Speech by Vice Governor He Quan at the Provincial Construction Industry Transformation and Upgrade Symposium

2019-11-26

In April last year, the provincial government issued the "Opinions on Accelerating the Development of the Construction Industry and Taking the Lead in Building a Strong Construction Province," and held a provincial construction industry work conference. The overall ideas and goals for the development of the construction industry in the coming period were clarified, requiring the promotion of transformation through development and seeking development through transformation, further building new advantages for the construction industry in our province. The Provincial Department of Housing and Urban-Rural Development convened this symposium to specifically study the acceleration of the transformation and upgrading of the construction industry, which is very necessary and meaningful.

(April 24, 2012)

 

  Last April, the provincial government issued the "Opinions on Accelerating the Development of the Construction Industry and Taking the Lead in Building a Strong Construction Province," and held a provincial construction industry work conference, clarifying the overall ideas and objectives for the development of the construction industry in the coming period. It requires promoting transformation through development and seeking development through transformation, further building new advantages for our province's construction industry. The Provincial Department of Housing and Urban-Rural Development convened this symposium to specifically study the acceleration of the construction industry's transformation and upgrading, which is very necessary and meaningful. Just now, Comrade Zhou Lan from the Provincial Department of Housing and Urban-Rural Development and some responsible comrades from cities, counties, and construction enterprises made speeches, all of which were excellent; a group of leading enterprises also signed pairing assistance agreements with construction enterprises in northern Jiangsu. Next, I will give a few opinions.
1. The pace of development, especially the transformation and development of our province's construction industry, has been continuously accelerating.
  After last year's provincial construction industry work conference, localities, relevant departments, and the majority of construction enterprises earnestly implemented the deployment requirements of the provincial party committee and government, advancing the rapid development of the construction industry in a timely manner and achieving good results, with some new highlights emerging in certain aspects. The main manifestations are "two transformations and two improvements." "Two transformations": First, the overall development approach has accelerated its transformation. Localities and relevant departments, according to the requirements of new situations and tasks, have placed accelerating the transformation of the development mode in a prominent position in the development of the construction industry, integrating the promotion of transformation and upgrading throughout the entire process and all fields of construction industry development, with significantly enhanced coordination and work promotion efforts. Second, the business management mode has accelerated its transformation. Focusing on promoting the transformation and upgrading of the construction industry, the reform of the property rights system of construction enterprises has been continuously deepened, the corporate governance structure gradually improved, and the establishment of a system and mechanism for reasonable equity circulation and orderly shareholder entry and exit accelerated. Actively promoting general contracting and project management contracting, deeply carrying out integration of investment and construction, and integration of design and construction. Effectively strengthening capital operations across the industry, with more than 20 enterprises entering the listing counseling period. "Two improvements": First, the industrial concentration has further increased. Efforts have been made to adjust and optimize the industrial structure, support the development of high-grade qualification enterprises and specialized enterprises, and adjust the proportion of general contracting, specialized contracting, and labor subcontracting enterprises to 31.3:55.6:13.1. The number of construction enterprises with an annual output value exceeding 1 billion yuan and 10 billion yuan reached 214 and 17 respectively, an increase of 38 and 2 compared to the previous year. First-class and above construction enterprises achieved an output value exceeding 996 billion yuan, accounting for 62%. The rapid increase in industrial concentration has promoted the continuous enhancement of the overall strength of the construction industry. In 2011, the total output value of the construction industry in the province reached 1.6002 trillion yuan, a year-on-year increase of 23%. Second, the technological innovation capability has further improved. While strengthening innovation in concepts, processes, and management, more attention has been paid to promoting the construction of a technological innovation system. Thirty-nine enterprise R&D centers have been recognized by relevant departments. In 2011, the total number of invention patents, construction methods, and industry standards created by construction enterprises in the province increased more than twofold year-on-year, with a cumulative total of 18 Luban Awards and 19 National Quality Awards, maintaining a leading national level. Overall, through the joint efforts of localities and construction enterprises last year, the transformation and upgrading of our province's construction industry achieved a good start.
