The scale and existing problems of my country’s building decoration industry
Keywords: construction, scale, decoration
1. The scale and existing problems of my country’s building decoration industry Questions
1. Scale and total volume
According to a survey by the China Architectural Decoration Association, the scale of my country's architectural decoration industry is roughly as follows:
The largest number in the country There are more than 250,000 building decoration companies, of which 20,000 are mainly engaged in building decoration and have qualifications approved by the national construction authorities. They also engage in building decoration such as civil engineering companies, installation companies, gardening companies, etc., and have qualifications approved by the national construction authorities There are 50,000 qualified enterprises with business licenses, but due to their small scale, there are 180,000 enterprises that have not obtained national qualifications. They are mainly engaged in residential decoration and renovation projects. There are more than 8.5 million construction teams in the national building decoration industry, including 500,000 engineering and technical personnel, absorbing nearly 7 million rural surplus laborers. Due to the development of the building decoration industry, more than 5 million people are employed in the production and circulation of building decoration materials. There are about 14 million people in the construction and decoration industry. The national construction and decoration industry has completed an annual project output value of 550 billion yuan and achieved an added value of 170 billion yuan in the construction industry, accounting for about 6.2% of the total domestic production (GDP). According to the country's industrial policy, state-owned assets are gradually withdrawing from the construction and decoration industry. Currently, state-owned enterprises account for less than 1 in the total number of enterprises, and private enterprises and joint ventures account for the vast majority.
2. Main existing problems
Although the construction and decoration industry has made great progress and made outstanding contributions to the national economy and social progress, there are also problems in its development. There are many problems, which can be summed up in the following aspects:
(1) There are too many companies, supply exceeds demand, and market competition is cruel.
Compared with the annual demand for projects, the number of existing enterprises and total project undertaking capacity in my country has exceeded demand. There are still new decoration engineering enterprises being established, and the number of building decoration construction enterprises is still increasing. The serious imbalance between supply and demand makes it more difficult to contract projects. Due to oversupply, it has been extremely difficult for companies to survive, and many companies have been unable to undertake projects for a long time. In the industry, especially among residential decoration companies, a large number of advertisements flood various news media to contract projects, forming an advertising war. The phenomenon of price-cutting competition among companies is very serious. The entire industry has reached the status of a low-profit industry, and some projects have even appeared. Loss due to too low quotation. Enterprises have insufficient tasks to undertake, their ability to generate profits has declined, and the conditions for self-accumulation and self-improvement are poor, which has seriously affected the development of enterprises and industries.
(2) The scale of the enterprise is too small and the ability to resist risks is weak.
Companies in my country's construction and decoration industry are generally small in scale, have poor capital, manpower, and technical strength, and generally lack the ability to undertake projects, making it difficult to withstand market risks. "The specifications, equipment levels and product quality of material production enterprises are far behind international standards, and their market share is generally low. So far, our country has not yet had a flagship enterprise in the construction and decoration industry that has a place in the world, even if it is The annual project undertaking capacity of well-known domestic enterprises and the annual sales of material production enterprises are less than 1 billion yuan. Compared with the annual output value of large international companies with tens of billions of dollars, the gap is hundreds of times, and they are not at the same level at all.
(3) The degree of specialization is low, the competition platform is single, and price competition is the main form.
This is a big problem in my country's construction and decoration industry. What are the common problems among enterprises in the industry? They can all do it, but they can’t do anything well, they’re not very good at what they do, and their level of specialization is very low. The company doesn’t have its own operating characteristics, it doesn’t have its own patented technology, and it can’t form its own core competitiveness, which results in non-level competition among companies in the industry. .
No matter what type of project it is, a large number of companies participate in bidding, but few companies can participate in bidding with their own unique professional standards and specialized design and construction organization plans for the project, resulting in many companies competing on the same platform. The result can only be price competition and non-commercial market operations, which will lead to a decline in the self-accumulation and profit-making capabilities of enterprises, and also affect the standardized development of the market.
(4) Due to the low level of competition in the industry and the non-standardization of the entire market, the level of self-discipline in the industry is poor, mutual derogation and mutual disruption are common, and vicious competition is very common, which has also caused problems in the market. This has caused great damage, causing some owners to take advantage of the chaos in the industry market and the irregular competition within the industry to engage in advance capital and fund-raising projects, and default on project payments, causing difficulties in the capital circulation of construction companies and arrears of workers' wages, forming a deep-rooted problem. Social hazards.
Technological development lags behind, and independent development and promotion capabilities of new materials, new processes, and new technologies are poor.
The technological progress of my country's construction and decoration industry mainly relies on the introduction of foreign technology and is extremely dependent on foreign countries. New materials, new products, new technologies and new processes independently developed and developed by Chinese enterprises Very few, enterprises have little investment in science and technology, and lack of funds and R&D capabilities. Neither construction companies nor material production companies have their own technical reserves, which poses great obstacles to the sustainable development of the industry. Especially in the promotion of new technologies, the market information is not effective and the promotion intensity is insufficient, which affects the quality level of the project to a certain extent, and the enterprise's project profit-making ability is very weak.
Lack of understanding of the international market makes it difficult to adapt to the new situation after joining the WTO.
Due to being accustomed to vertical comparisons for a long time, companies often see development and achievements, but do not pay attention to horizontal comparisons to discover gaps and shortcomings. Faced with the internationalization of my country's construction and decoration industry market after joining the WTO, the industry generally has insufficient understanding of large international companies, insufficient understanding of the international market, unclear understanding of international operating practices and rules, and insufficient preparation for the pressures it faces. , did not put the enterprise in the international market environment for analysis and research, and therefore could not accurately grasp its own position and adjust the enterprise development strategy.
