It is highly probable that the price of carbon fiber bicycle parts will increase by 10% in 2023.
In 2022, the Chinese Yuan will depreciate by more than 10%. The depreciation trend remains unchanged in 2023. Carbon fiber raw materials are mainly imported through Japan and Taiwan. This means that Chinese factories need to pay higher procurement costs
Labor costs will rise further. Under the background of a low birth rate and aging population.COVID-19 further reduces labor mobility. This will lead to labor shortages and rising labor costs in factories along China's southeast coast next year.
Energy prices rise. The production of carbon fiber products requires a lot of electricity. In 2022, there is already a shortage of electricity supply in China. Coal for thermal power plants is mainly imported. Therefore, the inability to solve the power supply in a short period of time will inevitably lead to further price increases.
My suggestion is to book the order for next year in advance and lock the product price for a period of time.