How Abrasives Manufacturers Deal With Cost Reduction?

"Cost reduction" is one of the five tasks determined by the Central Economic Working Conference on supply-side structural reform. To implement the spirit of the State Council Executive Meeting, many provinces have issued the policy of "Cost reduction".

Abrasives manufacturers need to consider how to deal with the cost reduction. In addition to the country's burden-reduction policy, economic support, abrasives manufacturers also need to reduce labor costs, transformation, innovation, etc.

Recently, the State Council has issued a report which points out that after one and two years’ efforts, reducing the cost of real economy enterprises has achieved initial results. It is expected to reduce the comprehensive cost reasonably and increase the profitability after three years or so. But the State Council also expresses that the cost reduction objects need to be defined and the backward production capacity companies should not be included.

The objects of cost reduction measures need to be different. The State Council mainly supports those who have the potential but influenced by the current economic cycle, and have to suffer a temporary difficulties. But for excess and backward production capacity companies, it will firmly repel and does not make them continue the production and business operation through the cost reduction.