"Twelfth Five-Year" Industrial Planning Promotes Construction Hardware to Improve Quality and Efficiency

With the end of 2011, the first year of the “12th Five-Year Plan” is approaching, and the “12th Five-Year Plan” industry plans for various industries will be issued one after another. On November 28th, the Ministry of Industry and Information Technology issued the "12th Five-year Development Plan for Building Materials Industry", "12th Five-year Development Plan for Cement Industry", "12th Five-year Development Plan for Flat Glass Industry", and "Building Industry" in one breath. There are five sub-plans for the "Twelfth Five-year Development Plan" for the sanitary ceramics industry, the "Twelfth Five-year Development Plan for the New Building Materials Industry" and the "Twelfth Five-year Development Plan for the Non-metallic Minerals Industry."

In the “12th Five-year Development Plan for Building Materials Industry” (hereinafter referred to as the “Planning”) released by the Ministry of Industry and Information Technology, it is expected that the added value of the building materials industry will increase by more than 10% annually during the planning period.

The plan shows that during the “Eleventh Five-Year Plan” period, China’s building materials industry has achieved the fastest development speed and the best quality and efficiency for the past five years. According to data from 2010, building materials industry enterprises above designated size achieved sales revenue of 2.7 trillion yuan and realized profits of 200 billion yuan, an average annual increase of 29.5% and 42% respectively. However, with the credit crunch and slower investment growth, it will be difficult for the demand for building materials to maintain the momentum of high growth in the coming years. The "12th Five-Year Plan" development plan for the building materials industry predicts that the demand for the main products of the building materials industry will show a continuous growth in market size and a gradual development trend. The average annual growth rate of demand for major building materials products during the “Eleventh Five-Year Plan” is 10.5%-15.7%, while the average annual growth rate for the “12th Five-Year” product demand is expected to fall to 2.6%-4.0%.

Some experts have analyzed that the building materials industry has indeed experienced a phenomenon of oversupply in some areas, which is also an important reason for the “incremental expansion” to “high quality and efficiency”.

“In the building materials industry, architectural hardware occupies an important position, including wire, nails, mesh, fasteners, valves, faucets, pipe fittings, door and window hardware accessories, hinges, slides, baskets and other major products. The 'main product demand mentioned in the plan will show a continuous growth in the market size and a gradual development trend.' It also applies to the construction hardware industry.” In this regard, China International Construction Hardware Show (CIBHS) organizer, China's hardware products Ms. Shi Lanlan, executive vice president of the association, said.

“According to the import and export data released by the Customs in the first half of 2011, the export value of construction hardware products in the first half of 2011 was US$13.311 billion, an increase of 27.5% year-on-year. Exports are still among the top in all kinds of hardware products, but the growth rate has been somewhat “The slowdown.” Shi Weilan, deputy director of the company, said: “In the current severe situation in Europe and the United States, it is expected that in the 2011 annual export data announced in the first quarter of 2012, the export growth rate of construction hardware products will remain There will be no obvious improvement."

“This gives us two requirements for construction hardware companies. First, in the face of severe export situation, we must actively develop the domestic demand market, especially to seize domestic affordable housing construction, rural dilapidated housing renovation, and the Midwest. Regional construction and the transformation of old industrial bases in northeastern China, shantytowns, and other opportunities to expand domestic sales channels to fill gaps in the demand of European and American markets. Second, change China’s construction hardware companies to maintain profit growth through expansion of production for a long time, through active innovation and improvement. Scientific research and product development capabilities, and promote the combination of production, education and research, to eliminate backward production capacity and promote industrial upgrading." Shi Xiaolan, deputy director of the said.

"China Hardware Products Association will base itself on platforms such as China International Construction Hardware Exhibition, opening up new and promising export channels for China's architectural hardware companies, and actively liaise with domestic large-scale construction project supervisors, large building materials cities and hardware markets. The architectural hardware companies will expand the domestic demand market and establish a 'group procurement' channel. In addition, we will actively guide domestic construction hardware companies to actively innovate and improve through the new exhibitions and releases, forums and seminars of the China International Construction Hardware Fair. Added value of products to achieve industrial upgrading." The chairman of the stone said finally.