Hidden crisis in the ceramic industry(5/19/2010)

Since the debt crisis triggered by Greece, Spain, Portugal, Italy and other euro-zone economic difficulties seemed to increase the EU's 750 billion euros hastily thrown rescue program, can reverse the situation, remaining outside many doubts, worries whether the U.S. economic crisis passed on to Europe, leading to a new round of global economic second bottom. Meanwhile, the domestic government's strict control measures on the real estate industry introduced one after another, the economy rose to a high degree of political issues, has significantly suppressed the pace surging real estate market is very strong atmosphere of wait and see, not just up or down, and there are like The East is Red China's real estate is this fabulous get down? However, the overall situation of the domestic real estate can do this downturn is hard to determine now, because there are too many interests' interest groups and local governments do not want to lose the golden eggs, real estate, and real estate stocks in Shanghai Shenzhen stock market has stumble endlessly down at least 30%. With the constant evolution of these crises, we believe that this year's domestic and international economic situation is not optimistic, at least not as we hope for calm. The 2009 economic situation over the past gratifying, economic crisis like the one vanishes, the first few months of this year is progressing well, the market is full of enthusiasm, but in order to rescue banks too much for delivery of goods will result in the shadow of the bubble economy drive reluctant to leave, rushing toward inflationary pressures, the central government is eager to when the bubble is not a big deal in ../advance to avoid a catastrophe out of control. In particular, the macroeconomic side of the stock market has always been the most sensitive, there are signs of trouble will be a real-time adjustment to the recent stock market plunged again and again, means that a tight money market financing difficulties, and the prices of the cold, the real economy in 3-6 months will also be a big turning point. And macro-economic trend, especially in the real estate industry is closely related to the building materials industry in the second half of this year will definitely slow down the situation. Ceramic sanitary ware industry in the current rate is too fast, overheating, excessive force throughout the country conditions are not conditional on the ceramic sanitary ware in a large production line, almost everyone agrees that the market will never be saturated.

Not long ago, I led a group visit to Henan, to fully feel the Central Plains fiery scene, a large number of Fujian, Wenzhou bosses one after another to the Henan Hebi, in yellow, factories and other places in Nanyang, Henan targeting a huge market space. Tao machine and chemical equipment industry business, it can be said is unprecedented strong, delivery difficulties, shortage of auxiliary enterprises has become the biggest heart bosses, of course, have long physical and mental exhaustion caused by overwork. Some boss laments, many businesses are not necessarily the original all a good thing, because prices of raw materials, often for no reason, with day and night to help but there is quality flaws, once affected the normal production of ceramic enterprises, perhaps not only received money missing. Even have to be fine, you say the pressure of supporting a large business owners big operation?

In short, before the second half of 2010, ceramic sanitary ware industry will face no small challenge, a fall of leaves were gone makes me know my world, if market demand began to decline in excess capacity, excessive expansion of the shortcomings will soon appear, industry upgrade, integrate acquisitions will be the industry trend. Now so many of ceramic sanitary domestic industrial park, a plan that is hundreds of lines, the number of square kilometers, most of the middle and low product knowledge production, plant crude, extensive management, from energy saving, green, low carbon, dignified work requirements vary far. Therefore, we must as soon as possible from the price war, war to the direction of the brand transformation efforts to industry. Leave some for future generations something of value, rather than piles of construction waste, the laughing stock of history.
(Author Mosaic and Tile, China Leiyuan 5/19/2010)

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