2015 China's construction industry big turning point challenges to increase opportunities


Release time:

2015-03-07

The content of this article was compiled and released by the editorial department of [China Curtain Wall Network]: 1) China's construction industry has entered single-digit growth, or even actual negative growth. As the macro economy enters the new normal, the real estate industry has taken a sharp turn for the worse. China's construction industry will face a comprehensive downward adjustment except in the field of infrastructure. The overall growth rate in 2014 was 10.2 per cent, and the real situation must have been in the single digits. In order to adjust the structure, the government will not invest in a large number of engineering projects through direct investment. It is inevitable that the 2015 will enter single-digit growth. In fact, negative growth in a large number of fields (real estate development, commerce, industry, etc.) is inevitable, and the entire construction industry will enter real negative growth. It is also possible. The era of growth of all construction enterprises officially passed, and the differentiation of the construction industry began. 2) The era of relationship competitiveness is getting farther and farther away, and the era of ability competitiveness begins with the accidents of the founders and leaders of several large private enterprises and large state-owned enterprises, which indicates that the cost of relationship competitiveness in China's construction industry has greatly increased, the value of enterprise development has greatly decreased, and the era of ability competitiveness has gradually arrived. Enterprises do not pay attention to the cultivation of internal strength, development will not be sustainable. Construction enterprises with a certain scale and strength should go ashore as soon as possible. 3) The number of mergers and acquisitions of construction enterprises has greatly increased, and the number of bankruptcies of construction enterprises has greatly increased. In 2014, the myth of China's construction enterprises not falling has been shattered, and in 2015, it will be even more enlarged. A number of Chinese construction enterprises will be brought down by real estate enterprises. Due to the decrease in the number of engineering projects and the intensification of competition, a number of enterprises were squeezed out. Due to poor management, a number of enterprises were bankrupt due to serious losses. Due to weak control ability, a number of enterprises were brought down by civil strife. However, compared with the manufacturing and retail industries, the elimination rate of Chinese construction enterprises is still very low. On the whole, the differentiation of enterprises has intensified in 2015, and the Matthew effect appears. Similarly, the bubble enterprises in the field of construction information technology are also facing the danger of collapse in 2015, and the sustainability of enterprises that rely only on administrative monopoly, capital speculation circle, pyramid selling and no innovation ability is facing great challenges. Obviously, such enterprises are eliminated by the market for industry innovation and development is extremely beneficial. 4)PC industry encounters challenges industrialization and informatization is the only way for the transformation and upgrading of China's construction industry. However, how to promote industrialization has its industrial laws, and the policy design is very exquisite. Whether the current policy is effective remains to be seen. The serious lack of innovation capacity of China's construction enterprises is an important challenge for the transformation and upgrading of China's construction industry. It is more effective to promote industrialization and industrialization micro-innovation. Industrialization must be supported by information technology. Before the popularization of information technology in industries such as BIM and Internet collaborative technology, the development of industrialization will be limited. 5)PPP projects are difficult to grow rapidly due to the lack of trust in the government's credit, policy and legal support can not keep up, coupled with the financing difficulties of most private construction enterprises, project investment management capacity is insufficient, the government pushed PPP projects difficult to move forward, thunder, rain less. We still need to wait for the market environment to mature. Large central enterprises will take the lead in launching some projects due to their national responsibilities and national credit guarantees. 6) In the first year of Internet finance in the construction industry, whether it is the government's vigorous implementation of PPP, or the real estate crisis caused by the owner's payment crisis, all lead to the next stage of construction enterprise development, financing capacity will be the core competitiveness. Construction enterprises must open up financing channels, Internet finance is undoubtedly a promising new channel for project financing. In 2014, the new financial expert in the construction industry, the Banhuitong Platform (www.banbank.com), was released, causing great repercussions in the industry and opening the prelude to Internet crowdfunding in the construction industry. 7) The explosive growth of BIM technology application in the construction phase, and the advantage of domestic brand BIM technology. In 2015, the number of projects applying BIM technology in the construction phase will increase by more than 100 percent in China's construction industry, and the application of BIM technology in the construction phase will be formally formed. Since 2015, BIM technology has become a necessity for the survival and development of construction enterprises. During the construction phase, the leading BIM technology brand in China continues to expand its advantages. A large number of large central and state-owned enterprises that have suffered from foreign brands have begun to try domestic BIM technology with stronger localization, specialization and higher input and output. On the whole, 2015 is a big turning point in China's construction industry, with more challenges and more opportunities.

