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Production and market analysis of ready mixed concrete in China in 2020

2021-08-11

2020 is a special year due to COVID-19 outbreaks. Under the background of the overall downturn of the world economy, the concrete industry has been greatly impacted. According to incomplete statistics, the total production of commercial concrete in China in 2020 is 2.899 billion cubic meters, a year-on-year increase of 5.47%, the growth rate continues to decline.


Although the volume of Chinese concrete industry is huge, but most of the enterprises are too small, generally still dominated by small and medium-sized enterprises. Low concentration, excess capacity and fierce homogeneous competition are the prominent problems in Chinese concrete industry. In 2020, the national and local environmental protection efforts have been intensified, which has caused enterprises to reduce production and limit production. In addition, it has become more difficult for enterprises to purchase raw materials and the cost has increased, which has brought adverse effects on enterprises' production, operation and contract performance. With the intensification of competition in the industry, the quality of contract performance and the collection rate continue to decline,the overall accounts receivable of the industry increases sharply, the collection cycle is long, the enterprise capital cost increases, and the risk of capital chain breaking is intensified. In addition, the merger and reorganization of the concrete industry and the extension of the industrial chain of cement enterprises into the concrete industry will make the competition in the concrete industry more fierce. As the industry competition intensifies, the leading enterprises have obvious advantages in scale and technology, and their competitive strength is constantly enhanced.


At present, the road of green production of domestic concrete enterprises has formed a consensus, and the industry will also develop towards industrial intelligent and digital transformation in the future. Big data, cloud computing, artificial intelligence, industrial Internet and other digital technologies will be deeply integrated with the concrete industry, intelligent manufacturing + Internet + green manufacturing of intelligent factory will be the development of the concrete industry chain road.

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