2. Persist in taking accelerating transformation and upgrading as the main line of construction industry development.
  Currently, our province is at a critical stage of comprehensively building a higher-level well-off society and striving to embark on a new journey toward basically achieving modernization. The development of the construction industry has also entered an important period of transformation, breakthrough, and tough battle. Accelerating the transformation of the construction industry's development mode and promoting its transformation and upgrading is an important and urgent task before us. From the perspective of economic and social development trends, our province's construction industry must actively promote transformation. The central government has clearly proposed that the current and future periods should highlight the theme of scientific development and the main line of accelerating the transformation of the economic development mode, guiding all aspects to focus their work on transforming the development mode. The provincial party committee and government have identified eight key projects to be implemented during the 12th Five-Year Plan period, with the transformation and upgrading project listed as the first. The construction industry has a large scale and high industrial relevance, serving as an important support for economic growth and a key area for transforming the development mode. We must closely focus on the theme and main line, actively carry out various tasks of transformation and upgrading, and make greater contributions to economic transformation and upgrading. From the competitive situation of provinces and cities nationwide, our province's construction industry must not fall behind in rapid transformation. Compared with other provinces and cities, although our province's construction industry has maintained leading main indicators for many years, it does not have an absolute advantage. In terms of the number and strength of top enterprises, we are even inferior to some provinces and cities. Particularly noteworthy is that in recent years, provinces such as Zhejiang have successively introduced a series of policies and measures to support the transformation and upgrading of the construction industry, not only significantly accelerating development but also significantly enhancing overall strength and market expansion capabilities. We must establish a strong sense of crisis, work more solidly, and take stronger measures to make efforts and achieve results in accelerating the transformation and upgrading of the construction industry, creating favorable conditions to consolidate and expand our province's leading advantage in construction industry development. From the perspective of achieving the goal of building a strong construction province, our province's construction industry must persistently focus on transformation. By 2015, being the first in the country to build a strong construction province is the goal set by our province. Moving from a large construction province to a strong construction province is a process of qualitative change from quantitative change, not only continuously expanding scale, total volume, and extension but more importantly comprehensively improving benefits, efficiency, and connotation. In building a strong construction province, we still face many bottleneck problems. On the one hand, although our province's construction industry has created brilliant achievements in recent years, the extensive production methods and management models have not fundamentally changed, and problems such as unreasonable industrial structure remain prominent. The level of scale and intensive operation and technological innovation capabilities need urgent improvement. On the other hand, with the continuous acceleration of industrialization and urbanization, the construction industry faces broad development space, but the competition in the construction market has changed significantly, expanding from competition in construction capacity, project quality, and brand reputation to competition in capital operation capabilities, management levels, and technological equipment. Business operations have also expanded from housing construction to infrastructure, from low-end markets to high-end markets, and from single construction operations to whole-process engineering construction management services. Many of these aspects are still "weak points" in our province. We must firmly hold onto our goals, resolutely grasp and implement structural adjustment and transformation promotion work, fight the tough battle of changing the construction industry's development mode and promoting transformation and upgrading, expand development space through adjustment, boost competitive advantages through transformation, and lay a decisive foundation for achieving the goal of building a strong construction province on schedule.
3. Earnestly do a good job in various tasks of the construction industry's transformation and upgrading.
  The provincial government's "Opinions on Accelerating the Development of the Construction Industry and Taking the Lead in Building a Strong Construction Province" clearly states that the current and future periods should follow the requirements of "optimizing structure, expanding fields, and strengthening strength," integrating the acceleration of the transformation of the development mode throughout the entire process and all fields of construction industry development, with more emphasis on structural adjustment and transformation and upgrading, more emphasis on the quality of construction economic development, more emphasis on scientific and technological progress, and more emphasis on energy conservation, environmental protection, resource utilization, and green construction, promoting our province's construction industry to achieve new leaps at a new starting point. Regarding the transformation and upgrading of the construction industry, I feel the key is to make greater efforts in adjusting the construction industry structure, enhancing independent innovation capabilities, improving business management methods, and increasing industrial concentration, truly building the construction industry into a technologically advanced modern industry, an energy-saving and emission-reducing green industry, and a pillar industry with strong driving force. The work needs to focus on the following aspects:
  (1) Focus on promoting the optimization of the construction industry structure. From the current trend of structural changes in our province's construction industry, although the proportion of general contracting enterprises and the output value in the housing construction sector is gradually decreasing, the design, construction, and service capabilities in specialized fields are steadily increasing. However, the vast majority of top-tier enterprises are still housing construction companies, the number of specialized contracting enterprises among first-level enterprises is still small, and enterprises below first-level qualifications generally face issues such as small scale and weak core competitiveness. Due to the unreasonable structure of the construction industry, enterprises of different qualification levels and development stages often enter the same market and undertake similar businesses, leading to vicious competition and unnecessary waste. Therefore, optimizing the structure should be the primary task in the transformation and upgrading of the construction industry. In optimizing market structure, we must seize the opportunity of national infrastructure construction promotion, accelerate the improvement of construction capabilities in transportation, water conservancy, municipal, and railway infrastructure fields. Encourage enterprises to adapt to market demand changes, strengthen special technical reserves in underground space development and utilization, residential industrialization, precision installation, etc., actively expand business to upstream and downstream industries, extend to the high end of the industrial chain, and strive to open new development space. In optimizing investment structure, further increase the proportion of investment in enterprise operations, gradually build integrated investment and construction, and integrated design, construction, and management urban operators. Accelerate innovation in government investment systems and contracting methods, conduct policy research on promoting engineering general contracting in government investment projects, and accelerate pilot projects in qualified areas, gradually expanding after gaining experience.
