Leading knife manufacturer orders are full. Industry insiders expect that in Q2 this year, capacity utilization and net profit margins will remain high.

Ask AI: How do the inventory strategies of leading manufacturers support Q2 high capacity utilization?

[With leading cutting tool manufacturers’ orders fully booked, industry chain insiders expect this year’s Q2 capacity utilization rate and net profit margin to remain at high levels] Caixin News March 30, Caixin News reporter learned from multiple industry chain insiders that the CNC insert industry currently has strong supply and demand. In Q1 this year, leading manufacturers’ CNC insert capacity utilization rate has increased significantly compared with the same period last year, and order cycles for different product categories are about 2–3 months. Driven by a rise in both volume and price, product net profit margin year over year has improved. A related executive from a leading cutting tool manufacturer told Caixin News reporter that the boosting effect on net profit margin from earlier product price increases is greater than the contribution from expanded volume. Relying on earlier inventory reserves of raw materials and finished goods, it is expected that in Q2 this year capacity utilization and net profit margin will still remain at high levels. (Caixin News reporter Huang Lu)