Report on the Development of Ready-mixed Concrete Industry in Guizhou Province in 2024

I. Overview of the development of ready-mixed concrete industry in the province in 2024.

In 2024, the market scale of ready-mixed concrete industry in Guizhou Province contracted seriously, hovering in the low market demand area. The ready-mixed concrete industry in Guizhou Province has shown the characteristics of regional competition, and the disorderly competition continues to intensify. Major enterprises have competed for market share by shrinking production capacity, reducing labor and production costs, improving product service quality and technological innovation. Some enterprises have begun to explore the integration of upstream and downstream industrial chains (sand and gravel materials, prefabricated components, outsourcing business) to speed up mergers and acquisitions. In order to reduce costs and improve competitiveness. With the acceleration of industry consolidation in 2024, some small and medium-sized enterprises are facing elimination or acquisition, thus increasing the relative market concentration of the whole industry, the industry will usher in a new round of shuffling, high-quality enterprises will stand out, and market share will gradually concentrate on superior enterprises.

2. Basic operation of ready-mixed concrete industry in the province in 2024.

(1) Industry scale and production capacity.

1. There are 813 ready-mixed concrete enterprises and sites registered in the "Guizhou Ready-mixed Concrete Industry Information Management Platform", of which 690 are qualified and registered by the industry authorities.

2. The number of employees in the industry in the whole province is 86618, the number of employees in the industry has been greatly reduced, the situation of one person holding multiple posts in enterprises is remarkable, and the salary treatment has declined. In

2024, the output of various types of concrete in ready-mixed concrete industry enterprises in the whole province was about 39.52 million cubic meters (including housing construction and some infrastructure construction, excluding unregistered sites, self-built projects and new energy projects), and the output value of the industry was 4.760 billion yuan. Accounting for 13% of the total output value of the province's building materials industry. Enterprises with an output of less than 300,000 cubic meters account for 93%, accounting for 57% of the total output of the province; enterprises with an output of 300,000-500,000 cubic meters account for 5.5%, accounting for 26% of the total output of the province; The proportion

of enterprises with an output of 500,000-1,000,000 square meters is 1.3, and the utilization of industrial solid waste in the whole province. The statistics on the use of solid waste submitted by all parts of the province throughout the year show that the consumption of solid waste in the whole province is nearly 8 million tons, and the actual utilization rate is 65%. The types of waste residues to be utilized are: fly ash, yellow phosphorus slag, ore dressing tailings, smelting waste residues, construction waste residues, etc.

(2) Economic operation data of all regions of the province in 2024.

The following are the basic data statistics related to the concrete industry in all regions of the province:

(4) Analysis of market situation.

1. Market price of ready-mixed concrete in 2024. In

2024, the overall price and demand of concrete products showed a downward trend. From January to March, although the province accelerated the centralized resumption and construction of key projects, the demand for concrete declined sharply in the middle and late March, which was more severe than same period in previous years, resulting in a situation of "price without market". From April to June, against the backdrop of falling high raw material costs and market demand recovery falling short of expectations, concrete prices remained weak, and the market gradually recovered under the guidance of the government. However, the availability of downstream funds has not been significantly improved, demand growth has slowed down, and concrete market prices have maintained a slight decline. From July to October, the market demand has increased, but the stamina is insufficient and the price is still unstable because of the fierce competition at low prices. From November to December, the arrears of the project were serious, coupled with the low price of raw materials, the shrinkage of the concrete market intensified, the price continued to decline, and serious low-cost competitive prices appeared in Anshun, Qiannan and other regions, which seriously disrupted the market order.

2. Withdrawal of enterprise funds.

It is understood that in 2024, the accounts receivable of ready-mixed concrete industry enterprises in the whole province remained high, and the repayment was the lowest compared with the same period in recent years. Influenced by the low price of raw materials and the high financial pressure of the project side, the industry market as a whole presents a tight situation of upstream and downstream funds, the industry enterprises still have a large number of "advances", the risks and pressures brought by the acceptance of commercial bills still exist, the ready-mixed concrete industry is seriously short of cash flow, and financing is extremely difficult.

3. Regional competition. Competition in the ready-mixed concrete market in all regions of

the province will intensify, especially the low-price competition will be serious. In order to protect the market share, some enterprises will sell at a lower price, and the average gross profit rate of the industry will drop to 12% (15% in 2023). Enterprises need to pay close attention to the market demand and competition situation, optimize the production layout, and increase market share reasonably and legally. Medium and large enterprises and group enterprises have obvious competitive advantages, which can ensure healthy and stable development, while small enterprises are under the pressure of capital and cost, which is difficult to maintain, and gradually appear the situation of stopping production and selling.