  (2) Focus on enhancing technological innovation capabilities in the construction industry. Innovation is the inexhaustible driving force for development. Accelerating the transformation of the construction industry's development mode, promoting transformation and upgrading, and enhancing core competitiveness fundamentally rely on scientific and technological progress and innovation. We must fully leverage the leading role of scientific and technological progress and innovation in transformation and upgrading, make full use of our province's abundant scientific and educational resources, and accelerate the establishment of a market-oriented, industry-university-research integrated construction technology innovation system. Closely monitor new trends and directions in industrial development and technological progress, closely track the forefront of construction technology and key areas, and accelerate the development and application of common, key, and supporting technologies that promote transformation and upgrading through strategic cooperation, school-enterprise cooperation, technology transfer, and equity participation. Compile engineering construction standards and methods, develop patents and proprietary technologies with independent intellectual property rights, and enhance control over the most value-added links in the industrial chain. Persist in focusing on building energy conservation, actively develop low-carbon construction processes, technologies, and materials, vigorously promote green construction, continuously reduce resource and energy consumption of construction products, and promote green development and energy conservation and emission reduction in the construction industry. Firmly establish the concept that talent is the primary resource, cultivate and train leading talents, professional technical talents, and industrial workers in the construction industry, providing strong intellectual support for accelerating transformation and upgrading.
  (3) Focus on strengthening the main role of construction enterprises. Enterprises are the main body of the construction industry's transformation and upgrading. According to the principles of supporting the strong and excellent, supporting specialization and refinement, and improving industrial concentration, encourage leading enterprises to strengthen and expand through cross-regional and cross-industry acquisitions, mergers, and reorganizations, pursue scale and group development, and accelerate the formation of a number of large enterprises and groups with strong core competitiveness; guide small and medium-sized enterprises to specialize, refine, and develop distinctively, accelerate the cultivation of a number of professional backbone enterprises with strong operational characteristics, good market prospects, and obvious technical advantages, and enhance the comprehensive competitiveness of the industry. Guide innovation elements to gather in enterprises, support enterprises to increase R&D investment, build technology innovation and industrialization platforms, and organically combine enterprise technological transformation with mergers and reorganizations, process reengineering, and organizational structure adjustment, fully playing the main role of enterprises in new product development and brand building. Encourage enterprises to actively promote institutional and mechanism innovation, establish modern enterprise systems with property rights reform as the core, accelerate shareholding system reform, and actively explore various income distribution methods involving management, technology, capital, and other factors to fully stimulate enterprise vitality. At the same time, guide and support enterprises to accelerate the pace of construction industrialization, accelerate the formulation of related support policies, especially specific technical and economic policies for promoting construction industrialization, and take the lead in pilot projects in government investment projects such as affordable housing, striving to provide carriers and create conditions for the development and application of construction industrialization technologies and products.
