Pressure doubles construction hardware company seeking transformation

Recently, the "12th Five-Year Development Plan for Building Materials Industry" released by the Ministry of Industry and Information Technology shows that during the "11th Five-Year Plan" period, China's building materials industry has enjoyed the fastest development speed and the best quality and efficiency for five years. However, with the credit crunch and slower investment growth, the demand for building materials in China will be difficult to maintain the momentum of high growth in the next few years. The "12th Five-Year Plan" development plan for the building materials industry predicts that the demand for the main products of the building materials industry will show a continuous growth in market size and a gradual development trend. During the “Eleventh Five-Year Plan” period, the average annual growth rate of demand for major building materials products in China is 10.5% to 15.7%, while the average annual growth rate for the “12th Five-Year Plan” product demand is expected to fall to 2.6% to 4.0%.

"The business is not very good!" This is the author's collective exclamation when the author interviewed a large furniture city on the edge of the Fourth Ring Road in Beijing. Although the interview was just on the weekend, it was the same as usual, and the furniture market was very crowded. The same scene also appeared in the building materials market. A distributor of Chen Xing told the author that the plumbing hardware store he operated had not been opened for a few days. The turnover started to decline from the second half of last year, and it was plummeted after the Spring Festival. "There are still some retail businesses, but there is not a single purchase business. After that, I can only cancel the sales agreement with the manufacturers in advance." Dreary and huge inventory pressure has exacerbated the pessimism of the downstream hardware industry practitioners .

Recently, the "12th Five-Year Development Plan for Building Materials Industry" released by the Ministry of Industry and Information Technology shows that during the "11th Five-Year Plan" period, China's building materials industry has enjoyed the fastest development speed and the best quality and efficiency for five years. However, with the credit crunch and slower investment growth, the demand for building materials in China will be difficult to maintain the momentum of high growth in the next few years. The "12th Five-Year Plan" development plan for the building materials industry predicts that the demand for the main products of the building materials industry will show a continuous growth in market size and a gradual development trend. During the “Eleventh Five-Year Plan” period, the average annual growth rate of demand for major building materials products in China is 10.5% to 15.7%, while the average annual growth rate for the “12th Five-Year Plan” product demand is expected to fall to 2.6% to 4.0%.

The continuous rise in the cost of decoration is a barometer for the industry. The rising cost and the cooling of the building decoration market are the main reasons for the continuous cooling of the construction hardware industry.

Mr. Cui, who runs the hardware and building materials business, stated that at present, the reason for the price increase of goods is the general increase in the purchase price. He reluctantly said that due to rising prices of raw materials such as steel and aluminum, the price of construction hardware has risen by more than 10%, and profits have dropped from 60% a few years ago to 20% now.