“Nearly 500 regulated companies have been eliminated in the past five years, and industry concentration has further increased.”
“Looking back on the 13th Five-Year Plan, the overall output of ceramic tiles dropped by about 15%, exports dropped by 1/3, export unit prices also dropped by 19%, and the per capita labor productivity of ceramic enterprises increased by 60%.”
"Two years ago, there were only 7 slate production lines in China. As of September 2020, there are more than 90 slate production lines in China."
"The association has put forward development guidance for the '14th Five-Year Plan', in which the output of architectural ceramics, including rock slabs, is targeted to return to the peak of tens of billions by the end of the '14th Five-Year Plan'."
Gong Wei, secretary-general of the China Building and Sanitary Ceramics Association, introduced the current operating ecology of the building ceramics industry at the 2020 Zibo Ceramics Industry Development Summit Forum, as well as the development trends of China's building ceramics industry predicted by the association during the "14th Five-Year Plan" period. the above situation.
The following is the transcript of the speech (excerpt):
Nearly 60 ceramic construction companies withdrew in the first 10 months
First of all, let’s take a look at the overall performance of my country’s ceramics industry in the first three quarters of 2020.
Since the outbreak, by April, the entire ceramic construction industry was at a standstill. Driven by the country's series of stimulating consumption policies, consumer demand continues to improve, and positive factors continue to increase. The demand gap caused by the new crown epidemic is gradually recovering. By May and June, according to the association’s research, the impact of the epidemic has basically been overcome.
The epidemic caused a market shutdown and a decline in exports, which forced the industry to transform and upgrade, accelerating the elimination of low-end backward production capacity and inefficient enterprises. According to relevant data from the National Bureau of Statistics, as of October, approximately 60 companies in the construction and ceramics industry had withdrawn. Some people think it is caused by the epidemic, but the epidemic may be the straw that breaks the camel's back. It is just a problem that the company itself has faced during the transformation process in recent years because of the outbreak.
Product R&D capabilities are continuously upgraded. China goes to Italy to participate in exhibitions every year. Every year, thousands of domestic people go to Italy (to watch the exhibition). The (Bologna Exhibition) is suspended this year. In a sense, it forces the industry to spontaneously improve the innovation capabilities of our products. Companies with brands and innovative capabilities have increased their product research and development efforts this year.
The demand gap caused by the epidemic has made market competition more intense and industry differentiation more obvious. According to association research,There are two types of companies that are doing very well in the post-epidemic period.
The first is brand enterprises, which benefit from the cultivation and deep cultivation of brands over the past years. In the post-epidemic era, when the demand for resources in the market has plummeted, resources have moved closer to these brand enterprises.
The second is companies that continue to insist on product innovation and continue to strengthen product research and development according to changes in market demand.
The new normal of the epidemic has given rise to new marketing models. Enterprises actively embrace the Internet and communicate with customers and market products through various new media forms such as Douyin, WeChat, and live broadcasts.
Enterprises' ability and resilience to respond to market changes are further improving. The outbreak of the epidemic may have a great impact on other industries, but we see that ceramic companies are improving quality and efficiency and developing towards high quality.
At the same time, we see that the industry development situation is still grim, structural contradictions are still prominent, and backward production capacity is still prominent.
In five years,
The number of regulated enterprises in the construction and ceramics industry has decreased by more than 500
2020 is the final year of the industry's "Thirteenth Five-Year Plan". In the past five years, under the complex and changeable political situation at home and abroad, the overall operation of the industry has maintained a stable and healthy development trend. For the construction and ceramics industry, Bid farewell to the extensive development model of the past and transform into a new historical process of high-quality development.
The industrial scale, corporate strength, technical level, including R&D capabilities have been significantly improved, and the gap with foreign advanced levels has been further narrowed.
Of course, we also clearly see that building ceramic products are affected by domestic and foreign market demand, and production capacity supply began to enter a downward channel after reaching its peak in 2014 and 2015.
