The prefabricated building industry is facing a deep shakeout

Since 2021, the development of the prefabricated building industry has ushered in a new opportunity. Construction started in prefabricated building totaled 630 million square meters, up 50 percent from 2019 and accounting for about 20.5 percent of new construction, according to the prefabricated building’s 2020 development data.

In the context of carbon peak, carbon-neutral, steel structure as the main form of prefabricated building industry, is “Rapid”development posture, to further optimize and upgrade the structure of the construction industry.

                                             The demographic dividend is disappearing, and innovative firms have a competitive advantage

The traditional pattern of concrete placement is typically mode of production. In the past few decades, the cast-in-place concrete construction model has been developed extensively due to the rich labor resources in China. But with the gradual disappearance of the demographic dividend, the rapid rise in labor costs, labor-intensive production model will be unsustainable.

The weakening and disappearing demographic dividend will accelerate the upgrading of the traditional construction industry to the construction industrialization. Construction Industrialization, highly mechanized production and processing, transportation and construction as a whole, will reduce labor costs to a large extent, relative to the labor-intensive cast-in-place construction model has obvious advantages. In particular, the prefabricated building, which relies on scientific and technological innovation to enhance its strength, will have more competitive and development advantages.

                               The prefabricated building industry pattern has been formed, and steel structure may become the mainstream of the whole industry

At present, China has formed the pattern of the largest share of the fabricated concrete structure, followed by the steel structure. In the carbon peak, carbon-neutral background, steel structure is expected to continue to grow, or will become the mainstream of the industry.

According to the industrial route of the mature developed countries, the fabricated concrete structure and steel structure are the two most widely used fabricated construction modes. From the perspective of national policy, the policy support of fabricated concrete structure and steel structure is strong. Because our country has a good steel and concrete industrial base, large production capacity, wide distribution, mature technology, can provide sufficient raw materials for the rapid promotion of prefabricated building. However, from a long-term perspective, the great potential of steel structure is expected to exceed the assembly-type concrete structure, become the new mainstream of the industry.

                                                      The prefabricated building, which has the ability to integrate the entire industrial chain, will take the lead

The core competitiveness of the future assembly enterprise will be the ability to integrate the entire industrial chain of the prefabricated building, covering design and development, supply chain management, construction management, and use the technology platform to link them in series. The single project-oriented management mode of traditional construction industry will be replaced by the product-oriented and systematic project management mode.

Technology Platform and systematization are the foundation of project management. With the help of high and new technology, the software and hardware of design and construction will be developed, the efficiency of design, supply chain and assembly construction will be improved, the integration of the three fields will be further strengthened, and the integration of design, supply, processing and assembly will be realized.

Innovative Design Pattern: a balance between standardization and individuation. Like building blocks, the standardized assembly-type components are designed in a personalized way.

Powerful global supply chain saves material cost. Consolidate the bill of materials for all construction projects, combine small orders into large orders, reduce the communication costs with many suppliers of materials.

Professional and efficient assembly construction, fast and high quality completion of the project. Optimize the construction assembly plan in advance, and complete the assembly task accurately and orderly according to the established plan in the construction site.

                                                                                                          Head concentration, small business will be out

After a 10-year golden period of urban real estate, the construction industry is undergoing a new round of industrial revolution. Since 2020, the driving force of the transformation of the construction industry has become stronger, combining with the market demand, the rapid development of the assembly type in the 2021 is a foregone conclusion. Not only that, with the further strengthening of Industry Segmentation, industry in the next 3-5 years will usher in a wave of deep reshuffle, can not withstand the market test of the small and medium enterprises will be eliminated, the industry will be concentrated to the head.

In recent years, we have been exploring ways to develop the prefabricated building industry, with the goal and direction of improving product quality and industrialization capabilities. In the depth of the industry reshuffle today, only a clear understanding of the situation, firm initial direction, solid promotion and enhance the overall strength of enterprises, to stabilize the pace of more competitive times.