Excessive excess capacity in sanitary hardware will intensify

It is understood that from January 2000 to September 2010, nearly 10 million new urban housing units have been built in China, and farmers have built more than 90 million new housing units each year. From this, it is estimated that China will build 7 million new urban housing units each year, and farmers will build 9 million households each year. If urban housing is built with 2 toilets per set, and farmers build houses based on 2 toilets for each household (in fact, less than 50% use flush ceramic toilets), China's annual market demand for toilets should be 32 million.

From the perspective of the investigation of this industrial base, the annual capacity of ceramic flush toilets in China has exceeded 120 million. The actual output is over 65 million and exports are about 30 million. If domestic sales are calculated at 32 million, Chinese manufacturers The annual inventory is 3 million, and the excess capacity in the industry will reach 60 million. This is the fundamental reason why the sanitary ware industry's profits are getting thinner and thinner.

So far, Guangdong Kaiping, Chaozhou, Henan Changge, Zhejiang Xiaoshan, Jiaxing, Wenzhou, Taizhou, Ningbo, Fujian Nanan, Xiamen, Fuzhou and other places are still in full swing to develop sanitary industrial bases and further expand production. It is estimated that in the next three years, domestic sanitary ware production capacity will also grow at a rate of more than 10%. China's sanitary ware exports will drop by an average of over 12% each year, and China’s real estate industry will decline by more than 15% annually due to macro-control. This means that the phenomenon of overcapacity in Chinese sanitary ware will intensify, the living environment of sanitary ware companies will deteriorate, and the competition between production areas and production areas will become more intense.

From the current profitability of domestic sanitary companies, the profit of manufacturing companies is between 8-25%. And these so-called profits are still in exchange for the damage to the health of employees, deducting employee benefits and benefits, in violation of laws and regulations, at the expense of the environment and other costs. This source of wealth is undoubtedly guilty and bloody.

Excessive excess capacity in sanitary hardware will intensify

If the law is to be handled in terms of employment, product sales, taxation, environmental protection, etc., the cost of the enterprise will increase by at least 25-35% on the original basis. In other words, as long as companies operate in accordance with the law, they are almost unprofitable, and even the more products they produce, the more they lose.

If the majority of sanitary ware companies wish to withdraw from the swamp, the price is that the company must own its own brand, be away from commercial bribery, pay attention to environmental protection, use labor according to law, and increase investment in technological innovation.

As a local government that wants to become a big industry, while paying attention to GDP, it should pay more attention to the living environment of the sanitary ware industry, minimize salt spills on the bloody wounds of the industry, and do less to harm the industry and harm the children's achievements. "Engineering" strives to be a peaceful messenger to resolve the contradiction between the supply and demand in the market. Do not do the "spoiler" of the industry because of a temporary whim.

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