Challenges Faced by PVC Flooring Industry Under the COVID-19
In 2021, although affected by COVID-19, the export demand of the PVC flooring industry still increased. Compared with the customs data in 2020, it shows that the export amount of PVC flooring from January to June 2021 is 2,651,200 tons, an increase of 557,100 tons from 2,094,100 tons in the same period in 2020, an increase of 26.60%. Many industry insiders believe that even if we can effectively contain the epidemic and overcome it, the rapid expansion will continue in the next 2-3 years.
Opportunity comes with a challenge, here we list three problems that we are facing:
1. The rising cost of primary materials:
PVC resin is the main material of PVC flooring. It generally accounts for about 10% of the cost of PVC flooring, but its price is rising very fast. Since 2020, the price of raw materials has increased by about 80%.
2. A record-high shipping cost and frequent shipping delay:
Affected by the COVID-19, the shipping cost has hit a record high from 2020 to the first two quarters of 2021. It is nearly 20,000 dollars, ten times than before. According to the recent price adjustments of some shipping companies, a new round of freight price increases is brewing. This crazy situation in the international logistics industry puts a lot of pressure on many enterprises.
3. Technology and patent issues:
PVC flooring requires higher technology for patent research and development as new material. European and American companies have been developing in this field for decades, and they have more advantages in technology than China. However, due to the cost advantages of developing countries, many international giants build production bases in China or purchase OEM and ODM products directly. This production model has made Chinese PVC flooring companies put quantity first, pay little attention to own brands registration and technology research. Sales volume is greatly affected by the order volume of a single major customer. In 2019, Walrus New Material Co Ltd. was involved in a US patent litigation case that deserves our deep consideration.
Even if facing these Challenging problems, Titan Vinyl insists on quality, Environmental friendly, and customers first. We believe that we can overcome the difficulties together.