With the rapid development of the construction industry, many people are concerned about the sustainable development of China's construction industry and are concerned about the sustainable growth of the market. Is the company sustainable?

In each country's urbanization and industrialization, the construction industry is a rapidly developing industry. With the continuous advancement of urbanization and industrialization in China, the Chinese construction industry is also rapidly developing. At present, China’s construction industry accounts for China’s GDP. The proportion reached 5.7%, ranking behind the manufacturing industry, agriculture, forestry, animal husbandry and fishery, transportation and logistics, and becoming the fourth industry in the country. As one of the pillar industries of the country, the construction industry is also a typical investment-driven industry. With the fluctuation of the national economic development cycle, the construction industry presents a cyclical fluctuation characteristic. Since the beginning of the 21st century, the total output value of China's construction industry has nearly tripled, the compound growth rate of the construction industry's output value has reached 22%, and about 306 billion yuan per 1 trillion in state fixed asset investment has become the output value of the construction industry.

However, at the same time as the rapid development of the construction industry, many people are worried about the sustainable development of the Chinese construction industry and are concerned about whether the future market can continue. Large-scale enterprises are worried about whether the investment in large-scale equipment can be rewarded and whether the construction of a talent team will become a burden. Is it due to the sustainable growth of the market? Is the company sustainable?

Is the construction market sustainable?

China’s continued economic development has provided the construction industry with a huge domestic market. The author has calculated that the construction industry has also played a very important role in the economic take-off of developed countries. During the period of economic growth in Korea and Singapore, the construction industry’s GDP exceeded. 10%, currently, the Spanish construction industry's GDP still exceeds 10%. The US construction industry's share in GDP also exceeds 4%. The Chinese economy is still in the early stage of urbanization and industrialization. Currently, the urbanization rate in China is around 47%, even with There is still a long way to go before the annual growth rate of 1.5% reaches 60% or more. Urbanization brings about the construction of the city itself, and the inter-city transportation construction is a huge construction market. Industrialization, It has brought about tremendous changes in people’s lifestyles. At present, people experience the deepest urban traffic jams and the huge size of the floating population in the cities, all of which indicate a huge construction market. Although the construction of railways and the construction of expressways have greatly improved. People's travel. However, such improvement still can only barely keep up with the increase in people's demand. The reserved space is not large. In the future, great demand will need to be met by a larger-scale construction, and it can be predicted that in the future for a long time China's construction industry will still play an important role in economic development.

The improvement of China’s construction companies’ own capabilities has increased the international competitiveness of Chinese construction companies, and the awareness of large-scale enterprises in expanding overseas markets has also increased. In 2008, the turnover of Chinese construction companies overseas has reached nearly 60 billion U.S. dollars. Some construction companies have reached 40% or more of their total output value in the international market. Chinese construction companies have grown overseas and won huge profits for them. Market growth space.

If the confidence in the industry and the market is the foundation for the sustainable development strategy of the construction company, then the study of the characteristics of the construction industry and the analysis of the characteristics of the construction enterprise management can enable the sustainable development strategy of the construction enterprise to become possible.

Are construction companies sustainable?

To realize the sustainable development of construction companies, first analyze the characteristics of the construction industry:

1. The construction industry is closely related to the national investment in fixed assets

Due to the investment-driven characteristics of the construction industry, the industry is very sensitive to national investment policies. Through the comparison of gross domestic product, investment in fixed assets, and gross output value of the construction industry in recent years, it is possible to clearly find the investment caused by each country’s macro-control. Changes in levels affect the output of the construction industry.

The development characteristics of the construction industry require our leaders to pay attention to investment when doing business strategy research. Focus on investment can be analyzed from three perspectives:

(1) Pay attention to the overall investment situation of the country

The state's total investment situation determines the total amount of the construction industry market. If the investment increases, the market demand will increase at a faster rate, which will be beneficial to construction companies. If the investment stagnates or decreases, the market will stop or the demand will decrease. This poses a challenge to construction companies. For enterprises engaged in international business, paying attention to the overall international investment situation is also their basic merit. In the long run, international investment still maintains a healthy growth.

(2) Concerned about the investment trend of the industry

In recent years, the total investment in the country has grown rapidly, but the growth trend of each subdivided industry is not the same. We can see that in the past few years, the country’s investment in electricity has grown rapidly. In recent years, the railway industry and highways Investment in industries, urban infrastructure, nuclear power and other industries is growing at a rapid rate. In contrast, the growth rate of power investment is slowing down. Construction companies are very important in the research of industry market segments; in the future, which industries will maintain investment The continuous development? According to the author's experience, the investment in emerging industries and Chaoyang industry will maintain a good and explosive growth; the continuous development of urbanization in China will bring huge opportunities for the construction of subways, light rails, and large municipalities; and the environment brought about by industrialization. Pollution will make the environmental protection construction market a sustainable construction market, and a low-carbon economy will bring sustainable energy to the emerging energy market; some areas of construction investment may not be able to sustain rapid growth in the long run, and large-scale railway and highway construction Maybe it is a phased, non-ferrous, black, cement construction market may shrink, but the accumulation of numerous projects formed by its huge scale provides a huge maintenance market for construction companies. The maintenance of US highway network is American. Construction companies provide a huge market. Similarly, the huge inventory of projects in various fields in China will provide a huge maintenance market for Chinese construction companies.

(3) Pay attention to the investment situation in each region

Due to the regional economic development, the country’s investment hot spots are also in rotation. The growth rate of investment in different localities is different. For example, in 2008, the investment growth rate in Jiangxi, Hainan, Tianjin, Jilin and Ningxia was very fast. 2007 In recent years, the investment growth rates in Anhui, Fujian, Shaanxi, and Henan are very fast. In some provinces, the investment in fixed assets has been large and stable, such as Shandong, Jiangsu, Zhejiang, Guangdong, and Henan. Guangdong is actually the country with the largest total GDP, but in recent years I have found that it is not the largest investment in the country, but Shandong is ahead; construction companies need to pay attention to areas with large total investment, but also pay attention to investment growth. Fast area. In the same way, there are also phased market hot spots in the international market. In recent years, China is undoubtedly the hottest region in the world. Russia and some countries in the Middle East are also hot spots for construction. In the future, the development of Southeast Asia and Africa will also become a world. The hot markets of the construction industry, these hot markets, also provide a stable market for China's overseas construction companies.

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