  (4) Focus on improving the overall development level of the construction industry. Accelerating the transformation and upgrading of the construction industry is a common task faced by all regions in the province. The development conditions of the construction industry in Southern Jiangsu, Central Jiangsu, and Northern Jiangsu differ. We must adhere to overall planning, classified guidance, and promote according to local conditions, striving to form a transformation and development pattern with distinctive features, complementary advantages, and mutual promotion. The construction industry in Central Jiangsu ranks among the top in the province, with good basic conditions, strong support, and obvious first-mover advantages. Accelerate the agglomeration development of construction enterprises, especially focusing on improving general contracting capabilities while vigorously developing "high, precise, and specialized" professional enterprises, continuously extending the industrial chain, expanding business scope, and improving service functions; leverage the advantage of many high-level general contracting enterprises, organically combine construction operations with capital operations, carry out foreign engineering general contracting at a high starting point, and accelerate the pace of "going global." Southern Jiangsu's construction industry has distinct professional characteristics and gathers a number of enterprises with certain provincial and even national recognition. Vigorously enhance technological innovation capabilities and scale-intensive levels, accelerate the development of high-tech enterprises, strengthen professional enterprise clusters, promote transformation through innovation, and development through transformation, striving to build a nationally renowned construction industry highland. Northern Jiangsu's construction industry is in an accelerated development stage, facing the dual tasks of expanding total volume and transformation and upgrading. These must be organically combined to truly prioritize quality and achieve both good and fast development, making the acceleration process a process of optimizing industrial structure and achieving transformation and upgrading. At the same time, strengthen counterpart exchanges among Southern, Central, and Northern Jiangsu, establish regional cooperation green channels, organize enterprises to carry out counterpart assistance, and achieve complementary advantages and common development on a higher platform.
4. Fully leverage the leading role of backbone enterprises in transformation and upgrading.
  The enterprises attending today are the backbone and main force of our province's construction industry development. In accelerating the transformation and upgrading of the construction industry, I hope everyone recognizes their mission, dares to take responsibility, and effectively plays a demonstrative, leading, and driving role. First, take the lead in practicing advanced development concepts. Actively learn and draw on advanced concepts, management models, and business methods for transformation and upgrading, be good at broadening development ideas with advanced concepts, view development strategies with a broad vision, guide development practices with scientific methods, and adjust timely according to economic conditions and market environment changes to ensure enterprises always keep pace with development and meet the requirements of the times. Second, take the lead in adjusting and optimizing the business structure. Adhere to the goals of resolving operational risks, expanding market share, and improving economic benefits, closely focus on enhancing professional capabilities and expanding development space around the main business, actively connect with internationally advanced engineering contracting methods, vigorously implement bank-enterprise cooperation, investment and construction integration, strong alliances, and brand strategies, and accelerate the formation of product structures and operating mechanisms that meet development needs. Third, take the lead in promoting scientific and technological progress and innovation. Establish and improve enterprise technology innovation systems, create and absorb patents, construction methods, and technological achievements with independent intellectual property rights, forming unique technological advantages and professional construction advantages. Actively adapt to the low-carbon economic development trend, actively develop and apply energy-saving, land-saving, water-saving, material-saving, intelligent, and green environmental protection technologies. Vigorously implement the "talent strengthening enterprise" strategy and build a talent support system that meets the development needs of the construction industry. Fourth, take the lead in exploring domestic and international construction markets. While consolidating existing markets, strengthen research on domestic regional economic and social development plans, and focus on forward-looking layouts for potential markets. Actively integrate into the export-oriented economic development, increase efforts to develop international markets through shareholding cooperation, bank-enterprise alliances, overseas listings, and other means. Fifth, take the lead in fulfilling corporate social responsibility. Adhere to the principle of "quality first" throughout the entire development process and all fields, strive to create more high-quality projects and works. Further strengthen safety production work, keep the alarm ringing, and ensure that rules, regulations, and management measures are truly implemented. At the same time, earnestly undertake social responsibilities such as protecting the ecological environment, safeguarding employee rights, and supporting public welfare, continuously enhancing the enterprise's market reputation and social satisfaction.
Transformation and upgrading is a complex systematic project that requires a good development environment to provide support and guarantee. Governments at all levels and relevant departments should place greater emphasis on promoting the transformation and upgrading of the construction industry, study and formulate more guiding, targeted, and effective policy measures, further strengthen service functions, expand service capabilities, and improve service efficiency. They should wholeheartedly assist enterprises in coordinating and solving practical problems encountered, creating a strong atmosphere for jointly advancing the transformation and upgrading of the construction industry. We believe that with the joint efforts of everyone and all relevant parties, we will surely be able to successfully change the development mode of the construction industry and push forward the tough battle of transformation and upgrading. The construction of a strong province in construction will definitely take more solid steps.