The content of this article was compiled and published by the editorial department of [China Curtain Wall Network]:
1) China's construction industry has entered single-digit growth, even actual negative growth
As the macro economy enters the new normal, the real estate industry has taken a sharp turn for the worse, and China's construction industry will face a comprehensive downward adjustment except in the field of infrastructure. The overall growth rate in 2014 was 10.2 per cent, and the real situation must have been in the single digits. In order to adjust the structure, the government will not invest in a large number of engineering projects through direct investment. It is inevitable that the 2015 will enter single-digit growth. In fact, negative growth in a large number of fields (real estate development, commerce, industry, etc.) is inevitable, and the entire construction industry will enter real negative growth. It is also possible. The era of growth of all construction enterprises officially passed, and the differentiation of the construction industry began.
2) The era of relationship competitiveness is getting farther and farther away, and the era of ability competitiveness begins
With the accidents of the founders and leaders of several large private enterprises and large state-owned enterprises, it indicates that the cost of relationship competitiveness in China's construction industry has greatly increased, the value of enterprise development has greatly decreased, and the era of ability competitiveness has gradually arrived. Enterprises do not pay attention to the cultivation of internal strength, development will not be sustainable. Construction enterprises with a certain scale and strength should go ashore as soon as possible.
3) The number of mergers and acquisitions of construction enterprises has greatly increased, and the number of bankruptcies of construction enterprises has greatly increased
In 2014, the myth of China's construction enterprises not falling has been shattered, and in 2015, it will be even more enlarged.
China's construction enterprises will be brought down by real estate enterprises. Due to the decrease in the number of engineering projects and the intensification of competition, a number of enterprises were pushed down. Due to poor management and serious losses, a number of enterprises were bankrupt. Due to weak control ability, a number of enterprises were brought down by civil strife. However, compared with the manufacturing and retail industries, the elimination rate of Chinese construction enterprises is still very low. On the whole, the differentiation of enterprises has intensified in 2015, and the Matthew effect appears.
Similarly, bubble enterprises in the field of construction information technology are also in danger of collapse in 2015, and the sustainability of enterprises that rely only on administrative monopoly, small capital speculation circles, pyramid selling and no innovation ability is facing great challenges. Obviously, such enterprises are eliminated by the market for industry innovation and development is extremely beneficial.
4)PC industry encounters challenges
Industrialization and informatization are indeed the only way for the transformation and upgrading of China's construction industry. However, how to promote industrialization has its industrial laws, and the policy design is very exquisite. Whether the current policy is effective remains to be seen. The serious lack of innovation capacity of China's construction enterprises is an important challenge for the transformation and upgrading of China's construction industry.
Promote industrialization, industrialization of micro-innovation is more effective. Industrialization must be supported by information technology. Before the popularization of information technology in industries such as BIM and Internet collaborative technology, the development of industrialization will be limited.
5)PPP projects are difficult to grow rapidly
Due to the lack of trust in the government's credit, the lack of policy and legal support, coupled with the financing difficulties of most private construction enterprises, the lack of project investment management capacity, the government pushed PPP projects difficult to move forward, thunder, rain less. We still need to wait for the market environment to mature.
Large central enterprises will take the lead in launching some projects due to their national responsibilities and national credit guarantees.
6) Construction Industry Internet Finance Year
Whether it is the government's vigorous implementation of PPP, or the real estate crisis caused by the owner's payment crisis, will lead to the next stage of construction enterprise development, financing capacity will be the core competitiveness.
Construction enterprises must open up financing channels, Internet finance is undoubtedly a promising new channel for project financing. In 2014, the new financial expert in the construction industry, Banhuitong Platform (www.banbank.com ), was released, causing great repercussions in the industry and opening the prelude to Internet crowdfunding in the construction industry.
7) The application of BIM technology in the construction phase has exploded, and the domestic brand BIM technology has gained an advantage.
In 2015, the number of projects applying BIM technology in the construction phase will increase by more than 100 percent in China's construction industry, and the application of BIM technology in the construction phase will be formally formed.
Since 2015, BIM technology has become a necessity for the survival and development of construction enterprises. During the construction phase, the leading BIM technology brand in China continues to expand its advantages. A large number of large central and state-owned enterprises that have suffered from foreign brands have begun to try domestic BIM technology with stronger localization, specialization and higher input and output.
Overall, 2015 is a big turning point in China's construction industry, with more challenges and more opportunities.