The housing market downturn dragged down building materials and other related industries some enterprises showed losses

China Paint Network
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ntcolor, '#0000FF'> Shanxi Provincial Bureau of Statistics released data on the 29th, the first quarter of Shanxi Province real estate market continued to be depressed, commercial housing transactions and land turnover both fell by more than 20%. This is a commercial house on the west bank of the Weihe River in Taiyuan City, Shanxi Province. Reporter Zhan Yan photo reporter in Jiangsu, Shandong, Guangdong and other places to study learned that the real estate market recession in the past two years dragged down the construction, building materials, decoration, property and other related industries, resulting in these industries, the decline in corporate efficiency or even losses, the industry shuffle accelerated. However, under market pressure, related industry enterprises are actively brewing transformation and upgrading. Entrepreneurs believe that the real estate industry transformation related industries should be the first, the success or failure of the transformation of related industries determines the success or failure of the real estate industry transformation. Relevant departments should maintain a good market environment, let go of the survival of the fittest enterprises, in promoting the industrialization of the industry, greening, service to guide. Real estate related industry decline obviously "in previous years we have a million yuan project only two or three construction enterprises to bid, last year a project on average about 20 enterprises to compete, but even if robbed is also a problem, because a project's profit has fallen to 100,000 yuan. A real estate company head from a construction supervisor who has worked in the industry for more than 20 years told reporters that she was worried about the current slump in the construction industry. She believes China's construction sector is facing another crisis, dragged down by a downturn in the real estate sector and overcapacity in the sector. Nanjing Andermen migrant workers labor market, with an annual flow of more than one million, is one of the main migrant workers' distribution centers in East China. The relevant person in charge of the market said that every year from January to March is the peak season for construction recruitment, but since last year very few construction enterprises to recruit, construction supervision, architectural design and other jobs demand has also been reduced by more than 80%. Tens of thousands of migrant workers in the construction industry are seeking jobs in other industries because construction companies are in serious arrears. Jiangsu Zhongnan Construction Group has more than 30,000 construction workers, is the country's largest number of self-employed private construction enterprises. Its officials said that the group's construction capacity is currently only enough to meet 30% of the workers, 70% of the workers are working for other companies. In order to control costs, the Group's projects also require their own construction team and other construction team enterprises in the market bidding, low recruitment, competition is very fierce. "We have an annual production capacity of 500 million bricks, but last year we sold less than 120 million bricks, 3 million yuan." The head of a building materials company in a second-tier city in Shandong said 2014 was the most difficult year for the company, with two-thirds of his coal ash bricks sold to the Beijing-Tianjin-Hebei region because of the slump in the local real estate industry and a sharp drop in demand to one-half. "There have been a lot of shutdowns and even closures in brick factories across the country, and nearly one-third of building materials companies have not started work since the Spring Festival in 2015." He said. According to a survey by a concrete company in Shandong, demand for concrete in the domestic market will fall by about 35% this year. However, the company's biggest concern is that more than 400 million yuan of accounts receivable have not been recovered, because many otherwise reputable real estate companies are also experiencing financial difficulties. The head of the development enterprise generally said that the current developer 100 percent cash to pay the material fee is completely impossible. Most businesses can only recover some of the cash, mostly bank acceptances, corporate tickets and houses. "There's a lot of cash that can be recovered at 40 per cent, and acceptance and ticketing materials dealers are going to rush to it, just not the house." One developer said. Jiangsu, a leading decoration industry enterprises, in 2014 customer information volume than in 2013 decreased by 22%, there are decoration intention customers less than 20%. In Jiangsu, a company mainly for real estate projects and power grid companies to do electrical support, its head said, with the decline in the real estate market and the decline in investment in basic projects, corporate profits fell sharply, no profits can only "empty" to support people, waiting for the market to pick up. Related enterprises brewing transformation in the interview, many real estate related industry business leaders to "shuffle" to describe the industry's prospects, while market pressure, they all see the urgency of transformation. "A depressed market will eliminate a number of less competitive companies, but increased competition will help improve product quality." The aforementioned decoration company related person in charge believes that the real estate industry's impact on related