2011 raw materials affect the paint industry will face profitability problems

Under the influence of the financial crisis in 2008, the development momentum of China's paint industry is still very good, as can be seen from the following set of data! In the first 10 months of 2010, China's paint output has reached 8 million tons, and the annual output is expected to exceed 10 million tons. However, the industry believes that as the world's largest coating production and consumption country, while China's coating production is growing rapidly, it is faced with the task of how to improve the quality of industry development and move from a major paint nation to a strong paint nation in 2011. This is also the focus of the work in the opening year of the 12th Five-Year Plan.

It is reported that in 2009 China's paint production reached 7,554,400 tons, surpassing the United States for the first time, becoming the world's largest paint producing and consuming country. With the acceleration of urbanization in China, the rapid development of wind power, new energy, transportation, logistics, information and other industries, as well as the implementation of supporting policies for home appliances to the countryside, building materials to the countryside, etc., the development of the paint industry is promoted, and the industry economy has been promoted. Steady and rapid development.

In 2010, the paint industry in China is still developing rapidly, but the deep-seated contradictions in the development of the industry have not been fundamentally solved. The unreasonable product and industrial structure and the incompetent innovation capacity still restrict the development of the industry. Products with high technological content, such as paints for automotive coatings, marine coatings, container coatings, and coatings for strategic emerging industries, are subject to constraints of capital, channels, and technology, and are mainly monopolized or partially monopolized by large international companies. Some paints with special functions are still blank in China and totally dependent on imports.

As far as China's current coating production is concerned, the central issue before us is how to make China a world paint power. Sun Lianying pointed out that in the next step, the entire industry should take the scientific development concept as a starting point, change the mode of economic development, transform traditional industries into modern industrial systems, encourage technological innovation, strengthen brand awareness, and accelerate the structural adjustment of products, enterprises, and industries. upgrade. In 2011, the industry’s central task was to improve the core competitiveness and anti-risk capabilities of the coatings industry, and to make a good start for the “12th Five-Year” period.

Although China’s coating production ranks first in the world, the quality of industry development is not high, and the gap between the profit rate and value-added of the coating companies and developed countries’ multinationals is not small, which restricts the development of China’s major painter countries. Become a paint powerhouse. To this end, he pointed out that to solve these problems need to improve industry access threshold, it is recommended that relevant departments to speed up the development of industry access conditions, support for large paint companies, eliminate backward production capacity of small businesses, increase industrial concentration. At the same time, it is necessary to strengthen technological innovation. One is to establish an innovation platform and strengthen the application of provincial and national engineering technology research and development centers. The second is to cultivate talents, especially innovative talents. The core of scientific and technological innovation is talent. One of the biggest gaps in the competitiveness of domestic and multinational companies is the quality of talent and the management of human resources.

Unlike 2010, another challenge faced by the coatings industry in 2011 was the decline in corporate profits. Like other industries, the profit margin of the industry is getting smaller due to the sharp rise in raw material prices.

At present, the paint industry is facing relatively large inflationary pressures, raw material prices have risen sharply, and price fluctuations have been very large. This has brought great difficulties to the company's marketing and it is difficult to make business decisions. The paint industry belongs to the manufacturing industry. Raw materials account for 50% to 70% of the cost. The rise in raw material prices has pushed the profits of enterprises to be squeezed. Faced with this situation, Chuanhua Coatings put forward its 2011 development strategy: optimize product structure, vigorously carry out research and development of new products, achieve technological breakthroughs, transform existing technologies, open up new markets, increase brand value, and do a good job of services. In addition, the company also proposes technical innovation, marketing breakthroughs, operational improvement, and foundation-based work goals.

Coating products are widely used in the development of the national economy. Their development is not only restricted by the economic and policy environment at home and abroad, but also depends on the development of all walks of life. The rapid development of new energy, transportation, transportation, and information industries will require the provision of new paint products. This will also provide more room for industrial upgrading, industry consolidation, structural adjustment, and strategic transformation of the paint industry.