Assembly decoration: industry revolution, obvious advantages

1. Assembly decoration is a new way of decoration with industrial thinking.

Assembly decoration, also known as industrial decoration, refers to the use of dry construction method, the factory production of interior parts in the field of combination and installation of decoration methods. Assembly decoration has the industrial thinking of standardized design, industrial production, assembly construction and information coordination.

Judging whether the decoration method is an assembled decoration should start from its technical characteristics and summarize it in the following three aspects:

One is the dry method of assembly.The so-called dry method, that is, to avoid the traditional decoration methods used in gypsum putty leveling, mortar leveling, mortar bonding and other wet operations, and instead use anchor bolts, support, structural viscose and other ways to achieve support and connection structure.

Two is the separation of pipeline and structure.That is, the equipment and pipelines are not embedded in the house structure, but filled in the gap between the six surfaces of the assembled space and the supporting structure.

Third, parts integration customization. Component integration is the integration of multiple discrete components and materials into an organism through specific manufacturing supplies, with improved performance and easy delivery and assembly. The customization of parts emphasizes that although the assembly decoration is industrialized production, it still needs to meet the personalized customization, so as to avoid secondary processing on site.

2. Compared with traditional decoration: "Heavy factory, light site, more, faster, better and less"
The disadvantages of traditional decoration are many, and the industry needs to be upgraded urgently.

Traditional decoration methods have been popular in China for a long time. There are many on-site links, many types of work, serious dependence on manual operations, time-consuming, and difficult to guarantee quality. The prevalence of "decoration guerrillas" in China has obviously restricted the development of the decoration industry. Site management is difficult to become most of the decoration company management radius is limited, the scale is difficult to break through the main obstacle, manual work rely heavily on the traditional decoration industry to enter the low threshold, the industry competition pattern is poor important factors. Specifically:

First, there are many common quality problems in decoration.The common problems of traditional decoration houses, such as mold on the wall surface, moisture and powdering on the wall top, peeling off and so on, are all caused by the difficulty of controlling the quality of traditional wet operation. Uneven ground, water and electricity pipe rupture and other problems are all caused by poor construction accuracy.

Second, there are many hidden dangers in the decoration process.As the traditional decoration will partially destroy the protective layer of the main structure, wall cutting and other behaviors are more likely to cause structural safety problems (such as Quanzhou hotel incident), the on-site construction process is many, the process is complex, resulting in many hidden dangers.

Three is the decoration of heavy environmental pollution.The content of formaldehyde in traditional decoration materials is high, which is easy to cause indoor pollution. According to relevant research results, the number of deaths due to indoor pollution in my country reaches 111000 every year, and 42.1 of the total number of newly added children with congenital disabilities of 80 to 1.2 million are related to indoor air pollution. At the same time, because the life cycle of the interior decoration is different from the life cycle of the building structure, the former is 5 to 10 years, the latter is 50 years, so the interior decoration must face the second transformation. However, due to the combination of traditional decoration and the main structure, the transformation will inevitably smash and chisel, resulting in a large amount of construction waste and environmental pollution.

Four is a serious waste of material resources. The traditional decoration consumes a large amount of materials during the first decoration, and the secondary renovation causes more waste of materials. According to the research of "Design and Construction of Assembled Decoration", the annual loss caused by the secondary decoration is more than 30 billion yuan.

Assembly decoration is "more, faster, better and less" with obvious advantages.

The prefabricated decoration perfectly solves the drawbacks exposed by the traditional decoration. Compared with the traditional decoration, it has the characteristics of "more, faster, better and less", and its advantages are very obvious.

From the point of view of the project operation process, the program stage and construction stage of assembly decoration are advanced, and the design and construction are synchronized with the building scheme. The pre-design stage will significantly improve the design capability requirements for the integration of building structure and decoration. Building Information Model (BIM) is an important auxiliary tool for building integrated design, and enterprises with technical accumulation in BIM will have a better competitive advantage in the assembly decoration industry competition. Pre-construction phase, cross construction with the main structure. All construction work in the traditional decoration method is completed on site, while the assembly decoration divides the original construction work into two parts: factory parts production site installation. Compared with the traditional method, the assembly decoration is "heavy on the factory and light on the site".

From a product point of viewThe industrial thinking design concept of assembly decoration splits the eight decoration modules into a variety of parts, and the decoration company provides several options for each part, thus forming personalization in standardization and "more" product selectivity ". The design can be completed by a better team, and the cost can be shared by all users who choose the system. Compared with the traditional decoration design, the assembly decoration design is more cost-effective. Parts are manufactured in factories and only installed and constructed on site. The decoration accuracy is greatly increased to millimeter level, the influence of human factors is greatly reduced, and the decoration quality is more easily guaranteed, "good and economical".

From the construction point of viewAs the assembly decoration is divided into two parts: the factory parts production site installation, the factory parts production does not affect the progress of the project, and the site installation requires all dry construction, no secondary processing, so the construction cycle is greatly shortened compared to the traditional way. According to the experience data of Beijing affordable housing center, the construction period of a 50 square meter public rental housing with prefabricated decoration only needs 6 days, while the traditional decoration period is 30 days, and the construction efficiency is significantly improved.

