The Construction Hardware Industry Has Ushered in a Major Change

  • By:admin
  • 08-08-2022
  • 1

The outbreak of the epidemic in 2020, the continuation of the epidemic in 2021, and the year 2022 will continue to be caught up by the epidemic, and it is also a critical year for China’s economic development direction to change. Under the influence of factors such as epidemic prevention and control, adjustment of economic growth patterns, and strengthening of supervision, the real estate industry is facing many difficulties, and the construction hardware industry, which is highly related to real estate, has also been severely impacted, and its business volume has fallen sharply.

At the end of 2021, the Central Economic Work Conference set the tone of “stabilizing the word”. Under the triple pressure of “shrinking demand, supply shock, and weakening expectations”, macroeconomic policies will focus on stabilizing growth in an all-round way. , the meeting proposed to “appropriately advance infrastructure investment”. On May 23, 2022, the State Council issued a package of policy measures to stabilize the economy, which clearly announced 33 measures in 6 areas to stabilize the economy, and expressed the need to further increase support for infrastructure. The progress and the progress of the issuance and use of special bonds require that the 3.65 trillion special bonds for this year be basically issued by the end of June and used by the end of August. It can be seen that the policy level is tilting towards the development of infrastructure in order to play the role of a pillar for stabilizing growth!

Although the epidemic has caused different impacts and impacts on various industries, as the government’s willingness to invest in infrastructure to grow steadily, it has also brought new opportunities and new changes to the construction hardware industry. The cruel market is also gradually shaping a new social pattern, allowing Businesses transition from an old business model to a new one. The pandemic is far from over, but the replacement of old and new industries has gradually begun.

1. The Industry Integration is Accelerated, and the Concentration is Further Strengthened

In developed countries in Europe and the United States, after years of development and industry integration, the building hardware industry has formed a series of products including ASSAABLOY, Stanley, Ingersoll Rand, DORMA, Siegenia-aubi Large-scale hardware integration suppliers represented by (Silya-Obi), G-U (Grid House), etc., have a high degree of industrial concentration and standardization. my country’s construction hardware industry started late. As far as the current market situation is concerned, problems such as scattered materials, many sales links, opaque prices, long supply chains, and low transportation efficiency guarantee rate are still very prominent. In the past, extensive development has become a building block. The fatal factor in the hardware industry. In recent years, local large-scale hardware enterprises have begun to emerge, and they have continued to grow stronger and bigger through their own accumulation and mergers and acquisitions in the industry, and the development trend of industry integration is obvious.

2. Accelerating Digital Transformation to Boost High-quality Development of the Industry

As my country’s 5G and other new digital infrastructure continues to lead, and the value of data continues to increase, digital transformation has become the general trend. The development of the Internet promotes the transformation and upgrading of traditional building hardware platforms. Under the tide of digitalization, building a digital supply chain platform to improve the management efficiency and production level of enterprises has become the main path for the current digital transformation of enterprises. In the next few years, it will be an important stage of digital transformation and upgrading of China’s traditional industries, and the construction hardware industry will also usher in a turning point in transformation and upgrading.

3. The Capitalization Operation Tends to Be Active, and the Cooperation Between Enterprises is Obviously Strengthened

In the environment of global competition, in order to gain a favorable competitive position and improve competitiveness, industrial capital is another theme of industry operation. In recent years, companies in the hardware industry have been listed successively, and even if they are suspended and reorganized, the operation of the capital market will not be affected. From the perspective of capital, the current main feature is that the expansion of capital is intensifying; from the perspective of competitive behavior, the cooperation of resource sharing among enterprises is increasing.

4. The Traditional Retail Boundary Has Been Broken, and Building Materials E-commerce Has Begun to Enter a Period of Rapid Development

For a long time, the sales of products in the construction hardware industry have mainly been completed by offline sales methods such as the distribution department and the building materials market. In recent years, many construction companies, building materials companies, and even traditional e-commerce platforms have been testing the online sales of building materials. According to industry data, in 2021, there will be 772,363 building materials and related industries in China, and 35,761 building materials e-commerce and related companies. The number of building materials e-commerce-related companies will account for 4.63% of the total number of building materials and related industries. Under the direct influence of real estate regulation and the slow growth of industrial scale, online transactions show strong market substitution ability.



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