In the past few years, we can truly feel that energy conservation, emission reduction, and green production have become a mainstream trend in industry development. Environmental protection has been a major topic that everyone talked about in the past few years, but now we are talking about how to drive development through innovation, how to improve our intelligence level, and how to adapt to current market changes and channel changes.
The other one is the adjustment of the industry's mechanism. The process of eliminating backwardness is accelerating, and the industry is reorganizing the domestic and foreign markets. In the past five years, the number of regulated companies in the ceramic industry has increased from more than 1,600 to more than 1,050 by the end of this year. This means that nearly 500 regulated companies have been eliminated in the past five years, further increasing industry concentration.
Now affected by policies, domestic ceramic production areas have begun to reorganize their layout. In particular, many ceramic companies in Foshan have begun to relocate to the western region, such as Guangxi, Chongqing Yongchuan, and Rongchang, all of which are attracting leading companies through certain preferential investment policies. Western market layout.
Ceramic tiles are subject to overseas anti-dumping, and some advantagesEnterprises have transferred their advantageous production capacity abroad, such as in Southeast Asia, Malaysia, Indonesia, Vietnam, etc., and exported Chinese products to Europe through a curve to save the country. This also explains one of the reasons why our ceramic exports have declined.
The industry has embarked on the journey of intelligence, and production efficiency has been significantly improved. As we all know, our industry is a labor-intensive industry, with basically hundreds of people working on a production line. However, in recent years, some large and influential leading companies have continued to increase investment in intelligence. Some companies have a production line with a daily output of 40,000 to 50,000 square meters, with less than 50 people, and this is only the production capacity of Industry 4.0 at the current stage. If it is further improved, its number of employees will decrease. It can be seen that our current industry leading companies are in intelligent manufacturing The field is sparing no effort to improve production efficiency.
Chongqing Weimei intelligent production line employs less than 50 people per production line.
We looked at a relatively representative 4.0 production company in the ceramic industry in Spain. Its daily production capacity is close to 20,000 square meters. There are almost no people on that production line. There are 11 people per shift per line, and more Equipment monitoring and maintenance personnel. Therefore, our current skill level still lags behind that of foreign countries.
New consumption patterns and channel changes, and new technologies continue to accelerate industry transformation. In the past, when the ceramic industry was developing rapidly, we seized the real estate market. Now we also see many outsiders, such as SPC stone plastic flooring, beginning to seize the ceramic market. Of course, SPC is just the tip of the iceberg, and there are still some new things that have not yet been seen, so the ceramic industry must have a sense of urgency.
Environmental protection, resources, and land constraints have an increasing impact. This is why companies have felt that costs have increased in recent years and corporate pressure has increased. Of course, this also forces companies to continue to produce and develop high value-added products, forcing the industry to gradually transform from products that relied on mid- to low-end and low-price competition in the past to products with artistic value, cultural value, tonality, and that can be favored by the market. .
There are also capital and brand factors that redefine the company's market share in the industry. In the past two years, leading companies have been actively engaged in mergers and acquisitions, using the capital market to achieve rapid growth. Once these leading companies gain the power of the capital market, they can use the power of their brands to squeeze out some small and medium-sized enterprises.
During the "Thirteenth Five-Year Plan" period, the output of ceramic tiles fell by 15%
Looking back on the "Thirteenth Five-Year Plan" and combining past historical data, we can draw the conclusion that the overall output of ceramic tiles has dropped by about 15%, exports have dropped by one-third, and the export unit price has also dropped by 19%; the average per capita of ceramic tiles Increased labor productivityLast year, the first tens of billions-level enterprise was born in the industry for the first time, and leading enterprises are actively embracing the capital market.
Let’s take a look at the development process of China’s architectural ceramics from 2007 to 2019. From 2007 to 2014, it can be said that it has been singing all the way. From 2012, it has grown from double digits to single digits. By 2016, Reaching the peak, the entire growth began to decline in 2017. The industry bid farewell to disorderly and extensive development and began to enter a historical stage of high quality and standardization.
