In 2022-2023, the engineering industry is ushering in a harsh winter.
As the large infrastructure projects are nearing completion, the number of projects is gradually decreasing, and 90% of the projects have turned to investment and financing projects, which has brought great trouble to subcontractors, material suppliers and turnover material suppliers.
The real estate industry is also in trouble, the demand for infrastructure projects is declining, and the reshuffle of the industry has become inevitable.
In recent conversations with practitioners in the engineering industry, many people are concerned about the future of the engineering industry.
Indeed, the engineering industry is facing serious challenges, and this is not alarmist, but an objective fact.
So, how do we deal with this severe industry reshuffle?Listen to me break it down.
First of all, we need to recognize that major infrastructure projects are nearing completion.
In the past 14th Five-Year Plan, China has carried out a lot of infrastructure construction, and many counties have basically formed expressways and high-speed railways.
Except for the northwestern region and the undeveloped county seats, infrastructure construction has been completed in most areas.
According to ***, the high-speed rail and highway projects in some areas are being constructed ahead of schedule, and their purpose is to promote local economic development.
As a result, the number of large infrastructure projects has been reduced, which will bring significant adjustment and integration problems for the general contractor.
Second, we need to be aware that the engineering industry is going through a major reshuffle during the 14th Five-Year Plan period.
Downstream enterprises such as labor subcontractors, material suppliers and turnover material suppliers are facing huge survival challenges.
Recently, I communicated with the owner of a steel formwork manufacturer in Guiyang, and he said that it is difficult to do business now, and all projects need to be advanced, and ** is pressed very low.
If the material is **suddenly** after the contract is signed, you may face a loss. We can't help but lament that many businesses that rely on engineering to make a living may disappear in a few years.
Specifically, the following two aspects will be directly affected:
One is the real estate industry. Real estate projects have entered a stage where they cannot grow on a large scale, and real estate-related general contractors, subcontractors, material suppliers and turnover material suppliers will have to be transformed or closed.
The second is large infrastructure projects. During the 14th Five-Year Plan period, most of the infrastructure projects such as high-speed railways, expressways, and national highway reconstruction and expansion have been completed.
General contractors, subcontractors, material suppliers and turnover material suppliers related to large infrastructure construction are also facing the dilemma of transformation or closure.
However, there are also opportunities in the midst of harsh winters.
The reshuffle of the engineering industry means that downstream enterprises need to think about transformation and integration in order to survive. The general contractor of central enterprises also needs to take advantage of the reshuffle to carry out transformation and integration.
They not only need to upgrade and integrate internal management, but also need to reach in-depth cooperation with downstream enterprises.
First of all, labor subcontractors need to be integrated.
Many labor teams are facing the dilemma of not being able to continue their operations because of the excessive pressure on advance funds and the low profits.
This is the inevitable result of the development of the industry to a certain stage.
Subcontracting enterprises with extensive management mode will be eliminated.
Today's labor subcontracting team needs to improve the entire management system and deeply integrate with the business and capital parties to form a complete ecological chain.
Relationships are not a panacea, and workers without financial support and professional teams cannot continue to survive.
Therefore, it is necessary to carry out in-depth cooperation between the business side, the capital side and the labor team, make use of the strengths and avoid the weaknesses, and effectively control the cost in order to survive in the engineering industry.
At the same time, machinery and equipment leasing companies, turnover material suppliers, etc. also need in-depth cooperation and integration.
The deep integration of the mechanical equipment and turnover materials of the construction party can reduce the cost of the construction party and bring profits to the leasing company.
By cooperating with a number of project builders, the leasing company can effectively integrate material resources, minimize material idleness, and establish in-depth cooperative relations with project builders, thereby reducing operating costs.
It is true that it is difficult for unrelated labor teams and machinery and equipment leasing companies to survive.
Only through in-depth cooperation and integration can labor subcontractors, machinery and equipment leasing companies and turnover material suppliers survive in the harsh winter.
And this cooperation not only reduces costs, but also increases profits.
Conclusion: The harsh winter of the engineering industry has arrived, but we should see the opportunities that lie within.
The reshuffle will make the entire industry more refined and efficient, which is conducive to the healthy development of the industry.
As a downstream enterprise in the engineering industry, labor subcontractors, material suppliers and turnover material suppliers need to think about transformation and integration strategies.
Only through in-depth cooperation and cost reduction can we survive and make profits in the industry reshuffle.
Let's work together to meet the challenges of the harsh winter in the engineering industry and meet new development opportunities.
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