On August 8, 2024, the WeChat official account of China Building Materials magazine released an article entitled "Sand and gravel industry: how to reshape the industrial ecology in the new situation?".
The article points out that with the adjustment and transformation of the national macro economy, the sand and gravel industry, as the cornerstone of the construction industry, is inevitably impacted.
On the supply side, the shadow of gradually expanding overcapacity looms over the entire industry. Although my country's existing sand and gravel production lines can meet current market demand, the continuous addition of new production lines has further exacerbated the risk of overcapacity.This phenomenon not only reflects the blind expansion of the industry in the past few years, but also exposes the problem of enterprises' lack of foresight and flexibility in the face of market changes.
On the demand side, real estate investment and construction area have both declined. Although infrastructure investment has maintained growth, the growth rate has slowed down significantly, making it difficult to effectively fill the gap in the real estate market, resulting in insufficient effective demand for sand and gravel. In terms of price, statistical data shows that in June of this year, the comprehensive average price of sand and gravel in China was 99 yuan/ton, a year-on-year decrease of 7.8%.
Faced with such difficulties, the sand and gravel industry has begun a profound reflection and self-examination. How to survive in adversity, how to seek opportunities in challenges, and how to reshape the industrial ecology in the new situation have become issues that every sand and gravel enterprise must face and think about.
The article points out: "In the baptism of market storms, there are always some enterprises that can stand at the forefront and become industry leaders。
Faced with market pressure, Shanghai SANME Environmental Protection Equipment Co., Ltd.'s sales performance in the first half of this year increased by over 40% year-on-year. The relevant person in charge of the company stated that the success of Shanghai SANME is not accidental. Despite significant changes in the market environment, Shanghai SANME quickly adjusted its strategic direction with keen market insight and strong innovation capabilities, focusing on product research and technological innovation, and continuously launching new products that meet market demand. These measures collectively contributed to the counter trend growth of Shanghai SANME's performance and provided valuable experience and inspiration for other enterprises in the industry. “
The severe market environment is not the end point for enterprises, but the starting point for starting anew. Good enterprises will always emerge from crises. With the deepening of green building and ecological environmental protection concepts, as well as the increasing support from the government for new energy, new materials, and other fields, the sand and gravel industry can take this opportunity to develop towards high-end, refined, and green directions. By developing high-quality sand and gravel products, expanding new application areas and market channels, the core competitiveness and market share of enterprises can be enhanced. With a firm pace and innovative attitude, we will be able to seize opportunities in challenges and achieve higher quality development.
