Elevator industry: two policies to improve concentration

( Source: China Network ) Summary: upcoming test tower and Maintenance regulatory policies , will raise barriers to entry and accelerate industry concentration increase, especially in the capital to accelerate the concentration increased. Maintenance test tower and the two policies will accelerate the upgrading elevator industry concentration , especially to enhance the degree of concentration in the capital .

Upcoming test tower and Maintenance regulatory policies , will raise barriers to entry and accelerate industry concentration increase, especially in the capital to accelerate the concentration increased.

Test tower policy will be implemented in the country April 30, 2014 , the policy requires that producers need to have an elevator test tower facility will directly increase barriers to entry , resulting in annual sales is difficult to survive in less than 700 domestic enterprises , either out of the market , either test tower companies have merged to accelerate industry concentration increased.

Maintenance regulatory policies will take effect in January 2014 in the National Executive , has been in Guangdong pilot , Elevator Maintenance required by the manufacturers or their delegate units . Currently about 60% of elevator accident is caused by improper repair and maintenance , 70% of the market is price competition Maintenance Maintenance occupy a third party . Maintenance norms in the country after the implementation of the policy will affect three aspects: First, elevator manufacturers significantly enhance the security dimension since the proportion of a large number of third-party repair and maintenance companies will exit the market. Second, repair and maintenance market will get rid of low-cost competition, safety and quality first , price will rise Maintenance , repair and maintenance market space in 2015 is expected to reach 39 billion yuan , 2013 - 2015 compound annual growth rate will reach 24.9%. Third, the network layout perfect elevator companies most benefit , there is no network and brand -funded enterprises was further reshuffle .

We report on the elevator industry point of view can be summarized as follows: 1 , overestimated the elevator and the real estate market relevance . In fact , only about 60 percent lift demand is determined by the real estate , while the elevator is about 40% of the demand ratio increased from elevators, rail transportation, affordable housing , renovation , export and other non-real estate factors. 2, the market underestimated the elevator industry growth. Conservative estimates , 2013 - 2015 elevator industry growth will reach 15.1% , 13.3 %, 13.3% , is still in the boom phase. 3 , compared to foreign , domestic elevator will grow faster , the share will continue to increase. Domestic elevator has a strong competitive advantage , reflected in the mechanism and the cost and other aspects , the conservative projected growth rate for 2013-2015 was 21.4 %, 19.1 %, 18.8% , higher than the industry overall 5-6 percentage points. 4, the test tower and Maintenance two policies will accelerate the upgrading of the elevator industry concentration , especially in the capital to enhance the degree of concentration .