2. Characteristics of industry development in 2024.

(1) Summary of the development of key industries in the province.

1. Policy and environmental pressure drive green transformation. Strengthening of

local environmental protection policies: Guizhou Province has implemented the national "double carbon" goal and issued the "Guizhou Green Building Materials Promotion and Application Plan", requiring that the proportion of recycled materials used in new projects should not be less than 25% (higher than that in some regions of the country). Guiyang, Zunyi and other key cities pilot carbon emission quota trading for concrete enterprises, forcing enterprises to reduce emissions. Acceleration of solid waste resource utilization: relying on thermal power plants and iron and steel plants in the province, the proportion of fly ash, phosphogypsum and other industrial solid wastes mixed into concrete is increased to 18% -22%, reducing the dependence on cement. Phosphogypsum-based concrete technology has been subsidized by provincial finance for rural road construction. Policy adaptation: Strive for provincial subsidies for green building materials and participate in bidding for ecological restoration projects.

2. Infrastructure demand and real estate downturn coexist. Supporting demand for

major infrastructure projects: Extension projects of Chengdu-Chongqing Economic Circle: Guiyang-Chongqing high-speed rail, Wujiang River shipping hub and other projects drive the demand for high-performance concrete to increase by 12%. New energy infrastructure: The construction of wind power base and photovoltaic bracket in Qianxinan, Bijie and other regions promoted the consumption of corrosion-resistant concrete to increase by 25%. Real estate continued to shrink: the new construction area of commercial housing decreased by 15% compared with the same period last year, the capacity utilization rate of commercial mixing stations in Guiyang, Anshun and other places was less than 60%, and some enterprises transformed municipal engineering projects. Real estate accounted for 40% of the concrete supply and demand market in the province (demand decreased by 8%), infrastructure accounted for 50% (increased by 6%, focusing on supporting rural roads and water conservancy), and new energy projects accounted for 10% (new photovoltaic/wind power base demand).

3. The imbalance of regional development and the difference of technology penetration. Agglomeration effect of

core cities: Guiyang and Gui'an New District undertake the construction of big data centers and industrial parks, and the proportion of high-strength concrete above C60 reaches 35% (the average of the whole province is 20%). Zunyi relies on red tourism infrastructure, and 3D printing concrete technology is applied to landscape building components on a pilot basis. The development of remote areas lags behind: due to high transportation costs and scattered projects, traditional C30-C50 concrete is still used in Qiandongnan, Tongren and other places, and the coverage rate of intelligent equipment is less than 30%.

4. Cost pressure and industrial chain integration. Fluctuation in the price of

raw materials: the local policy of restricting the mining of sand and gravel led to a year-on-year increase of 18% in the price, and the dependence on cement outsourcing was high (the production capacity in the province only met 60% of the demand). Acceleration of enterprise integration: Conch Cement and

5. Environmental protection challenges under karst landforms.

Ecological restoration needs: In view of the problem of rocky desertification in karst areas, ecological concrete (permeable, vegetation type) is promoted for slope protection projects, with a provincial-level special procurement scale of 300 million yuan. Transportation and production constraints: The logistics cost in mountainous areas is 20% -30% higher than that in plain areas, and enterprises tend to lay out distributed concrete mixing stations.

6. Coordination of new energy and rural revitalization. Increment of

rural market: Rural revitalization projects promoted the hardening of rural roads and the construction of small-scale water conservancy facilities, and the demand for low-grade concrete increased by 8%. The distributed photovoltaic base is made of lightweight high-strength concrete, and the cost is reduced by 10% compared with the traditional scheme.

(2) Industrial optimization and upgrading urge enterprises to enhance their competitiveness. By increasing investment in science and technology, improving production technology and training internal talents, leading enterprises in the

industry can improve product quality, reduce costs and innovation capabilities, promote product innovation and application, so as to compete for market share and cope with fierce market competition. In addition, enterprises should consider expanding the industrial chain, looking for partners and achieving win-win development. Enterprises should strengthen safety production management, improve staff safety awareness, and prevent production accidents. Government departments should also strengthen the supervision of safety production and quality control, and enterprises should attach importance to the "red line of quality and safety" and strictly enforce safety production regulations. In order to expand market channels,

enterprises can seek cooperation with real estate, infrastructure construction and other fields, expand market channels, and enhance industry influence and brand awareness. We should attach importance to cooperation between industry, University and research institutes, strengthen cooperation with universities and research institutes, and use the resources platform of trade associations to jointly carry out technological research and development and tackle key projects. Enterprises can set up production, teaching and research bases to enhance their innovation ability with the help of talents and scientific research advantages of universities and research institutes.

