Now, whenever we see large trucks loaded with company products driving out of the factory gate, Shen Mingqiang, the general manager of Cixi Donghai Color Printing and Packaging Co., Ltd., feels heartbroken. "Since the beginning of this year, the raw materials used to produce printing and packaging products have increased significantly, resulting in a cost increase of 20000 yuan for a vehicle of products." Shen Mingqiang helplessly told reporters, "The industry's profits were already very thin, and if they increase so much, they will definitely lose money.". In the industrial economic chain of our city, the printing and packaging industry is the last link, playing the role of "supporting role". For a long time, printing and packaging enterprises have been constrained by downstream enterprises everywhere, and have recently been hit by the rise in raw material prices. The industry's development has encountered unprecedented challenges, and more than 400 production enterprises in the city are struggling. The annual sales of the "supporting role" industry reached 3 billion yuan. In recent years, the city's household appliances, chemical fiber, bearings and other industries have developed rapidly. As a derivative industry of these local leading industries, the printing and packaging industry has also developed rapidly. At present, the annual sales volume exceeds 3 billion yuan, which is larger than the size of leading industries such as auto parts. Based on the year 2000, the development of the printing and packaging industry in our city can be divided into two stages. Before 2000, it was the initial stage of industry development. At that time, the industrial economy of Cixi had begun to take shape, and some enterprises had embarked on a path of rapid development because any product needed printing and packaging materials. The printing and packaging industry was optimistic, and some visionary operators saw business opportunities and entered this industry first, with considerable benefits. In 1998, Shen Mingqiang, who was engaged in sealing materials, transferred to printing and packaging products with a capital of 2 million yuan. The annual revenue was only about 5 million yuan, but the profit created would not be less than the current annual sales of nearly 100 million yuan. After entering the year 2000, the scale of enterprises in industries such as Cixi home appliances has rapidly expanded, especially with the rapid growth of export products. As a result, the scale of enterprises in industries such as Cixi home appliances has rapidly expanded, especially with the rapid growth of export products, which has brought huge market demand for printing and packaging products. The industry has entered a period of rapid development, and some large-scale enterprises have purchased Heidelberg four color printing machines in Germany. The city has nearly 30 automatic production lines for printing and corrugated paper packaging. According to the statistics of the Municipal Printing and Packaging Industry Association, there are currently more than 200 enterprises in the city with a factory area of over 600 square meters and a registered capital of over 2 million yuan, with an annual output value of over 2.5 billion yuan. There are nearly 200 small-scale enterprises. In addition, there are more than 100 business card and typing and copying shops in the city, with a total industry of over 500 and annual sales exceeding 4 billion yuan. Except for business card and typing and copying stores, which have been less affected by the recent increase in raw material prices, more than 400 other enterprises are currently generally in a loss making state. The rise in raw material prices has triggered an industry crisis. Jin Chuangen, the president of the Printing and Packaging Industry Association, believes that the direct cause of this industry crisis is the rise in raw material prices. However, behind this crisis, it has also exposed deep-seated problems such as severe disorderly competition in the industry itself and excessive constraints from upstream industries. Since the beginning of this year, the prices of raw and auxiliary materials such as cardboard packaging have skyrocketed, especially with prices of various types of paper increasing by more than 20%, resulting in a price increase
