A majority of China’s pet product manufacturers (67 percent) plan to raise export prices in 2007 to compensate for increasing material costs, according a new report by Global Sources (Hong Kong).

“As prices of wood, metal, leather and fabrics continue to climb, manufacturers are finding it more difficult to absorb higher costs,” said Michael Kleist, general manager of content development for Global Sources. “The price of wood, for instance, has increased about 40 percent since 2004, and manufacturers estimate a further 10 percent to 20 percent rise in 2007.”

Of the Chinese manufacturers surveyed, 35 percent cited higher raw material costs as a top concern for 2007. Other challenges included price competition (35 percent), design copying/piracy (18 percent) and power and labor shortages (12 percent).

According to the Global Sources report, the country’s manufacturers are looking at ways to enhance production and export capabilities.

“More than half of interviewed manufacturers plan to improve their production/export capabilities by obtaining international certifications or educating staff,” Kleist said. “A number of companies are planning to apply for ISO approval, and some are even attempting to comply with the SA8000 system, the first global ethical labor standard.”

Among surveyed manufacturers, 26 percent plan to obtain certifications/approvals, 26 percent plan to focus on staff training, 23 percent plan to shorten design/development time, 14 percent plan to develop wider product lines, and 11 percent plan to shorten delivery times.