Strengthen fine management and improve the efficiency of enterprise operation. Enterprises can learn from advanced management concepts and methods, optimize production, sales, management and other links, reduce costs and improve profitability. Through the establishment of enterprise cooperation alliance, resource sharing and risk sharing can be realized. Enterprises can invest and cooperate with other enterprises in R & D to reduce costs and improve competitiveness.

(3) Relying on the industry to promote high-quality development of enterprises.

Industry associations integrate a large number of industry effective resources, enterprises should attach importance to industry strength, through project matching cooperation, technology research and development, industry self-discipline and other effective means, speed up industrial restructuring, speed up the withdrawal of backward production capacity; We will further stimulate the vitality of the main body of enterprises in the industry, enhance the manufacturing capacity and production efficiency of enterprises in the industry, and promote the optimization, upgrading and high-quality development of enterprises.

(4) The work of improving the quality of the industry has achieved remarkable results. Since the implementation of the Provincial

Housing and Urban-Rural Construction Department's Action Plan for Promoting Quality Improvement of Ready-mixed Concrete Industry, the Association has established a linkage mechanism for the work of provincial and municipal trade associations. Actively cooperate with the Provincial Housing and Construction Department and Tongren City and other local housing and construction departments to carry out "industry self-correction and self-examination", "quality improvement training course", "inspection of key projects and ready-mixed concrete enterprises", "on-site quality improvement management and control door-to-door service" and other initiatives to promote related work, and have achieved good results in promoting the high-quality development of the ready-mixed concrete industry in the province.

The Association issued the Summary Circular on the Special Inspection of Ready-mixed Concrete Quality of the Provincial Housing and Construction Department in 2024 to the members of the industry to help the members improve their work in a timely manner. Local housing and construction departments actively promote the steady improvement of "quality improvement work", from comprehensive inspection, key inspection to find problems, formulate rectification plans, carry out systematic training of technicians and managers, and sum up experience to improve quality management level, ready-mixed concrete enterprises in many areas of the province have been in quality control and management. It also provides reference experience for the work of other prefectures, and is worth popularizing and applying in the whole province.

III. Overview of relevant work in the ready-mixed concrete industry in 2024.

(1) Strengthen multi-party linkage to promote the construction of talents in the industry.

1. Relying on the competent departments of the Provincial Housing and Urban-Rural Construction Department, the Provincial Industry and Information Technology Department and other industries, several rounds of industry-related policy publicity and skills training activities have been held, such as the "Training Course on Improving the Ability of the Responsible Persons (Technology) of Premixed Concrete Enterprises in Guizhou Province" attended by senior managers of ready-mixed concrete enterprises throughout the province. Promote the professional skills of relevant employees in the industry.

2. The ready-mixed concrete industry has increased interaction with the sand and gravel industry and the cement industry to "select materials and improve quality" from the source. Carry out various forms of technical lectures, on-site observation activities, basic technical personnel training and other activities to mobilize the enthusiasm of industry participants, and form a better atmosphere for industry cooperation.

(2) The work of green production evaluation and identification of ready-mixed concrete continues to be effectively promoted. Under the guidance of

Guizhou Provincial Department of Industry and Information Technology, Guizhou Provincial Department of Housing and Construction and the active promotion of Guizhou Provincial Ready-mixed Concrete Industry Association, a relatively perfect evaluation system and scheme involving third-party evaluation agencies have been established, which is excellent in the national green production evaluation work. It has made the characteristics suitable for the development of Guizhou Province. The relevant promotion work is as follows:

As of December 2024, there are 43 three-star enterprises, 45 two-star enterprises and 40 one-star enterprises in the province, totaling 128 star-rated enterprises.

(3) The quality of personnel training and service in the industry has been significantly improved.

1. The Association has organized the "Training of Ready-mixed Concrete Testers in Guizhou Province". By December 2024, 25 training sessions have been held for enterprise testers in the ready-mixed concrete industry in Guizhou Province, totaling more than 8,300 people, which has consolidated and improved the professional knowledge of enterprise testers and improved their skills and qualities.

2. Organize and carry out the professional skill level identification of concrete workers in 2024 to help improve the professional skills of the industry and build a talent team.

