2022 Analysis of the development trend of the construction industry: opportunities and challenges

The trend of changes in the construction industry is closely related to the macroeconomic trend, in recent years, along with the decline in economic growth rate, the overall growth rate of the construction industry has also slowed down, and the profit margin of the construction industry output value (the ratio of the total profit to the total output value) has been on a general downward trend since it reached a maximum value of 3.63% in 2014.

Under the new form, as a pillar industry of the national economy, the construction industry, and what are the opportunities and challenges?

Opportunities for the development of the domestic construction industry:

First, the new urbanization still has a long dividend period

China's urbanization process has entered the mid-to-late stage, and China's urbanization rate reached 64.72% in 2021. The national "14th Five-Year Plan" and the 2035 Visionary Outline proposed: "14th Five-Year Plan" period, the urbanization rate of the resident population increased to 65%, 75% in 2035, 80% in 2050.

Second, the assembly of buildings into the mainstream

In recent years, the national development of the assembly of building industry policy continues to increase, industrial support and targeted gradually strengthened, clear 2025 national new buildings in the assembly of buildings accounted for 30%, the supporting policies in various regions to follow up on a timely manner, the main areas of policy to promote the greater area of construction has been growing rapidly.

Third, green energy-saving buildings continue to broaden the new channel

The state made clear the "14th Five-Year Plan" period 9 key tasks: to enhance the quality of green building development, improve the level of energy efficiency in new buildings, strengthen the green transformation of existing building energy saving, promote the application of renewable energy, the implementation of building electrification projects, the promotion of new green construction methods, the promotion of green buildings, the use of new green construction methods, the promotion of green buildings, the use of new green construction methods, and the promotion of green buildings. New green construction methods, promote the popularization and application of green building materials, promote regional building energy synergy, and promote the construction of green cities.

Fourth, the general contracting model will become the construction industry's main mode of development in the future

The general contracting model has a large share of the international engineering market, but also in the current domestic engineering market by the government management and the current "People's Republic of China **** and the State Building Law" efforts to promote a model, more and more applied to the construction of China's production.

Fifth, the business model to the "investment construction camp" integrated development of the whole industry chain extension

In order to adapt to the industry's development needs, large-scale construction enterprises are vigorously expanding the planning and design, investment and financing, the whole process of consulting, industrial import and other high-value-added business capabilities, to accelerate the industry chain to make up for the high-end chain, the pace of the chain to strengthen the synergies and integration between the industry chain, to enhance the comprehensive integration of the industry chain, and to strengthen the development of the industry chain. Synergistic integration between the industry chain, comprehensively enhance the whole industry chain, integrated development of competitive advantages.

Six, PPP market is still an important direction for the transformation of the construction industry enterprises

PPP market model (Note: that is, the government and social capital cooperation, is a project operation mode in the public *** infrastructure) innovation is also the trend, infrastructure RETIS and hybrid ABO for the PPP market to bring new opportunities for the construction industry enterprises to continue to promote the scale of the development, PPP Projects remain an opportunity to hold high-quality operating assets, and are an important means of transitioning to an asset-operating enterprise.

Seven, the new infrastructure market development space

In the future, the construction industry will accelerate the transformation to information technology, digitalization, intelligence, smart cities, intelligent transportation, intelligent energy, intelligent buildings, etc. has become the new direction of development, the nesting of new infrastructure and traditional infrastructure, integration of development has become inevitable, and will profoundly change the way of realization of the construction industry, the organization of production and management mode.

Eight, the construction market system and operating mechanism is more sound

By 2025, the revision of the construction law to speed up the advancement of the legal and regulatory system is more perfect. The enterprise qualification management system will be further improved, individual practice qualification management will be further strengthened, the engineering guarantee and credit management system will be continuously improved, and the market-oriented mechanism of project costing will be initially formed. The engineering construction organization mode continues to be optimized, and general contracting and whole process engineering consulting are widely implemented.

Challenges facing the domestic construction industry:

First, rising factor costs have become a constraint on the development of the construction industry

The cost of high-quality supply chain resources continues to rise, and control of high-quality supply chain resources has become an inevitable trend. Development and expansion of industrial workers, through mixing, mergers, acquisitions and other ways to extend the supply chain has become an inevitable trend. Labor resources continue to decline, collaborative team resources become a bottleneck for business expansion.

Second, all types of owners of high debt, high leverage so that the construction business risks continue to rise

All types of owners of the shortage of funds, solvency into the biggest risk. Some of the local government's high-debt risk is huge, the need for enterprises to choose carefully. According to the Ministry of Finance information, Jiangsu, Hunan, Guizhou, Yunnan and other places of government financial pressure. Developers, major developers have strengthened deleveraging, risk reduction, but the current widespread use of large nodes payment method for construction companies to cause more financial pressure.

Third, the reform of state-owned enterprises will accelerate the integration and restructuring of the construction industry

"Three-year action on reform of state-owned enterprises" and "benchmarking of international first-class" the overall goal is to stimulate the vitality of enterprises, optimize the mode of governance, and achieve the change of the management of enterprises to the management of assets, state-owned enterprises will be further strengthened by the management of assets, the management of enterprises to the management of assets.

Fourth, the construction industry enterprise market business risk is still hovering at a high level

For a long time, the building construction enterprises due to its industry characteristics lead to the assets and liabilities has been high, in the horizontal comparison of various industries, second only to the financial industry and real estate industry. As of the end of 2021, the asset-liability ratio of local construction SOEs was still hovering at a high level of 80%, with some even exceeding 90%.

Fifth, the application of new technologies in the construction industry will accelerate the transformation of the professionalization of industrial workers

With the gradual use of BIM technology, intelligent buildings, intelligent construction sites, drones and other technologies in construction projects, the need for building construction enterprises to accelerate the professionalization of industrial workers, to increase the training of the use of new materials, new equipment, new technologies, and have a number of higher-skilled industrial workers in the construction. Enhance production efficiency and project construction quality. However, the shortage of highly skilled personnel in construction enterprises, the aging of industrial workers, cultural level and low skill quality, restricting the construction industry from large to strong transformation.