1. Analysis of the Overall Situation of the Shelf Market
In 2023, the overall development of the logistics equipment market was tepid. Compared with the rapid development in previous years, the growth momentum slowed down significantly, which was consistent with the "steady growth" we predicted a year ago, but the increase was less than expected. With the lifting of epidemic restrictions, the expected rapid economic growth did not come, and its impact was lasting and far-reaching. Coupled with the containment and containment of Western countries, many companies even regressed, and the overall economic recovery was weak, which also dragged down the development of the logistics equipment market.
Although the overall development speed of the logistics equipment industry has slowed down, the shelf industry still maintains its basic plate and seeks development in adversity. It has achieved counter-trend progress in many fields. It is a bright spot in the entire logistics equipment industry and even the entire manufacturing industry. It can be seen that the shelf industry has a strong market adaptability. Under different macro environments, there will always be different demands.
2. Shelf type analysis
In 2023, automated high-rise shelves (AS/RS) maintain an absolute leading advantage. Not only are there many projects, but also large-scale projects. There are more and more super-high and super-heavy projects. Some projects can exceed 100 million yuan, which is unattainable by other types of shelves. In our company, AS/RS business accounts for 80% of sales, and there is a trend of continued growth. In the field of large warehouses, automated high-rise shelves are the best choice. They are a combination of high storage density, high access efficiency and high flexibility. They can also adapt well to the wave of intelligence. They can not only match with stackers, but also with shuttle vehicles, four-way vehicles and other types of access equipment. The shelves are varied in form, with strong flexibility and competitiveness, and are the undisputed king in the market.
Among the automated high-rise shelves, there is a great demand for integrated warehouse and shelf. Although it is difficult to build this type of shelf due to domestic regulations, many owners have shown great interest in this type of shelf. They insist on breaking through various obstacles despite knowing that it is difficult. This fully proves the superiority of integrated warehouse and shelf. After all, it has strong advantages in terms of construction period and cost. It is just that the lag of relevant domestic standards has formed a certain obstacle to the development of integrated warehouse and rack.
The four-way garage system has developed rapidly in recent years. The four-way car can realize two-dimensional operation, low energy consumption, and has the ability of multi-layer and multi-car collaborative entry/exit operation. It has gradually occupied a mainstream position in the intensive storage market and has begun to gradually replace the mother-child car system and the two-way shuttle car system. According to rough estimates, the total sales of four-way cars in my country will exceed 3,000 units in 2023, which is equivalent to the market size of the entire four-way car system (including shelves) of about 1.5 billion to 2 billion yuan, which is already a very large market. Moreover, the four-way garage has flexible layout, low investment, and quick results. It can adapt to warehouses of different types and layouts, and the system has strong scalability. The number of small cars can be adjusted at any time. It can play a huge role in the transformation of old warehouses. We believe that it has a very good market prospect.
Compared with the good development of automated high-rise shelves and four-way garage systems, other non-automated small shelves (referring to low-height shelves, which have nothing to do with the scale of the project) are still concentrated in beam-type forklift shelves with a wide range of applications, as well as shelves and loft-type shelves that are widely used in e-commerce, clothing and other fields. In these fields, the demand for small shelves is huge, and Xiyin is one of the best. As a representative of fast fashion e-commerce brands, its large storage needs and customized shelf needs have had a significant impact on the entire shelf industry.
Traditional beam-type and shelf loft-type shelves have extremely fierce competition and relatively low profit margins due to their low entry barriers and simple structures, but their short construction period and fast payment are still the only choice for shelf companies to maintain excellent cash flow. In addition, there are still many projects in some fields of ultra-long profiles and ultra-large materials for high-rise automated cantilever shelves.
As for other types of shelves, such as various types of intensive shelves, they have been squeezed out of the historical stage by the four-way garages with a higher degree of automation, and it is difficult to find traces.
3. Regional and industry distribution of the shelf market
Consistent with previous years, the economically developed East China and South China are still the main areas of shelf demand. According to our company's data, they account for more than 60%. Other regions such as Central China and Southwest China have also expanded their shelf markets due to the influx of a large number of industries and the good development of the advantageous industries in these regions in recent years. The development of other regions is relatively flat.
Business expansion in overseas markets is no longer easy. As Western competitors increase their competition, Chinese local shelf companies have gone overseas in large numbers and deeply participated in market competition, making the Southeast Asian market a red ocean today. For Chinese companies, the domestic environment is not good enough, and going overseas is the only way, which is also foreseeable.