3. Set up an expert group to carry out "door-to-door service for members" for experts in technology, management, facility planning and evaluation in the industry to ready-mixed concrete enterprises in the province, so as to truly implement the service work of the industry and enterprises and make practical results, which has been unanimously praised by enterprises and industries.

(4) Strengthen the professional construction of trade associations and improve their service capabilities.

1. Build the "Guizhou Ready-mixed Concrete Industry Information Management Platform" and "Guizhou Ready-mixed Concrete Industry Association APP" small programs in an all-round way, complete the collection of detailed basic data of industry enterprises in the province, and establish database management. Actively participate in the construction of industry-related large data platform organized and constructed by the Provincial Department of Industry and Information Technology and the Provincial Department of Housing and Construction, comprehensively grasp the industry production, environmental protection, business strategy, enterprise layout planning, etc., and provide data support for the development of ready-mixed concrete industry in the province.

2. Strengthen the cooperation with the College of Materials and Engineering of Guizhou Normal University, Guizhou Electronic Information Vocational and Technical College, Guizhou Construction Vocational and Technical College, Guizhou Railway Technician College and other scientific research institutions, and establish the cooperation mechanism of "production, teaching and research + industry".

3. Attach importance to the integration of Party building, trade union building and association business, and strengthen the leading role of Party building. The Party Branch of the Association was awarded the "Four-Star Party Branch of Provincial Social Organizations in 2024". Actively carry out the work of trade unions in relevant industries, provide suggestions and suggestions for the ready-mixed concrete industry, and help the high-quality development of the ready-mixed concrete industry in the province.

4. Strengthen social responsibility and contribution. Guizhou Ready-mixed Concrete Industry Association has been to Qunfeng Village of Langdai Town for many times to carry out rural revitalization project promotion activities with the villagers'committee of Qunfeng Village of Langdai Town, as well as special fund donation activities for rural revitalization, and actively participate in rural construction revitalization and poverty alleviation mutual assistance projects guided by national policies.

4. Problems and difficulties in the ready-mixed concrete industry of the whole province in 2024.

(1) Serious overcapacity and lack of rational planning and layout. The construction of most ready-mixed concrete mixing stations

in the province lacks scientific layout planning, and the management is seriously out of control, resulting in unreasonable site layout, fierce regional peer competition, market supply is greater than demand, and excessive idleness and concentration of production capacity.

(2) There are still incomplete qualification certificates and illegal operations. In

2024, through several rounds of inspection by the housing construction department, most of the ready-mixed concrete production enterprises in the province have obtained the business license, production qualification, environmental assessment, land use and other procedures required for the production of ready-mixed concrete, but there are still illegal mixing stations and project site stations with incomplete licenses, which seriously disrupt the market order.

(3) The low cost of offenders is prominent, and the "bad currency expulsion effect" is rampant. Legitimate enterprises in the

industry must have all kinds of procedures and maintain reasonable profits through various "open source and throttling" measures, but there are still many illegal enterprises outside the supervision, some of which only have business licenses, work for commercial and trade companies, seriously occupy legitimate enterprises with large investment, and the "bad currency expulsion effect" frequently disrupts the market. And through "tax evasion", it causes the loss of national tax revenue, and quality accidents continue, endangering the safety of people's lives and property, bringing great hidden dangers to the quality of concrete construction projects, bringing great pollution and destruction to the ecological environment, and causing a large number of tax losses to local finance.

(4) It is difficult to promote the intensive, green and intelligent development of the industry. Although there are a certain number of leading enterprises in the ready-mixed concrete industry

in the province, it is still dominated by small and medium-sized enterprises, which makes it difficult to form a large-scale development and limits the intensive, green and intelligent development of the industry. The phenomenon of product homogeneity is serious, which is quite different from the requirement of high-quality development of manufacturing industry. The management consciousness of some enterprises is not combined with the national green environmental protection concept and intelligent manufacturing requirements, so it is urgent to speed up the low-carbon adjustment of industrial structure, energy structure and transportation structure, and realize the transformation and upgrading of traditional industrial intelligence.

(5) Lack of market funds and high pressure on accounts receivable.

