HONG KONG — Sixty-five percent of China's sink and basin manufacturers plan to raise export prices in 2007, according to Global Sources' " Sourcing Report: Sinks & Basins."

"Higher raw material costs and price competition are forcing manufacturers to enhance design capabilities and other competencies to achieve sustainable advantages," said Michael Kleist, Global Sources' general manager of content development. "This is a big step, especially for those companies that have previously competed mainly on price."

Among manufacturers' primary challenges for the next 12 months: 37% cite higher raw material costs; 33% cite price competition; 19% cite design copying/piracy; 9% cite labor shortages; and 2% cite stricter overseas standards.

"Because of the industry's labor-intensive nature, product quality and the delivery of services depend heavily on the knowledge and skills of a company's workforce," Kleist said. "Recognizing this, many Greater China suppliers are investing in worker training and retention."

Among the surveyed manufacturers' plans to improve capabilities in the next 12 months: 52% plan to focus on staff training; 25% expect to develop wider product lines; 14% plan to shorten design/development time; 5% plan to shorten delivery times; and 4% expect to focus on obtaining approvals and certifications.

The 134-page report provides proprietary market information from inperson factory visits to 17 manufacturers and interviews with 70 more suppliers. China Sourcing Reports (www.chinasourcingreports.com) are part of Global Sources' sourcing and product information services. Additional information is available at www.corporate.globalsources.com. "China Sourcing Report: Sinks & Basins" is available at www.chinasourcingreports.com/SinksBasins. Information about Greater China sink and basin suppliers and products can be found at www.globalsources.com/manufacturers/Sink.html.

Global Sources is a business-to-business media company and a primary facilitator of two-way trade with China, using a range of English-language media. The company has been facilitating global trade for 36 years.