Keywords: architecture, scale, decoration

1. The scale and existing problems of architectural decoration industry in China.

1. Scale and total amount

According to the survey of China Building Decoration Association, the scale of China's building decoration industry is roughly as follows:

There are more than 250,000 architectural decoration enterprises in China, of which 20,000 are mainly engaged in architectural decoration and have the qualification grade approved by the national construction authorities, and 50,000 are engaged in architectural decoration, such as civil engineering companies, installation companies and garden companies, with business licenses. However, due to its small scale,180,000 enterprises have not obtained the national qualification grade and are mainly engaged in residential decoration projects. There are more than 8.5 million construction teams in the national building decoration industry, including 500,000 engineers and technicians and nearly 7 million surplus rural laborers. Due to the development of building decoration industry, there are more than 5 million employees in the field of building decoration materials production and circulation, and about140,000 people are engaged in building decoration industry. The national building decoration industry completed the annual project output value of 550 billion yuan, and realized the added value of the construction industry of 654.38+070 billion yuan, accounting for 6.2% of the gross domestic product (GDP). According to the national industrial policy, state-owned assets are gradually withdrawing from the architectural decoration industry. At present, state-owned enterprises account for less than 1% of the total number of enterprises, and private enterprises and joint ventures account for the vast majority.

2. The main problems at present

Although the architectural decoration industry has made great progress and made outstanding contributions to national economic and social progress, there are also many problems in its development, which can be summarized as follows:

(1) There are too many enterprises, the supply exceeds the demand, and the market competition is cruel.

Compared with the annual project demand, the number of existing enterprises and the total project undertaking capacity in China have exceeded the demand. At present, new decoration engineering enterprises are still being established, and the number of architectural decoration construction enterprises is still increasing. There is a serious imbalance between supply and demand, making it more difficult to undertake projects. Because supply exceeds demand, it is difficult for enterprises to survive and work, and many enterprises cannot undertake projects for a long time. In the industry, especially in residential decoration enterprises, a large number of advertisements flooded all kinds of news media to undertake projects, forming an advertising war. The bargaining competition among enterprises is very serious. The whole industry has reached the state of low-profit industry, and some projects even lose money because of low quotations. Insufficient commitment to tasks, declining profitability, and poor conditions for self-accumulation and self-improvement have seriously affected the development of enterprises and industries.

(2) The scale of the enterprise is too small and its ability to resist risks is weak.

Enterprises in China's architectural decoration industry are generally small in scale, with poor capital, manpower and technical strength, and their ability to undertake projects is generally insufficient, which makes it difficult to resist market risks. "There is a big gap between the specifications, equipment level and product quality of material production enterprises and the international level, and the market share is generally low. So far, there is not a flagship enterprise in China's architectural decoration industry that occupies a place in the world. Even well-known domestic enterprises and material production enterprises have an annual project undertaking capacity and annual sales of less than 654.38+billion yuan, which is hundreds of times different from the annual output value of large international companies with tens of billions of dollars.

(3) The degree of specialization is low, the competition platform is single, and price competition is the main form.

This is a big problem in China's architectural decoration industry. Enterprises in the industry can generally do anything, but they can't do anything well, and their specialization level is very low. Without its own business characteristics and patented technology, enterprises cannot form their own core competitiveness, thus forming different levels of competition among enterprises in the industry. No matter what kind of project, a large number of enterprises participate in bidding, but few enterprises can participate in bidding with their own unique professional standards, aiming at the professional design and construction organization scheme of the project, which has caused many enterprises to compete on the same platform. The result can only be price competition and market operation by non-commercial means, which leads to the decline of self-accumulation ability and profitability of enterprises and also affects the standardized development of the market.

(4) Because the industry is at a low level of competition, and the whole market is not standardized, the level of self-discipline in the industry is poor, and vicious competition is very common, which has also caused great damage to the market, causing some owners to take advantage of the market chaos and non-standard competition in the industry to engage in advanced projects and default on project funds, resulting in difficulties in capital turnover of construction enterprises and arrears of workers' wages, which has formed deep social hidden dangers.

Technological development is lagging behind, and the ability to independently develop and popularize new materials, new processes and new technologies is poor.

The technological progress of China's architectural decoration industry mainly depends on the introduction of foreign technology, which is highly dependent on the outside world. However, there are few new materials, new products, new technologies and new processes independently developed by Chinese enterprises, and the investment in science and technology is small, and the capital and R&D strength are insufficient. Neither construction enterprises nor material production enterprises have their own technical reserves, which has greatly hindered the sustainable development of the industry. Especially in the promotion of new technologies, the market information is ineffective and the promotion efforts are insufficient, which affects the quality level of projects to a certain extent, and the profitability of enterprises' projects is very weak.

Lack of understanding of the international market makes it difficult for China to adapt to the new situation after its entry into WTO.

Because of the long-term habit of vertical comparison, enterprises often only see development and achievements, but do not pay attention to horizontal comparison to find gaps and deficiencies. Facing the internationalization of China's architectural decoration industry market after China's entry into WTO, the industry generally lacks knowledge of international big companies, international markets, international operation practices and rules, and is not fully prepared for the pressure it faces, so it is impossible to accurately grasp its own positioning and adjust its development strategy.

