Development and Change of China’s Wood-based Panel Industry in the Past 40 Years of Reform and Opening-up Part 5
Date of release: 2019-1-25 ,Special thanks to the Original source of http://www.wood168.net/woodnews/51265.html .
(The author is Qian Xiaoyu, Vice President of China Forestry Industry Association.) Source: China Green Times
2011-2018: Wood-based panel industry strides into 3.0 era
In 2012, the world economy entered the post-financial crisis era, and China’s economic development entered a new normal. The economy changed from high-speed growth to medium-high-speed growth, and the driving force of growth shifted from investment and factor-driven to innovation-driven. In 2014, the State Council proposed “mass entrepreneurship and innovation”. In the same period, wood-based panels enterprises are generally faced with rising labor costs, rising raw material prices, rising financing costs, improving environmental protection requirements, and declining profitability. With the increasing pressure of survival and development, innovation and upgrading become the only way for the survival and development of wood-based panel enterprises.
At the end of 2013, China’s plywood and fiberboard futures market opened, providing new opportunities for enterprise restructuring and industrial upgrading. Through the leverage of financial capital to guide enterprises to merge and reorganize and establish a standardized corporate governance structure, the concentration of wood-based panel industry has increased significantly, and the overall industry has changed from scale expansion to quality improvement. Wood-based panel enterprises improve TFP by strengthening technological innovation, management innovation, product innovation, business model innovation, and optimize resource allocation by utilizing the power of capital market, thus speeding up the pace of transformation and upgrading. While eliminating backward production capacity, new products such as soybean-based formaldehyde-free adhesives and environmentally friendly PP decorative films have been developed, showing a trend of moving from low-end to high-end in the value industry chain and adjusting from traditional industries to emerging industries. A number of large and medium-sized wood-based panels enterprises with well-known brands and core competitiveness, leading the industrial chain upstream and downstream enterprises to divide and integrate win-win, from “Limited Company” to “Group Company”, enterprise clusters began to emerge, stepping into the 3.0 era of wood-based panels industry.
In recent years, with the slowdown of China’s macroeconomic development, the wood-based panel industry has entered the stage of idle adjustment and development. The annual average growth rate has gradually decreased from 20% to less than 10% in the first decade of the new century. Wood-based panel production increased from 200 million cubic metres in 2011 to 300 million cubic metres in 2016 and dropped to 294.86 million cubic metres in 2017, the first negative growth in 20 years. In 2018, international trade frictions continued, especially Sino-US trade frictions involving tariffs on all wood-based panels and downstream wood products such as furniture, flooring and wooden doors, which had a greater negative impact on China’s wood-based panels import and export.