From a material point of view, assembly decoration using calcium silicate composite board, rock wool and other environmentally friendly materials, suppliers basically achieve zero formaldehyde, compared to traditional decoration more environmentally friendly. According to the research results of "Analysis of Assembly Residential Interior Technology and Cost", the direct cost of assembly decoration comprehensive materials is still 11% higher than that of traditional decoration, but the comprehensive economic benefits of the project will be offset indirectly by labor cost savings and lower financing costs.

From the point of view of operation and maintenanceAs the assembled decoration parts are all installed by on-site dry method, it is very convenient to replace and repair the parts in the later period, and the connecting bolts can be removed directly. The design method of separating the pipeline from the structure will not damage the main structure in the later period of pipeline maintenance and replacement. Therefore, the maintenance cost of assembly decoration is relatively low, which can be described as "province".

Assembled decoration will lead the industry pattern to change, and the market scale is expected to exceed 620 billion yuan.

1. The current dilemma of the decoration industry: large industries, small companies, leading enterprises growth is limited.

The scale of the decoration industry exceeds 4.2 trillion yuan, and the market share of leading enterprises is low. According to the data of China Building Decoration Association, the total output value of China's decoration industry has reached 4.25 trillion billion yuan in 2018, with a year-on-year growth rate of 7.9. The industry is huge, but growth has slowed since 2013 to below 10%. In terms of the market share of leading companies, the top 3 companies in the industry have a revenue market share of only 1.15 percent in 2018.

The weak in the industry accelerated the elimination, but the competition pattern of "big industry, small company" remained unchanged.According to the statistics of the "Blue Book of Chinese Architectural Decoration" released by the China Building Decoration Association, the number of decoration enterprises in China decreased from 145000 in 2011 to 125000 in 2018, with an overall reduction of nearly 20000 enterprises. In terms of the average output value of enterprises, the average output value was 16.21 million yuan in 2011 and rose to 34 million yuan in 2018, with an annualized compound growth rate of 11.2 percent. We judge that the 20000 enterprises that have been eliminated are mainly low-qualified and small-scale decoration enterprises. However, in terms of the absolute value of the average output value, it was only 34 million yuan in 2018. The average scale of enterprises is still small, and the pattern of "small and scattered" in the industry has not changed.

Severe artificial dependence is the main reason for the limited growth of leading enterprises.. On the one hand, traditional decoration projects mainly rely on manual on-site operations, resulting in extremely low barriers to entry into the industry. Organizing a few workers without professional training can carry out simple on-site decoration construction, which is the main reason for the large number of enterprises in the industry and the small average scale. On the other hand, there are many on-site decoration workers and many types of work, which leads to the limited management radius of the enterprise; after the continuous expansion of the enterprise scale, the quality of on-site management is difficult to be guaranteed, which is the main reason for restricting the growth of leading enterprises.

2. Assembly decoration is a "good medicine" to break the situation, the rapid growth of the industry scale

Directly hit the traditional decoration malpractice pain point, leading enterprises will have a clear competitive advantage.The operation mode of assembly decoration "heavy factory, light site" makes the factory an important link in the quality control of decoration. The factory adopts machine-based production, which avoids the direct impact of workers' technology and experience on the quality of the project, and leading enterprises are also expected to build a moat by rapidly expanding production, establishing scale advantages. At the same time, the assembly decoration site only needs installation workers and electricians, compared with the traditional decoration workers and the number of types of work are significantly reduced, the site management is easier, the factory management is more concentrated relative to the site management, the management difficulty is significantly reduced, is conducive to breaking through the original management radius limit.

The industry is still in its infancy and is growing rapidly in scale.The promotion of prefabricated buildings mainly began in 2017, and prefabricated decoration is a concept born at the same time as prefabricated buildings, and the promotion of prefabricated decoration is later than prefabricated buildings due to the lag in the establishment of the relevant technical specification system. According to the statistics of the Ministry of Housing and Urban-Rural Development, the construction area of newly started prefabricated decoration in 2018 was 6.99 million square meters, accounting for 5.77 percent of the newly started fully decorated construction area; in 2019, the new construction area was 45.29 million square meters, an increase of 547.93 over the same period last year, accounting for 18.97 percent of the newly started fully decorated construction area. Although it started late, it is already on the track of rapid growth.

It is expected that the market size will exceed 630 billion yuan and maintain high growth in the next 6 years.. Assuming that the unit price of decoration per square meter is 2000 yuan, the corresponding market size of assembly decoration in 2018 and 2019 is only 14 billion yuan and 90.6 billion yuan respectively. We estimate that the size of the assembly decoration market will reach 632.7 billion billion yuan in 2025, with a compound annualized growth rate of 38.26.

3. The track becomes wider and the participants are numerous, and the decoration enterprises are closer to the needs of users.

Assembly decoration is still in the initial pilot stage, compared with the traditional decoration of its project operation mode changes greatly, the industrial chain to the parts of the manufacturing extension. At present, there are more participants in the assembly decoration market, and we summarize that there are mainly 5 types of enterprises involved.

