitute for real timber in the European, US and Asia market. Wood plastic composite products are becoming popular due to their characteristics of durability and strength, which resemble the qualities of real wood while providing an equally sustainable alternative. European and US market offers great opportunities to exporters from China and it is recommended that they focus on competitive prices, good quality and sustainability certifications. These factors prompt the market growth of this global industry in the years to come.
The Cost of Raw Materials is Increasing
With the strong demand for outdoor composite decking and the influence of COVID-19, the price of raw materials is increasing and WPC manufacturers are facing large challenges in the supply chains. The high demand causes a shortage of raw materials. Especially the increasing cost of plastic makes the whole cost of wpc products higher than before. So please kindly understand if your supplier rise the price, they are not to make more profit, as they can cover the rising part raw material cost. After the pandemic situation, almost every industry's raw material price has gone up and hope it will go back to normal soon.
Shipping Cost Rise Sharply
Except for the raw material, we all know that Shipping costs have risen sharply. Since the autumn of 2020, the soaring demand, a shortage of containers, saturated ports and too few ships and workers — have contributed to the squeeze on transportation capacity. Problems that had built up from the beginning of the pandemic have included imbalances in the production and demand for goods, with countries locking down and opening up at different times, as well as shipping companies cutting the capacity on major routes and shortages of empty containers. As the recovery has progressed, global demand has recovered strongly, especially in international trade.
What should we do in the condition of the high demand for wpc composite decking and cladding, but the raw material and shipping cost keep increasing?
1. It's better to have a schedule to place orders in advance, to try our best to keep the cost under control and make it competitive in the market.
2. The market demand for wpc composite products is there, what we need to do is to keep the quality and provide excellent customer service.
3. Bring new products to market makes you more competitive than other wholesalers. Wallong is an expert in innovation and good quality, and importing our exclusive products will help you expand the market.
Please contact our sales team if you need anything details, thanks