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China Construction Development

Aug 25, 2017

CAI min, editor of architecture frontier, calculates the market value of the most representative listed companies in the construction industry, 2.5 trillion yuan, with revenue of 3.8 trillion yuan.Compared with the total of 80,000 construction enterprises, 117 listed companies account for only one-thousandth of the total.With revenues of 21% and profits of 24%, the proportion is a reverie. The free competition in the construction industry has passed, and the monopoly competition is coming.Most people don't feel that way if they don't talk about it;In people's impression, the construction industry is highly fragmented, the market is highly competitive, and the data tell us the situation is changing, the facts are also changing the researchers carefully, perhaps monopoly competition era is coming, and we can see from four angles such signs:

In the PPP business today is probably the first episode of the story, monopolistic competition trillions of competition between the PPP business has become a leading enterprise in essence, both governments at all levels to embrace the slogan of building state, or the mindset of bank funding, or signing up the results of the statistics, all show the reality of it is true, as of October of the PPP project statistics, state accounts for more than 60%, combined with local state-owned enterprises, listed companies to complete the PPP projects, the author robbed is expected to more than 90% of the business, in the most populous and the largest country in the construction industry, was no more than 50 construction enterprises take 90% of the business, this principle is very obvious, obviously it is not free competition in the market.

Construction is to promote engineering general contracting business will be the second set of monopolistic competition, not all of the general contractor of the feast, can be engaged in the business enterprise group, in the author's expects, will not be more than to carry out the PPP business enterprise;Of the 80, 000 construction enterprises, 99% of the enterprises are not engaged in the general contracting capacity, and it is impossible to build the total project contracting capacity in the foreseeable future.

The third episode is building industrialisation, a rapidly growing industrial business, and how many successful people are there?People communication and engaged in the construction of industrialization, the writer do they feel the difficulty of building industrialization, a large private enterprises invest nearly 1 billion heavily engaged in building industrial products research and development, manufacture, according to public information, it has applied for patent has been more than 1000 items, it is a lossmaking, and feel more construction industrialization is hard;More than 8 m construction firms can invest 500 million engaged in building industrial research and development of enterprises will not too much, there is no research and development, under the background of technical standards and industry is not mature, the probability of success you can imagine, this is the general enterprise is hard to bear, the author and building industrialization veteran (perhaps not veteran, a real veteran also walk on the road), is the consensus of opinion, in the field of Chinese building industrialization is difficult to have more than 20 winners, there may be also survivor of around 50, I'm afraid other entrants are mostly losers;Even if we're optimistic about 100 successful people, how high are the 80, 000 businesses?

Closest to the result of the fourth set is mergers and acquisitions, at present, the "building frontier" are entrusted to release some merger and acquisition of information, from the release of information, there are intentions are mainly large enterprise groups, either state or local large groups, they want to buy design institute, improve their abilities to acquire business not done in the past to improve their own professional field, if there is no strategic ambitions, don't have the resources, I think they probably won't feel free to an olive branch, to buy the ability is not strong, the scale is not large also enterprise;By contrast, the acquisition information from large private enterprises is very few and the acquisition information from small and medium-sized enterprises is almost extinct.

Mr Wu Guanglong published in "frontier" building "who would out" in the new round of construction industry transformation and upgrading, perhaps he is optimistic, if the construction of monopoly era, out is probably most, we can make a pot of tea, drink while want to pictures of the future in construction: 5 years a decade later, housing who will be doing?Who's doing the rail and rail transit?Who is the highway or municipal council?Who's doing the electricity, the grid, nuclear power?Who is decorating the decoration?

Looking back at the construction industry in 2030, we may be at the beginning of a monopolistic competition, and the time of 2030 is already a new scene of monopolistic competition.One day, you will find that the construction will be like today's auto industry: who is "closure" and "suppliers", "4 s shop", who will do as a spectator, I seem to see that picture, see it is slowly clear, at the same time appear in my heart the idea: whatever you wish for, the picture shows the reality is walking step by step.