One is large real estate developers. As the construction party, the real estate developer has the leading power on the construction and decoration scheme, and it is necessary to participate in the early development of the assembly decoration industry. On the one hand, developers have the dominant power over the construction plan. Some developers locked the house type as early as 3 to 4 years ago, established standardization, and made full preparations for the subsequent research and development and implementation of prefabricated decoration; on the other hand, real estate developers In the industry chain, participating in it under the guidance of the prefabricated construction policy can accelerate the transformation and upgrading of the industry to prefabricated decoration.

For developers, assembly decoration also has a certain attraction. As the decoration scheme is pre-assembled and jointly designed and implemented with the building scheme, real estate developers can meet the index requirements of prefabricated buildings and obtain government subsidies through the coordination of the decoration scheme and the building scheme. Assembly decoration greatly shortens the overall construction period and can be presale in advance, thus accelerating the capital turnover of developers. Developers use their own funds to invest in the research and development of assembly decoration technology and use their own strong voice in the industrial chain to implement assembly decoration at low prices, it is a more favorable party to promote the development of the assembly decoration industry.

Two is the traditional decoration enterprises. Traditional decoration leading enterprises in the field of assembly decoration have been laid out. Traditional decoration enterprises to do assembly-type decoration is obviously more close to the needs of users, is the 5 types of participants in the most easy to achieve assembly-type decoration transformation.

Three is the building materials enterprises. Currently, it is mainly a supplier of assembly decoration parts. This kind of enterprise starts from the supplier of assembly decoration (gypsum board partition wall), and continuously explores the assembly decoration industry chain in depth. At present, the enterprise has basically realized the combination of wallpaper and gypsum board in the factory, thus further shortening the site construction period.

Four is entrepreneurial enterprises. This type of enterprise uses assembly decoration technology and patents as a cutting-in means to provide real estate developers with the whole process of assembly decoration services from design to component manufacturing. Most of these entrepreneurial brands have completed financing separately, and have achieved partial applications in the fields of public rental housing, long-term rental apartments and other projects.

Five is custom home enterprises. Customized home enterprises rely on years of accumulated experience in the customization of cabinets and wardrobes, and have now moved towards the field of full-house assembly and assembly solutions. Some custom home faucets have realized the assembly solution of soft fitting link, and have been tried in the fields of kitchen, bathroom, wall panel, etc., in order to provide integrated solutions such as design customization, production, hard fitting and installation.

4. Top-level design to improve the supply of parts and components to improve the user's reputation precipitation = assembly decoration benign development

According to the statistics of the Ministry of Housing and Urban-Rural Development, although the prefabricated decoration has developed rapidly since 2019, the scope of application is still very limited. The newly started assembly decoration area accounted for only 18.97 percent of the newly started full decoration construction area, and only 1.5 percent of the newly started construction area. We believe that the current assembly decoration industry development is also facing the top-level design to be improved, the limited supply of parts, the lack of user word-of-mouth precipitation and other issues.

First of all, the top-level design needs to be improved, and standardization is a prerequisite for the large-scale development of assembly technology.On the one hand, a large number of decoration standardization should be based on building standardization, and the domestic construction industry has long been accustomed to the owner, design, construction, decoration party division and governance, EPC model, PPP model is gradually changing the industry participants thinking mode, but still need a process. Assembly decoration in the factory processing parts and components, on-site installation only, according to the traditional decoration while decoration design is obviously unrealistic, its requirements for the integration of design, processing, installation to further enhance the need for the whole industry chain coordination. On the other hand, the technical standards for prefabricated decoration have not yet been unified. At present, there are only industry specifications "Technical Regulations for Building Industrialization Interior Engineering" and local specifications such as Shanghai, Zhejiang, and Beijing. Technical standards are not uniform, will affect the quality of the development of the industry.

Secondly, the supply of parts and components is limited, and leading enterprises with economies of scale will lead the development of the industry.Compared with traditional decoration, the main production process of assembly decoration is in the factory, and only installation work is done on site. At present, there are still few manufacturers specializing in assembly decoration parts and components, and there are vacancies in supply. We believe that insufficient supply is the main reason for the high price and low degree of personalization of assembly decoration, and the leading enterprises with scale effect on the supply side will have obvious competitive advantages.

Finally, the assembly decoration started late and developed rapidly, and the user's reputation needs time to settle.Assembly decoration from 2018 to 2019 rapid development, only more than 2 years. As the prefabricated decoration room has interlayers on 6 sides, the housing space will be squeezed to a certain extent, and the construction process seams will be retained for on-site installation and splicing. Therefore, the living experience is different from the traditional decoration, and the accumulation of user reputation takes time to settle. With the continuous advancement of the assembly decoration pilot project, the assembly decoration products will continue to be improved according to the user experience to meet the market demand.

To sum up, we believe that with the gradual improvement of the top-level design, the growth of industry leaders and the precipitation of user reputation, the current problems of assembly decoration will be gradually solved in the future, and the industry will enter a healthy development.