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PCB007-Aug2021

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50 PCB007 MAGAZINE I AUGUST 2021 will continue to increase prices at the retail (OEM) level. Figure 3 indicates a major concern because it means that even though it appears the shop ef- ficiencies (capacity) are increasing and the raw material prices seem to be stabilizing (and in some instances dropping), there will be con- tinued pressure on retail prices to offset the margin loss. What Can the End User Do About This Situation? Start with the assumption that none of us can impact the following: • Raw material prices • Factory efficiency • U.S. inflation • Margin pressure on public companies Figure 3: The net margin percentage evolution gathered from nine public Chinese PCB factories.

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