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Shanty towns are transformed into a new blue ocean, the cabinet industry is now a new turning point

by:Hench Hardware     2021-08-31
In recent years, news about the promotion of shantytown renovation policies has been endless. As a policy attempt to narrow the gap between the rich and the poor in China, it has undoubtedly brought a certain impact on the development of the real estate market, and also brought to the cabinet companies that are deeply affected by the real estate policy. A new landscape.

  Real estate turning point has appeared

   It is reported that since 2014, various indicators of real estate development investment have declined. Commercial housing sales area, residential sales area, and sales of commercial housing have also declined year-on-year. Based on this judgment, the real estate turning point has appeared. According to reports, the shed funds source government and social capital's household area renovation has become a strong competitor to replace real estate to support GDP with a direct investment quota of 100 billion yuan.

  Because real estate involves many upstream and downstream industrial chains, it has a huge impact on the national economy and employment. Therefore, at the moment when the real estate turning point has been reached, there must be new increments to 'hedge' the negative impact of the real estate slowdown. From this, we may be able to understand the deep meaning of the accelerated transformation of shanty towns and additional railway investment.

   shantytown renovation brings new business opportunities

  Because the shantytown renovation is mainly to renovate the dilapidated urban houses, it will improve the housing conditions of families in need, raise the living standards of cities and towns, and accelerate the process of urbanization. The improvement of people's living standards and the upgrading of consumer standards will inevitably drive the development of cabinets and other home building materials industries. The urban and rural housing decoration market will become a new blue ocean for cabinet companies.

   It is reported that at present, the home improvement market space in urban areas continues to expand. According to relevant data, by 2015, the consumption of home building materials market will reach 1.43 trillion yuan. Once the shantytown renovation policy is implemented, it will accelerate the rapid growth of the output value of the cabinet and other home building materials industries.

   At present, with the vigorous promotion of the shantytown renovation policy, the government will inevitably take effective measures to promote the construction of building materials to the countryside. As for building materials companies such as cabinets, the first- and second-tier cities with severely saturated markets have no incentive to continue to cultivate. The rise of the urban market has brought them new hope.
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