industries in the long run is positive, enterprises in order to obtain consumers, it is bound to play their respective advantages to the greatest, the severe market environment can stimulate the comprehensive strength of related industries. A property company in Jiangsu manages properties in more than 40 neighborhoods in four cities in the Yangtze River Delta. Because the property market situation is not good, supporting business difficulties, last year the company lost more than 30 million yuan, can only rely on the parent company subsidies to offset the account, which forced the company to find ways to turn a loss. The company's head said, relying on the company's accumulated residents demand data, they will developers, building materials vendors, decoration companies integrated, for home buyers to provide "bag occupancy" type of housing decoration program, by the residents welcome. In the future, community service is expected to be the company's profit growth point. "The industry is shrinking, but companies are doing well and there is relative room for survival." One developer believes that there are two way for construction companies to win the competition: technological innovation and differentiated services. There are also construction business leaders said that to adapt to market changes in innovation is the fundamental survival of enterprises. The company developed a new product and purchased a patent to solve the problem of building insulation integration. "On May 1st, energy efficiency standards for residential buildings will be 75 per cent, and the outlook for our project is very positive." The person in charge said. On the one side is a large number of traditional building materials enterprises closed down, on the other side is the new building materials enterprises were broken the threshold. Sun Wealy, chairman of Nanjing Xujian New Building Materials Co., Ltd., said the company specializes in environmentally friendly foam brick production and assembly residential construction, and dozens of traditional enterprises have come to seek cooperation since last year, making him firm in the direction of the future. "Not afraid of slow, afraid of standing!" In the face of the crisis, enterprises do not face difficulties and can only wait to die. He said. Real estate transformation related industries first in the interview, entrepreneurs repeatedly mentioned the related industry transformation for the entire real estate industry transformation of the importance. They believe that the real estate industry transformation related industries should be the first, the success or failure of the transformation of related industries determines the success or failure of the real estate industry transformation. They suggest solving the real estate problem, not only to digest the stock of housing on the market, but also to build a new ecology of related industries. Entrepreneurs believe that the real estate industry has been in a frenzy for years, and in recent years fatigue has begun to appear, which has also exposed many problems in the related industries. First, the eyes of the enterprise only up not down. Affiliates focus only on governments, banks and real estate developers, often out of touch with user needs. Second, the industry standard is not perfect, the operation is not standardized, resulting in the quality of products and services prone to problems. We should make use of the opportunity of industry adjustment, play the decisive role of the market in the allocation of resources, straighten out the development of industry ecology, and force the transformation and upgrading of industry. "The 56 real estate-related industries, involving the employment of hundreds of millions of people, should be given sufficient attention." One entrepreneur said that many real estate companies and related industry leaders in the industry, the first pressure is to obtain more profits to support people. Therefore, in the transformation of related industries, the first may also bring about a surplus of personnel, the relevant departments should study countermeasures early, this part of the personnel diversion, do a good job of re-employment services. "Bad businesses can't be eliminated, and good businesses can't survive." In the interview, a business leader told reporters so emotional. Many entrepreneurs believe that the current serious excess capacity from steel, cement and other serious excess capacity can not be eliminated, can not form effective competitiveness, the root cause is the existence of local protectionism. The life and death of an enterprise should be left to the market, not by the "visible hand" manipulation, and the establishment of industry-related power lists should be accelerated. Entrepreneurs believe that the standardized market environment is particularly important in the transformation and development, the advantages of enterprises can win, disadvantaged enterprises can be eliminated, in order to truly achieve the goal of optimizing the economic structure. To this end, it is necessary to accurately assess the quality benefits of enterprises, while strictly implementing relevant laws and regulations to ensure a level playing field in the market. Entrepreneurs also suggest that the real estate-related industries to industrialization, greening, service transformation trend has been very obvious. However, at present, the state's encouragement and guidance of the "three-way" of related industries is still weak, and the "three-way" orientation of related industry products should be strengthened by providing tax and loan concessions to enterprises and transaction tax concessions and subsidies to consumers.