From the perspective of industry, some explosive industries that have emerged in recent years, such as petrochemicals, solar energy and new energy, and alcoholic beverages, have basically entered the end after large-scale construction in 2023. There may be no major moves in the short term, and their industry construction is basically completed. However, traditional strong areas such as food and beverages and machinery manufacturing are developing relatively well. In general, traditional advantage areas still maintain their advantages, and emerging industries also have outstanding performance. The industry as a whole is basically stable and has achieved steady growth.
4. Development of industry enterprises
The overall market size of shelves will increase in 2023, but it is still in a state of "more monks and less porridge". Moreover, out of fear of uncertainty in the overall environment, major shelf companies are desperately grabbing orders. The fierce price competition among shelf companies has reached a historical extreme, which has never been seen in the development of China's shelf industry for more than 30 years. In such an atmosphere, even the top companies are inevitably trapped in the quagmire of price competition. The prices of some projects are very low, and the profits of projects are greatly compressed, highlighting the word "volume". Companies often do not make less projects but make no money.
However, no matter from which angle, low-price competition is a poison to quench thirst. Head companies should have the responsibility and responsibility to jointly maintain a good competitive order and lead the healthy and orderly development of the entire industry.
In addition to several well-known leading enterprises, there are many shelf companies in China. They may not be well-known, but they are at the forefront of the industry in small shelves and export fields. They have not "rolled" in the domestic market, nor in the big projects that everyone is scrambling for. Instead, they rely on their own advantages and reliable sales channels to achieve an efficient development path and develop their own characteristics. Their sales cannot be underestimated.
Outlook for the shelf industry in 2024
Looking forward to 2024, the overall environment is still not clear enough. According to the trend shown at the end of 2023, economic development in 2024 will still encounter many tests, and it will even be more difficult than in 2023. As for whether there will be strong and effective measures to promote the economy, and how long this unfavorable inertia will continue, it remains to be further observed. In addition, the adverse external environment cannot be ignored. For example, some overseas projects of our company have been stranded due to political factors. This uncertainty caused by geopolitics will become more common in the future. In 2023, the factors affecting the overseas environment have not only not been eliminated, but are also intensifying. For example, the Sino-US confrontation, the Russian-Ukrainian war, the chaos in the Middle East, and the turmoil in the Taiwan Strait have cast some shadows on the development of overseas projects.
However, we believe that "it is not easy to do, but we must do it, and there will be no chance if we don't strive for it." Based on this tone, we predict and look forward to the development of the shelf industry in 2024.
Based on many years of experience in the industry, we believe that the shelf industry is a very adaptable industry. Although the situation in 2024 is not very clear, all major industries related to national economy and people's livelihood will have the demand for logistics and warehousing construction, and these industries are less affected by the overall environment; in addition, the country is also taking a series of economic incentives. Many industries will take action and actively increase investment, and many of the investments will also flow into the logistics and warehousing fields, which is undoubtedly a big benefit for the shelf industry. According to the market situation currently grasped by our company, it is preliminarily judged that the shelf market in 2024 will most likely continue the trend of 2023, maintaining stability with slight growth. The variable is in the overseas market. Major domestic logistics and warehousing companies are scrambling to go overseas. Although there is a situation of intensified competition, it has also expanded the Chinese market and increased the visibility of Chinese companies. This is beneficial to the overall competitiveness of Chinese shelves. I hope that Chinese companies can occupy more market share overseas and grow bigger and stronger together.
In addition, the four-way shuttle logistics system will occupy an increasingly important position. High-quality development requires the application of high-tech products. In the shelf industry, the four-way garage system has gradually entered the stage of technological maturity. Although it still faces some problems, they can be solved through technology upgrades and software development. Its flexibility is much better than other types of intensive shelves. Therefore, in the short term, the development of the four-way garage will be relatively good in 2024; in the long run, it should dominate the field of intensive warehousing, and even get some market share of traditional non-intensive warehouses.
Jiangsu Mingya Commercial Equipment Co., Ltd is manufacturer of various types of shelves, we can make Supermarket shelves, Convenient store shelves, Storage Shelves, Fresh Shelves, Pharmacy shelves, Snack shelves as customers request, any questions or any special requirements please feel free to contact us:
Lorena
+86 15366416606(Whatsapp&Wechat ID)
Email: market@mingyashelves.com