On the centenary of the founding of the Communist Party, China's infrastructure construction has undergone earth-shaking changes. The "14th Five-Year Plan" period is the historical convergence period of China's "two centenary" goals, and it is also an important period of opportunity to fully embark on a new journey of building a modern and powerful socialist country in an all-round way. During this period, the state promulgated the "Outline" of the "14th Five-Year Plan", which pointed out the direction for the future development and transformation and upgrading of engineering enterprises, and was the compass for engineering enterprises to formulate their own development plans. Let's talk about the enlightenment that the "Outline" has brought to the engineering industry from the three levels of macro, meso, and micro.

1. The macro level

1. The premise of development has changed

(1) Two major drivers of economic development stall

McKinsey once released a research report on the global economy that the contribution of global economic growth is based on technological dividends and demographic dividends. From the perspective of technological dividends, the world has experienced 3 industrial revolutions and 5 technological waves in the past 300 years. The time interval between each industrial revolution is about 100 years, and the maintenance time of major technological dividends is only about 55-60 years. After the technology stabilized, capital gains decayed, and the economy maintained a medium-to-high growth rate, and then entered a period of low-speed growth and recession that lasted more than 40 years. When this round of technological dividends enters a period of recession and the next round of technological revolution has not yet come, the contradictions will become prominent.

From the perspective of the demographic dividend, in the past 70 years, the contribution of the labor force growth brought by the demographic dividend to the economic growth rate can reach at least 30%, but since the 1970s, the population growth rate of the world’s major economies has been declining rapidly. . After 2000, the global population growth rate fell by 1%, and some even showed negative growth. Therefore, the demographic dividend no longer exists. The two major driving forces of world economic development-population and technology are all caught in a quagmire of double decline.

(2) Three major crises appear

After the two major drivers of world economic development stalled, the new crown epidemic has swept across again.

The first crisis: the debt crisis

With the release of zero interest rates and even negative interest rates, global debt has been pushed to its peak again. Once the zero interest rate is recovered, the collapse of the debt is a highly probable result.

The second crisis: the crisis of the gap between the rich and the poor

Negative interest rates, zero interest rates, and low interest rates are inherently more beneficial to the government, institutions, and the wealthy, and it is easier to complete "money making money". On the contrary, those who have no assets, no endorsements, and no credit capacity will be thrown out of the car.

The third crisis: the crisis of social instability

For example, India took advantage of China's fight against the epidemic, frequently deployed troops to the border, and took the initiative to provoke conflicts. Growth stalls and the gap between rich and poor have eroded the original stable ecology.

2. The future situation will become more complicated. From the perspective of Sino-U.S. relations, the future form is becoming more and more complex, and it cannot be changed in the foreseeable future.

3. Pay attention to and study the three modernizations, and use relatively mature technologies and tools. For engineering companies, the macro trend should pay close attention to the three modernizations mentioned in the "Outline". First: For green, digital, and intelligent, engineering companies must pay more attention to and research. Second: Each engineering company should appropriately increase its investment in science and technology

4. The industry has gradually matured, differentiation has become inevitable, and competition has become the main theme. The different subdivisions of the engineering industry have been greatly differentiated in the past ten years or so, as follows:

The first one: declining industries. For example, investment in such industries as hydraulic engineering, thermal power, coal, and metallurgy may never return to the historical high-speed growth state. The second: a stable industry. For example, the output value of such industries as housing construction, transportation and municipal administration, and infrastructure is currently relatively stable, but it may become the current surplus industry in 10 or 20 years. This is something that engineering companies need to be vigilant about.

Second, the meso level

1. Focus on areas where wealth is concentrated and investment density is high

According to the regional distribution map of China's fixed asset investment in 2019, places with large total fixed asset investment in China are generally located in the eastern and southern regions, while the total investment in northeast and northwest regions may be less than 1/5 of the eastern coastal region. .

2. The dividing line between north and south of China

Comparing the top ten cities north of the Yangtze River with the top ten cities south of the Yangtze River based on the 2019 data, the economic aggregates of other northern cities are basically 1/2 of those of the southern cities, except for the small gap between Beijing and Shanghai. It can be seen that the gap between the north and the south is very obvious. For engineering companies, they must focus on areas where wealth and investment are strong.

3. Focus on the positioning of city functions, understand the city, serve the city, and cultivate the city deeply

The development of a city is related to its industry, economy, education level of the population, culture, etc. Therefore, for engineering companies, studying the stage of the city can determine the direction of its future urbanization investment.

4. Keep up with the national development direction and keep up with industrial upgrading

The current industrial transfer is generally based on three gradients: the first gradient: migration to countries in Southeast Asia, Africa; the second gradient: migration from the eastern region to the central and western regions; the third gradient: migration from urban agglomerations to surrounding areas.

For engineering companies, we must pay attention to China's industrial migration and industrial upgrading. For example, a general contracting company that mainly engages in electronic factories may follow the migration of the industry and follow its customers from Guangdong to Henan and then to Guizhou. Therefore, industrial migration and upgrading will have a profound impact on the future development of the company.

5. Find the right position and give full play to the advantages

Looking at the final outcome of the development of China's construction industry, there will only be three types of companies in the industry in the future: one is a single-digit super large platform, the other is a two- to three-digit industry leader, and the third is tens of thousands, hundreds of thousands. Designed for small and micro enterprises. Engineering companies need to find their own positioning and give full play to their advantages.

Third, the micro level

1. The matching of resources and capabilities is the foundation for a stable and long-term business

In theory, more than 80% of enterprises are suitable for analytical strategies in the formulation of corporate strategic planning, and only a few enterprises can adopt constructive strategies. The constructive strategy is to construct what the enterprise will become in the next 5 or 10 years, regardless of its current scale, resources and capabilities. Analytical strategy combines the company's own resource capabilities and external market conditions to consider the formulation of target strategies. No matter how high or large the company's strategy and goals are, the corresponding organization, capabilities, and resources must match them, so as to ensure the effective implementation of the strategy.

2. Focus on the core competitiveness of the company

"Continuous innovation ability", "market-oriented management mechanism", "continuous corporate culture", etc., are all the keys to a company's continued success in competition.

3. Internal focus on the matching of production relations and productivity, external focus on customer experience

Engineering companies should pay attention to the content that customers care about. For example, customers often want lower costs, faster response, better quality, better service, and higher stability.

4. Attach importance to corporate organizational capacity building

From a theoretical point of view, there are only three strategies for any company: differentiation strategy, focus strategy, and total cost leadership strategy. At present, what I hear most in enterprises is that human resource management is too difficult. In the future, enterprises must think about human resource management at an unprecedented height.

Keywords: infrastructure construction, infrastructure construction, domestic engineering news, infrastructure engineering news

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