Leading Fishing Tackle OEM Manufacturer in China

Inflation is the reality in China. While the whole world is in economic recession, China is facing the problem of inflation and this situation is rapidly getting out of control. For fishing tackle trade, we had witnessed a increase of 30% in year 2011 and the situation could get worse in year 2012. Actually the whole issue of inflation has been burning topic for Chinese Fishing Tackle Manufacturer this and last years.

Initially, it was only a shortage of some commodities like steel, cotton, etc Most manufactures are in full run because the domestic market is very active ( though the whole world is in recession ). For example, the price of cotton had doubled in year 2011. As a result products like fishing cloth and fishing luggage are very attacked by this price increase.

People believe that fishing tackle prices will increase by 20% or 30% again in year 2012 because all raw materials and labor costs have increased thanks to the inflation. But someone also regard this as an opportunity for Chinese fishing tackle manufacturers. Some factories producing low value products will be squeezed out, while others will shift to make high value products and survive. And at the same time, some low-end products will be shifted to other countries like Vietnam and Bengal. High value products will not go there at least for now because high quality raw material and techniques are also required. These countries are just not ready for these conditions now.

Reasons caused inflation:

1, Currency ( Chinese RMB ) appreciation

2, Over investment by the Government

3, Increase in the wages

4, Labor shortage