Let’s take a look at the export situation of China’s ceramics as a whole from 2015 to 2019. In 2015, our exports were 1.139 billion square meters, and in 2019 it was 770 million square meters. Where will the export-oriented enterprises export in the future?
Let’s take a look at China’s share of the entire world ceramic market in 2018 and 2019. In 2018, the global total output was 13.2 billion square meters, and China was 9 billion square meters, accounting for 67.8%. By 2019, the entire total output was 13.2 billion square meters. Growth, 15.2 billion square meters, China 8.22 billion square meters, accounting for 54.17%. Affected by the COVID-19 epidemic, global construction ceramic production is on a downward trend, so everyone must maintain rational expectations for the future, especially the entire market in the post-epidemic period.
Stone slab,
Can China's ceramic tiles return to the peak of tens of billions?
Stone slab is a hot topic in the "Thirteenth Five-Year Plan" and a hot topic in the industry in 2020.
The rapid popularity of rock slabs in 2020 has allowed China's building ceramics industry to quickly move from the building decoration materials market to a tens of billions market, and has also helped our building ceramics industry return to its peak of tens of billions. The industry really needs such explosive products Create a new height for the industry.
The explosion of rock slabs can indeed bring new hope to the industry and the high-end market in the future. The emergence of slate has seized the market in the field of natural stone, multi-functional stone, wood and even metal.
According to the association's analysis, China's ceramic tile output is likely to drop to 6 billion to 7 billion cubic meters in the future. This trend is obvious. But can the emergence of rock slabs bring China's total ceramic output back to its peak of 10 billion?
There are various voices in this analysis. We believe that slate must be the hope of the future industry.
In 2019, my country’s ceramic tile imports were 1.2 billion yuan, and rock slab imports accounted for about 30%. In 2019, the sales volume of ceramic tiles in my country was approximately 230 billion yuan, while the sales volume of domestic rock slabsSales accounted for only 480 million.
The slate market has experienced a blowout in 2020. As of May 2020, domestic slate production lines are close to saturated production capacity. Some leading companies have completed full-year production capacity orders, and other slate production lines are also close to full capacity!
Two years ago, there were only 7 slate production lines in China. As of September 2020, there are more than 90 rock slab production lines in China. In the first quarter of 2020, China's slate production capacity has ranked first in the world. It should be said that slate has only driven the transformation of the industry in China and may become a new growth point for the industry in the future.
Goals of the 14th Five-Year Plan:
The industrial concentration ratio of TOP10 enterprises exceeds 20%
2021 is the first year of the “14th Five-Year Plan”. How will the industry develop in the future?
The association has put forward development guidance for the "14th Five-Year Plan". Among them, the production target of architectural ceramics, including rock slabs, will return to the peak of 10 billion by the end of the "14th Five-Year Plan", of which the domestic market demand will be 9 billion square meters and the foreign market will be 10 billion. billion square meters.
The per capita labor productivity of construction and ceramics enterprises must exceed 1.2 million, and advanced brands must exceed 1.6 million. By the end of the "14th Five-Year Plan", three to five well-known backbone enterprises with sales of more than 15 billion will be cultivated, which means that in the future Industry concentration will further increase.
We want to call on the industry, especially outstanding companies, to account for more than 5% of their main business in R&D expenditures. At present, the reason why enterprises can maintain healthy and sustainable development despite the current bad environment is that their R&D capabilities have reached more than 5%. In the past, the ceramic industry did not pay much attention to research and development. It was more influenced by the dividends of the market and the population. However, at this stage, with shrinking demand, consumption upgrading, and changes in consumer demand, we have bid farewell to the past era of producing what the market accepted. Now we must stand from the user's perspective and use the user's thinking to do our product research and development.
The concentration ratio of the top ten industries in the construction and ceramics industry by sales exceeds 20%. The target is to reach 15% by the end of the "13th Five-Year Plan", and it is hoped to reach or even exceed 20% by the "14th Five-Year Plan".
(The article is reproduced from Ceramic Information)