Second, the future development trend of China building decoration industry

The opportunities and challenges of temporary workers in China's architectural decoration industry after joining the WTO will cause great changes in the industry, which can be summarized as follows.

(1) The trend of internationalization and diversification.

With the integration of the China market with the international market, all parties in the architectural decoration market are showing the trend of internationalization and diversification, which is the inevitable result of China's accession to the WTO, and its performance in the industry has four aspects:

The first is the internationalization and diversification of project owners. Whether public buildings or residential decoration projects, more and more investment comes from international capital, and this change will be accelerated with the improvement of China's international economic and political status and the increase of exchanges.

Secondly, the internationalization of design and construction. A large number of international engineering companies have entered the architectural decoration market in China, which has brought pressure to the China market. This change is more reflected in a large number of joint ventures undertaking projects in the market. At present, in the design of large-scale landmark buildings in big cities, foreign designs account for a considerable proportion.

The third is the internationalization of material production. Facing the huge market of decorative materials in China, a large number of international capitals have invested and set up factories in China to produce new building decorative materials. These materials are superior to those produced by domestic enterprises in technical quality and environmental protection quality. Therefore, they have strong competitiveness and market share, and the domestic market is under great pressure to rapidly increase domestic materials.

The fourth is the internationalization of material marketing. A number of internationally renowned material distributors landed in China decorative materials market. For example, B&Q in Britain and Obeid in Germany. , has been widely distributed in the China market to carry out business activities.

(2) The development of high technology will lead to technological innovation and revolution in architectural decoration industry.

With the progress of social science and technology, new scientific research achievements will be transformed into building decoration materials, and new construction machinery and technology will enter the building decoration industry, which will cause great changes in material production, engineering design and construction technology, and trigger technological innovation and revolution in the building decoration industry. According to the requirements of the development of architectural decoration industry and the strategic goal of national sustainable development, the content of architectural decoration will also change, and intelligence, automation and energy saving will become important contents. Therefore, the safety and energy saving of architectural decoration engineering will be regarded as the key breakthrough field of future technological development. With the promotion of relevant national laws and standards, through the efforts of the whole industry, we have made more updated achievements in technology development, formed the core competitiveness with independent intellectual property rights of China enterprises, and have a competitive advantage in the architectural decoration technology market. Reducing dependence on foreign technology and achieving the goal of sustainable development of the industry will become an important content of future industry development.

(3) The development trend of scientific enterprise management and project management.

With the integration of China's architectural decoration market with the international market, the management level of China enterprises should be continuously improved, the most prominent of which is that the management of engineering projects should be integrated with international management. No matter in the bidding process of project contracting, business negotiation and construction organization in project construction, as well as the completion acceptance and post-service of the project, it should be carried out in accordance with international project operation practices. There are a lot of practical working knowledge and operation procedures that China architectural decoration enterprises have not yet contacted. Because the project is the carrier of enterprise management level and profit creation, these changes will force China enterprises to change the present situation of enterprise management and project management, and carry out a revolution of enterprise management through internationally accepted certification means, so as to improve the management level and enhance the profitability of the project, which will also become a very important content of future industry development.

(4) Pay attention to the development trend of environmental protection and health.

Under the global background of paying attention to ecology and environmental protection, our society is paying more and more attention to environmental protection and health. Building decoration industry, as the key industry of environmental protection transformation, has undergone great changes in recent years. Great achievements have been made in both legal system construction and market management, but there is still a certain gap from developed countries. With the strengthening of China's social environmental awareness and the improvement of people's attention to nature, the future market access will be more and more strict, closer to the international advanced level, which requires enterprises to fully establish environmental awareness and increase investment in environmental protection transformation in the process of decoration engineering design, material production and construction organization. Only by comprehensively improving the environmental protection level of China's architectural decoration industry can we gain a firm foothold and develop in the future market.

(5) The trend of further market segmentation.

Further market segmentation is the inevitable result of specialization. To change the narrow competition platform in China's market, it is necessary to take the road of specialized division of labor, so that enterprises can be specialized, refined and refined in professional fields, and gradually form a management and market operation mode with unique operating characteristics in each market segment, and form a well-known brand in each market. At present, the tooling market has been clearly distinguished from the residential decoration market. In the future tooling market, there will also be decoration engineering enterprises in medical institutions, hotels, office buildings, commercial facilities, transportation facilities and other market segments. Only under the condition of increasing specialization can enterprises conduct in-depth and thorough research in professional fields and constantly create new technical and economic achievements, so as to improve the overall level of China's architectural decoration industry in the constantly improving market segment quality.

(6) The trend of joint reorganization among enterprises.

In order to change the weak competitive strength of enterprises in China, it is necessary to reorganize enterprises jointly, optimize the allocation of resources, form a regional and even national industry flagship enterprise, truly become bigger and stronger, have the brand and advantages of enterprises, be able to resist international competition and occupy a place in the domestic and foreign markets. In the process of enterprise merger and reorganization, it is bound to be accompanied by changes in enterprise system and mechanism. According to the requirements of modern enterprise system, establish a management model that meets the requirements of the international market and can promote the survival and development of enterprises. These also test the knowledge level, professionalism, moral level and management level of entrepreneurs in the current industry.