2. The future development trend of my country's construction and decoration industry
my country's construction and decoration industry faces the opportunities and challenges of joining the WTO, which will cause huge changes in the industry. It can be summarized as follows: Several aspects.
(1) The development trend of internationalization and diversification.
As our country’s market integrates with international standards, all parties in the building decoration market have shown a trend of internationalization and diversification. This is an inevitable result after my country’s accession to the WTO. There are 4 performances in the industry. Aspects:
The first is the internationalization and diversification of project owners. Whether it is public buildings or residential decoration projects, more and more investment comes from international capital. This change will accelerate with the improvement of my country's international economic and political status and the increase in exchanges.
The second is the internationalization of design and construction. A large number of international engineering companies have entered the Chinese construction and decoration market, putting pressure on the Chinese market. This change is more manifested in the large number of joint ventures undertaking projects in the market. Nowadays, foreign designs account for a large proportion of the design of large landmark buildings in big cities.
The third is the internationalization of material production. Facing China's huge decorative materials market, a large amount of international capital has invested in building factories in my country to produce new building decoration materials. This part of the material is superior to materials produced by domestic companies in terms of technical quality and environmental quality. Therefore, it has extremely strong competitiveness and market share, and the rapid increase in domestic materials puts great pressure on domestic materials in the domestic market.
The fourth is the internationalization of material marketing. A group of internationally renowned material dealers have landed in my country's decorative materials market. For example, B&Q in the UK and Obed in Germany have already established extensive presence in the Chinese market and carried out business activities.
(2) The development of high technology will trigger technological innovation and technological revolution in the building decoration industry.
With the advancement of social science and technology, new scientific research results will continue to be transformed into building decoration materials, and new construction machines and construction technologies will continue to enter the building decoration industry, making the building decoration industry more advanced in material production. Significant changes have occurred in aspects such as engineering design and construction technology, triggering technological innovation and technological revolution in the building decoration industry. According to the development of the building decoration industry and the requirements of the national sustainable development strategic goals, the content of building decoration will also change. Intelligence, automation, energy saving, etc. will become important contents. Therefore, the safety and energy saving of building decoration projects will be the key breakthrough areas for future technological development. Driven by relevant national regulations and standards, through the efforts of the entire industry, more and newer results will be achieved in technological development, forming the core competitiveness of our country's enterprises with independent intellectual property rights, having a competitive advantage in the architectural decoration technology market, and reducing Dependence on external technology and achieving the industry's sustainable development goals will become an important part of the industry's development in the future.
(3) The development trend of scientific enterprise management and project management.
As my country's construction decoration market integrates with the international market, the management level of our country's enterprises must also continue to improve. The most prominent one is that the management of engineering projects must be connected with international management. Whether it is the bidding and bidding process for project contracting, business negotiations and construction organization during project construction, or the completion acceptance and post-service of the project, all must be carried out in accordance with international engineering project operation practices. There is a lot of knowledge and practical work procedures that our country’s construction and decoration enterprises have not yet come into contact with. Since projects are the carrier of enterprise management level and profit creation, these changes will force Chinese enterprises to change the status quo of enterprise management and project management, and revolutionize enterprise management through internationally accepted certification methods to improve management levels and enhance project profit creation. Ability, this will also become a very important content for the future development of the industry.
(4) Pay attention to the development trend of environmental protection and health.
With the global emphasis on ecology and environmental protection, Chinese society has continued to attach greater importance to environmental protection and health. As a key industry in environmental protection transformation, the construction and decoration industry has undergone great changes in recent years. It has made great achievements in both legal construction and market management, but there is still a certain gap between it and developed countries. As my country's social environmental awareness strengthens and people pay more attention to nature, market access will become more and more stringent in the future and will be closer to the international advanced level. This requires enterprises to improve decoration engineering design, material production and construction organization. In the process, we will comprehensively establish environmental awareness and increase investment in environmental protection transformation. Only by comprehensively improving the environmental protection level of my country's construction and decoration industry can we gain a firm foothold and achieve development in the future market.
(5) The trend of further segmentation of the market.
Further segmentation of the market is the inevitable result of specialization. To change the situation of a narrow competition platform in our country's market, we must take the path of professional division of labor, so that enterprises can become specialized, top-notch, and refined in professional fields, and gradually form management and market operations with unique operating characteristics in each market segment. The mode of operation forms a famous brand in each market. At present, the workwear market and the residential decoration market have been very clearly distinguished. In the future, in the workwear market, there will also be decoration engineering companies in market segments such as medical institutions, hotels, restaurants, office buildings, commercial facilities, and transportation facilities. Only in the degree of specialization Only under the conditions of continuous improvement can enterprises conduct deep and thorough research in professional fields and continuously create new technical and economic achievements. Only by continuously improving the quality of market segments can the overall level of my country's building decoration industry be improved.
(6) Alliances and reorganization trends among enterprises.
To change the current situation of weak competitiveness of Chinese enterprises, it is necessary to carry out alliances and reorganizations among enterprises to optimize the allocation of resources and form regional and even national industry flagship enterprises to truly become bigger and bigger. Be stronger, have the brand and advantages of the enterprise, be able to withstand international competition, and occupy a place in the domestic and international markets.
In the process of enterprise combination and reorganization, it will inevitably be accompanied by changes in enterprise systems and mechanisms. In accordance with the requirements of modern enterprise systems, a management model that meets the requirements of the international market and can promote the survival and development of enterprises must be established. These also test the knowledge level, professionalism level, moral level and management level of entrepreneurs in the current industry.