In 2024, the average repayment rate of ready-mixed concrete enterprises in the whole province was 37.12%, which was 11% lower than that of the previous year. In 2024, the repayment situation of concrete enterprises was poor, which was mainly due to the shortage of funds in the industry. Enterprises generally reported that the time line of capital withdrawal was lengthened, and there were many phenomena of offsetting debts with assets in the industry. Concrete market price objectively reflects that the space for capital relief is difficult to offset the space for market demand decline, the business volume of upstream and downstream enterprises has declined sharply, the capital chain is tight, and there are widespread problems such as difficult repayment, frequent bounce of commercial tickets, difficulty in cashing and long recovery cycle. To be more precise, 2024 is not only a problem brought about by the contraction of the real estate stock era, but also a regional contradiction between supply and demand and competition. Under the background that the shortage of funds has not been alleviated, concrete enterprises strive to reduce the cost of raw materials and establish the possibility of strategic cooperation. The first is to reduce the cost of the whole life cycle, the second is to maintain long-term and stable supply support, and the third is to give full play to their respective advantages in the industrial chain and seek more diversified cooperation opportunities.

(6) Insufficient technological innovation and lack of core competitiveness.

In most industries, the degree of informatization of enterprises is not high, and the degree of informatization of production, management, sales and other links is not high, let alone intelligent, which affects the efficiency of enterprise operation. The lack of awareness of industry chain synergy and the lack of synergy between upstream and downstream enterprises in the ready-mixed concrete industry chain affect the overall efficiency and competitiveness of the industry chain. Enterprise brand awareness is not strong, lack of core competitiveness, easy to fall into vicious competition such as price war. Enterprises lack innovative development ideas, blindly pursue short-term interests, low investment in scientific and technological research and development, and lack of means to reduce costs and increase efficiency. The awareness of green building materials certification is insufficient, the enthusiasm of solid waste application is not high, and the core competitiveness of enterprises is limited.

5. Opinions and suggestions on the development of the industry in 2025.

(1) Strictly abide by self-discipline conventions and build a fair market mechanism for the industry.

Industry enterprises should firmly establish quality awareness and contract awareness, strictly abide by the Convention on Industry Self-Discipline, always pay attention to the credit situation of upstream and downstream ends, guard against contract traps, study and judge operational risks, and refuse to accept business tickets of risk enterprises. Based on the principles of honesty, trustworthiness and fair competition, enterprises in the industry should strictly abide by the law in their production and operation activities, avoid directly or indirectly engaging in monopolistic acts prohibited by the relevant provisions of the Anti-monopoly Law, jointly build a fair market operation order, unite high-quality enterprises in the industry to resist low-price competition below cost, and include illegal enterprises in the "list of dishonesty".

(2) Strengthen brand, promote the development of "industrial chain cluster" and improve comprehensive competitiveness. Leading enterprises and high-quality enterprises are

encouraged to extend the industrial chain to aggregate, dry-mixed mortar, prefabricated components, pervious concrete and other businesses, actively build a three-in-one green smart factory, open up a new development model of the whole industrial chain, solve the problems of raw material quality and supply guarantee, and meet the increasingly refined, complex and diversified needs of terminal products. Promote business model innovation, promote group development, give full play to the advantages of scale and raw material procurement, product research and development, engineering supply, technical services and other advantages, combine upstream raw material industry, downstream pouring professional construction, build quality brand and brand alliance, and promote the healthy development of the market.

(3) Increase the connection with the work of relevant government departments to reflect reasonable demands.

Actively striving for government policy support, it is suggested to establish a supervision mechanism led by the competent government departments and participated by trade associations, resolutely ban unqualified and illegal ready-mixed concrete production enterprises, improve the resource service level of trade associations, and enhance the quality of self-discipline work in the industry; We will continue to request government departments at all levels to incorporate the healthy and high-quality development of ready-mixed concrete into the overall planning of local governments at all levels, and actively strive for the inclusion of green, intelligent and high-end advanced manufacturing technologies and equipment in the national industrial guidance catalogue. The difficulties and problems faced by enterprises and industries are reflected in the formation plan of trade associations to relevant departments and followed up.

(4) Implementing the responsibilities of trade associations and improving the service quality of the industry.

Industry associations should always pay close attention to the national industry policy dynamics, carry out policy research, provide decision-making suggestions for the government, and provide policy interpretation for enterprises. Actively participate in the policy implementation of relevant government departments, improve the quality and level of rationalization proposals, enrich service functions and consolidate service quality. Industry self-discipline work should mobilize the whole staff of industry enterprises to participate in and jointly maintain, gather industry associations and regional alliance platforms, give full play to the positive synergy of platforms, promote the development of industry platforms, unify ideas, reach consensus, and strengthen communication and coordination; Resist monopolizing the market in any form or disrupting the market order by means of unfair competition, oppose vicious price competition, encourage large enterprises to play a leading role in "benchmarking", actively assume social responsibility, safeguard the common interests of the industry, and jointly promote the healthy and high-quality development of the industry.