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Don not be afraid of the"overplus" in coating industry

2015.10.19   08:36

In recent years,with the rapid development of China's real estate industry and the manufacturing sector for the development of the coatings industry create a huge space for development.In just three decades,China's paint industry from nothing to now become the world's largest producer of paints and consumer,before the end of its growth rate there.But with the slowdown in the domestic economy,since 2014,the domestic real estate industry decline in investment growth,which greatly reduced the demand for paint products,resulting in overcapacity in the domestic paint,coatings reduce corporate profit margins.For coatings businesses,overcapacity has seriously affected the development of business and industry,paint companies almost reached on "excess" the mere mention of the case in fact,paint companies do not have to talk about "excess" the mere mention of a lot of people on the domestic paint industry overcapacity understand there is still some misunderstanding.Here we take a look at the paint industry overcapacity.

What is overcapacity

"Surplus" refers to the production units to produce the product more than the market needs "surplus" commodities. In fact,this concept is very vague,it did not give a more scientific definition of the market can stand scrutiny.For example,count the number exceeding the market demand,"surplus" does not sell much inventory long count "excess" There are many goods shelve 3-5 years suddenly become the darling of the market,has become a popular commodity buyer,which does not count considered "surplus",due to a sudden change in the international trade situation,the original selling products squeezed international politics and policies No market,whether classified as "excess" series? So,for the "excess" States have their own special background and reason,can not be generalized.

How to understand the paint industry overcapacity

For the paint industry,overcapacity and not all of the paint production overcapacity have emerged from the current developments in the coatings industry,the overcapacity is the low-end paint products,and like powder coatings,waterborne coatings market environment not excess.And water-based metallic paint industry as yield market is relatively small,its also one of the country's producers,so it can not be considered excess capacity,so we must be considered in the discussion of various aspects from the time the paint industry overcapacity.

Development of the coatings industry for achievements outweigh economic development,but also an indispensable role in economic development,the key is how we manage this "degree".We can not indulge coatings industry production capacity,"surplus" disorderly development and expansion,we can not allow it to take up too many resources and productivity,the "surplus" has put the cage regulation is an effective method.Reasonable,orderly,timely use of play "excess" of potential and should be the focus of the national policy level of concern.

In the current paint industry,paint industry plagued development of the "cage" is green,the last two years,the state issued a series of environmental policies on the paint industry,such as:paint consumption tax,which makes solvent-based coatings business is very uncomfortable.Looking at the current development of the domestic paint industry,we find that the domestic paint industry,small and medium enterprises based paint,which paint companies investment in R&D and new product development is relatively small,its paint products are low in end based.So the paint industry to resolve the low excess capacity,we must first cultivate a large number of medium-sized paint companies,paint companies increase support for these efforts in R&D and new product development to help these medium-sized paint companies to upgrade their R&D capabilities,and gradually enter the high-end paint product development ranks,eventually complete the transition from low-end to high-end products.

Although the domestic low-end paint products in overcapacity situation,but we can use,"along the way" of the opportunity,to achieve production output,this part of the excess paint products exported to foreign countries,so that one can alleviate the domestic paint market overcapacity situation,it can also improve the coating corporate profit margins,accelerate the domestic paint industry,the pace of internationalization.

From the long-term development of the coatings industry point of view,we do not talk about "excess" and discoloration,overcapacity is not terrible,as long as we make good use of this part of the surplus production capacity still can improve the performance of coatings enterprises,improve the coatings industry output.

By Betty

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