Paint enterprises should not blindly expand production and construction lines

China Coatings Network
News: 11th and 12th Five-Year News, in the domestic real estate industry and the rapid development of the manufacturing industry, driven by the development of the domestic
coatings
industry has created a lot of room for development, many small
coating enterprises
has gradually grown into a well-known domestic paint enterprises. In the joint efforts of major paint enterprises, China in 2009 on the global paint production and consumption of large countries, the development of the domestic paint industry can be said to be booming.
however, since entering the late 12th Five-Year Period, especially in 2014, the domestic economic environment gradually entered the new normal, the real estate industry continued to be depressed under the circumstances, to the development of the domestic paint industry has caused a great impact. According to the conventional thinking logic, in this market prospect is not ideal situation, domestic paint enterprises should rest and recuperate, through internal training and other means to improve the soft power of enterprises, improve the service capacity of enterprises, for enterprises in the market competition to establish core competitiveness. However, see is not so, it is understood that the current domestic paint enterprises do not rest and recuperate, but a large-scale expansion of the plant, increase production capacity, the following table is for us to organize part of the 2014 expansion of the paint project.
Through the table above, we can see that in 2014 China's paint industry expansion project production capacity of at least 1.1158 million tons, January-November domestic paint production reached 14.7 million tons, then so much paint production can be digested by the current market, if not digested paint enterprises will face how the development dilemma.
coating products have no sales radius limit, which provides a lot of room for the development of coating enterprises, but also for coating enterprises to expand to create a profit conditions. But many paint enterprises before the expansion did not and the national paint market demand analysis and inspection, not to mention their own paint products in the market share of the space for a reasonable assessment, some enterprises see other paint enterprises expansion, they will follow the expansion, afraid of other people's production capacity than their own capacity, without considering how much demand in the market. The development of coating enterprises is determined by market demand, not who has the greater the capacity and the stronger the strength of who. This kind of blind construction will not only cause overcapacity in the paint industry, but also cause great waste of resources.
It is understood that in 2014 China's economic growth rate into the normal, that is, about 7%, the real estate industry investment efforts, commercial housing sales area and sales have seen a sharp decline, which greatly reduced the domestic
built coatings
demand, and it is understood that in 2014 car sales and production are declining trend, which will inevitably reduce the demand for
industrial coatings
products. Therefore, it is believed that in 2014 the domestic paint industry market demand growth rate will be reduced.
Looking at the development trend of the domestic paint industry in 2015, the development of the paint industry by the real estate industry and industrial manufacturing industry, at the meeting of the Political Bureau of the Central Committee held in December, the tone of the domestic economic development in 2015 as a translational development, that is to say, investment in the real estate industry in 2015 will continue to decline, slow down the situation of overcapacity in the real estate industry, mainly to digest domestic demand, so that the demand for the construction paint industry will be further reduced, although there is a limited degree of urban construction. Look at industrial development, take the automotive industry as an example, with the national environmental protection policy more and more stringent, many cities are limiting, on the one hand to ease traffic pressure, on the other hand to ease pollution pressure, therefore, domestic car sales and production volume have declined relatively, which will reduce the
automotive coatings
demand. Therefore, the development prospects of the domestic paint industry in 2015 are not very optimistic.
in the market environment is not optimistic prospects, domestic paint enterprises are still blindly expanding capacity, will eventually lead to serious overcapacity in the paint industry, resulting in serious waste of resources. In this case, the development space of domestic paint enterprises will also be greatly limited, coupled with more and more stringent environmental protection policies, indirectly increased the operating costs of paint enterprises. The market demand is reduced, the production cost of enterprises increases, the development of paint enterprises, it can be imagined. In this case, the domestic paint industry is bound to carry out mergers and reorganization, resource integration, which will eliminate a large number of paint enterprises.
so the paint industry can avoid this tragedy? The answer is yes. Paint enterprises want to avoid this development tragedy, first of all, resolutely put an end to blind expansion of production lines, which will reduce the appearance of overcapacity in the paint industry, conducive to the healthy development of the paint industry. Second, to enhance the soft power of enterprises, in the current paint industry, there are thousands of paint enterprises, product quality and performance difference is not much, and the biggest difference is the service, many enterprises in the signing of contracts or purchase, to the user promised a lot of service content, but when the cooperation, the previous commitment of service content is difficult to become a reality, in 2014, there are 33 paint enterprises included in the list of unreliable enterprises, which paint is the development of the enterprise is harmful and no profit, but also to the development of the entire industry.