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Johnson Controls takes charge of China's intelligent buildings

with the rapid development of China's new urbanization, the overall energy consumption of the construction industry will continue to rise. Various solutions to make buildings green have spawned a huge market. In fact, the global building energy efficiency market has reached hundreds of billions of dollars

many practical problems have not prevented the acceleration of China's energy-saving industry

4175 enterprises, 435000 employees, with an annual output value of 165.3 billion yuan, an increase of 32.24% year-on-year. The market value expectation of trillions is attracting more and more enterprises to join the ranks of competitors. Among them, building energy conservation is being regarded by some analysts as the most potential gold chasing place in the field of environmental protection and energy conservation

relevant data show that the construction industry accounts for 30% of the total energy consumption of the society, plus the consumption of building materials production process, accounting for even nearly half of the total energy consumption of the society; In addition, greenhouse gas emissions from the construction and use of buildings account for 48% of global emissions

according to insiders, with the rapid development of China's new urbanization, the overall energy consumption of the construction industry will continue to rise. Various solutions to make buildings green have spawned a huge market. In fact, the global building energy efficiency market has reached hundreds of billions of dollars

however, the current building energy efficiency market is mixed, and the qualifications of new enterprises are mixed; Some old problems remain unsolved, and new problems are emerging. The industrial situation should still be consistent with the old saying: the future is infinitely bright, and the road is still tortuous

in the face of changes in the industrial ecology, Johnson Controls, which has been deeply involved in the Chinese market for many years, also felt a lot of pressure. We need to integrate more successful experiences and global resources into the local market. Chen Runsheng, vice president of Johnson Controls' building facility efficiency business in Greater China, told Yingcai that this largest integrated product, system and service provider in the global building environment market still needs to strengthen its core competitiveness in order to maintain its leading edge in the Chinese market

obviously, the leader is not so easy to be. Nuggets China intelligent building engineering

in 2005, Johnson Controls acquired York International with us $3.2 billion. That same year, Chen Runsheng assumed the position of top leader of Johnson Controls' building facility efficiency business in China (the company does not have a regional president), and began to lead the team to explore China's energy efficiency [China plastic news] market

at that time, Johnson Controls had won 1million customers in the global market; Nearly 90% of the world's tallest buildings, including the Empire State Building, and some landmark buildings and places have adopted Johnson Controls' energy efficiency solutions

however, there are many differences between China's energy efficiency market, which is still in a chaotic period, and mature markets such as Europe and the United States, which also tested early gold miners. Early entrants, including Johnson Controls, have to face the fact that it is difficult to implement policies, developers have no motivation, there are few financing channels, and public awareness is seriously insufficient

high cost is the main limiting factor of building energy conservation. Houyuxuan, a researcher in the environmental protection industry of CIC consultant, told talents that for those private enterprises that operate independently and are responsible for their own profits and losses, the intelligent transformation needs to bear the corresponding risks, and many enterprises do not know what benefits can be brought by the energy-saving transformation

therefore, after entering the Chinese market, some multinational companies found that the fully mature project experience and business model in the international market could not be connected and implemented in China

in China's energy efficiency market, there are mainly three types of Companies: capital support, technology support and equipment support. Most of the players pouring into this market are small and medium-sized enterprises focusing on a certain segment of the industry, doing single link transformation and single equipment update. In addition, some buildings claim to carry out energy-saving transformation, which only improves local or single systems, and rarely systematically and comprehensively manages all the energy in the building

based on the observation of the competitors in the Chinese market and the full study of their own advantages and capabilities, Johnson Controls began to launch one-stop building solutions in the market, just like seeing a doctor for patients. What we do is a comprehensive solution from consultation, physical examination, diagnosis to the whole process of treatment. Chen Runsheng told "talents", Johnson Controls has thus become the enterprise that has received the most intelligent building projects in China

however, with the policy support of the Chinese government for the energy conservation and environmental protection industry and the rapid growth of domestic enterprises, the competition in the field of energy conservation has become increasingly fierce. It is still more difficult for multinational energy efficiency service providers to apply a load 10mm from the tail of the hammer handle to gain market advantage

from the perspective of business model, Johnson Controls will also face more competitors: some large enterprises have also begun to move closer to the role of integrated solution providers, and it is becoming more difficult for multinational energy efficiency service providers to gain advantages in some regional and segmented markets. Johnson Controls needs to seize the first mover advantage in future market expansion and constantly evolve its own solutions. And gain more customers' trust in all kinds of trivial long-term services

the business model is difficult to control

China has always been an important part of Johnson Controls' global market layout. With the promotion of new urbanization, the weight of the Chinese market is still increasing

officials from the Ministry of housing and urban rural development predict that China's investment in energy-saving construction projects will be at least 1.5 trillion yuan by 2020. Relevant research reports also show that, based on China's existing construction stock, even if only half of them can carry out energy-saving transformation, all enterprises in this industrial chain have an average performance improvement of at least 4%

the vision is beautiful, but the reality is still a little skinny. As long as the long-term problems affecting industrial development such as the difficulty of policy implementation and the lack of motivation of developers cannot be effectively solved, all kinds of dazzling calculations are only an ideal cycle written on paper

in terms of the current market stage, whether the policy level support and relevant rules can be implemented is still the key factor for the rapid opening of market space. Hou Yuxuan believes that when the government, financial institutions, developers, energy efficiency service providers, and even end consumers truly form a joint force, the building energy efficiency market is entering a mature stage of development

at present, the lack of financial innovation and support is a major weakness in the development of the building energy efficiency market. Banks often fail to make accurate judgments about the quality of projects and the energy-saving benefits of projects. The biggest worry is that the loans cannot be recovered. Jiang Yi, an academician of the Chinese Academy of engineering, told Yingcai that on the one hand, financing institutions need to provide more business varieties such as purchase contracts and mortgages for energy-saving benefits to provide financing services for contract energy management projects; On the other hand, banks also need to encourage the creativity of relevant business departments

at the beginning of 2011, Johnson Controls began to cooperate with Asian Development Bank and Pudong Development Bank to provide multi project financing plan for energy efficiency. The credit risk of this project is shared by ADB and financial institutions. Shanghai Pudong Development Bank (600000, Guba) is responsible for measuring and judging the performance parameters of concrete according to the national standard gb/t50081 (2) 002 "standard for experimental methods of mechanical properties of ordinary concrete", and issuing loans to building owners who need energy-saving transformation. Johnson Controls is responsible for finding and implementing construction projects with energy-saving potential, and providing audit and energy efficiency solutions

Chen Runsheng told "talents" that such a functional torque tester of the torque tester of Jinan new era assaying Instrument Co., Ltd., as a precision instrument method, has solved the long-standing capital problem, and the enterprise has reduced the risk when accepting energy-saving transformation services

in addition to solving the financing problems, the replicable building reconstruction model applied to the Empire State Building solves the problems including the use of new technologies to calculate and prove savings, the signing of performance contracts and project returns

however, Jiang Yi believes that this business model of contracted energy management is not easy to control in China. Some owners' dishonesty and failure to operate in accordance with the contract are very likely to conflict with energy management enterprises. After similar disputes, the state has not formulated corresponding legal provisions. Therefore, the risks faced by energy efficiency service companies in implementing contracted energy management projects have not been substantially improved

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