How to understand the overcapacity in the coatings industry

China Coatings Network
: In recent years, with the rapid development of China's real estate industry and manufacturing industry, for the
coatings
industry has created a lot of room for development. In a short period of thirty years, China's paint industry from nothing to now become the world's largest paint production and consumer countries, its development rate has never been the last. However, with the slowdown in domestic macroeconomic growth, since 2014, the domestic real estate industry investment growth rate has declined, greatly reducing the demand for paint products, resulting in domestic paint overcapacity,
coating enterprises
profit margins decreased. For paint enterprises, overcapacity seriously affects the development of enterprises and industries, paint enterprises almost reached the "excess" color change situation in fact, paint enterprises do not have to talk about "excess" and color change, many people on the domestic paint industry overcapacity understanding still has a certain misunderstanding. Let's take a look at overcapacity in the paint industry.
"surplus" refers to the production unit produced more products than market demand and "residual" goods. In fact, the concept is very vague, did not give a more scientific, can withstand the market to work out the definition. For example, beyond the market demand is more or less "surplus", inventory for how long did not sell to calculate "surplus"? Many goods after 3-5 years of shelving suddenly became the market darling, become a buyer's sought-after goods, these are not counted as "surplus", due to the sudden change in the international trade situation, the original best-selling products by the international political and policy squeeze temporarily no market, is also classified as "surplus" series? Therefore, for the "surplus" countries have their own special background and reasons, can not be generally discussed.
For the paint industry, overcapacity is not all paint overcapacity, from the current development of the paint industry, overcapacity is medium and low-end paint products, and like
powder coatings
, water-based environmental protection coatings market is not overcapacity. And like the water-based metal industry paint market production is relatively small, its production enterprises in the country is also a few, so this can not be counted as overcapacity, so we discuss the paint industry overcapacity must be considered from a number of aspects.
the development of the paint industry for economic development is more than ever, but also an indispensable role in economic development, the key is how we control this "degree." We can neither allow the paint industry to "overcapacity" disorderly development and expansion, nor allow it to take up too much resources and productivity, "excess" also put in the cage supervision, is an effective method. Rational, orderly and timely use of the potential of "excess" should be the focus of national policy.
And in the current paint industry, troubled by the development of the paint industry "cage" is environmental protection, in the past two years, the country has issued a series of environmental protection policies on the paint industry, such as: paint consumption tax, which makes solvent-based paint enterprises very uncomfortable. Throughout the current development of the domestic coatings industry, we will find that the current domestic coatings industry to small and medium-sized paint enterprises, and these coatings enterprises in technology research and development and new product research and development investment is relatively small, its coating products are mainly in the low-end. Global
Coatings Network
believes that the paint industry to resolve low-end overcapacity, first of all, to cultivate a large number of medium-sized paint enterprises, these coating enterprises in technology research and development and new product research and development to increase support efforts to help these medium-sized coatings enterprises to enhance their own technical research and development strength, and gradually enter the ranks of high-end paint product research and development, and finally complete the transition from low-end to high-end products.
Although the current domestic low-end paint products in the situation of overcapacity, but we can fully take advantage of the "Belt and Road" a good time to achieve capacity output, the excess part of the paint products exported abroad, so that on the one hand can alleviate the situation of overcapacity in the domestic paint market, on the other hand, can also improve the profit margins of coating enterprises, accelerate the pace of internationalization of the domestic paint industry.
From the long-term development of the paint industry, we do not have to talk about "excess" and color change, overcapacity is not very terrible, as long as we make good use of this part of the remaining capacity can still improve the performance of paint enterprises, improve the output value of the paint industry.