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Disconnect between supply and demand: the door and window industry faces overcapacity

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  • Source: Dongyang Information Network

    Summary: The contradiction of overcapacity has been behind all door and window companies for many years.

    The contradiction of overcapacity has been behind all door and window companies for many years. In recent years, economic growth has slowed down, the property market is sluggish, demand is weak, and the overcapacity contradiction has become more prominent. The current door and window industry is a tangible overcapacity where supply and demand are disconnected, that is, a certain amount of low-end homogenized products has a severe excess of demand, while the demand for high-end doors and windows must be met. Anything will cause a situation, there are quite deep cause analysis, and the consequence is that every enterprise can bear it.

    Unreasonable industry shape

    Reason analysis and analysis The main reason for the excessive production capacity of the door and window industry in China is that the shape of the industry is unreasonable and the development method is relatively backward. Specific question pictures are mainly manifested in the industry's weak innovation ability, peer companies gathered together to fight in the low-end market, and fight the "price war". New technologies and new products are difficult to meet demand.

    Secondly, the industry development measures are extensive, and no one has formed an industry development pattern dominated by strong and strong enterprises. The analysis and analysis of the industry are disorderly competition and repeated construction. In addition, other door and window companies are eager to be large and fast, and are too optimistic about the market expectations. Investment has blindly spread the pie in the low- and middle-end fields, and no one in the door and window industry has achieved timely shape adjustments and industrial upgrades. As a result, there has been no serious overcapacity in the low-end and middle-end industries.

    Analysis of the Causes of Low-price Products Flooding the Market

    The shape and the excess capacity in the low and mid-end areas make it possible to taste the bitter fruits. "Low-end excess" causes analysis and analysis of the overall inability of China's door and window industry to compete with international markets and foreign-funded enterprises. Small-volume, low-level manufacturers flood the market with low-priced products, which brings vicious "competition" to the industry. The "price war" is getting more and more intense. As the downstream demand continues to escalate with market norms and products and services, the market for low-end products will be small.

    The great leap forward investment of the door and window industry in recent years has intensified the repeated construction of low-end products and increased the difficulty of adjusting the shape of the industry. The most direct consequence is the decline in corporate profits. It must also be said that other SMEs and inferior product manufacturers are facing a crisis of life and death.

    Overcapacity is already a questionable picture behind all door and window companies. In the future, the development direction of door and window enterprises is to clear a certain amount of homogeneous door and window production capacity that "supply exceeds demand"; and then to increase the supply of medium and high-end production factors through shape transformation.

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