Reading guide
After the first round of rapid development of the sanitation market, the demand for sanitation services in different regions began to differentiate. How to adjust measures to local conditions and accurately implement policies according to regional characteristics and needs is becoming one of the keys for sanitation enterprises to win the future and realize sustainable and steady development.
The purpose of this report is to establish an evaluation system for the market demand of environmental sanitation in different regions by taking the level of province / municipality / autonomous region as an example. Based on the analysis of market space and government credit, this paper establishes an evaluation model with seven indicators including road cleaning and cleaning scale, public toilet operation market scale, domestic waste cleaning and transportation scale, marketization rate, government economic strength, debt burden and financial strength to objectively verify the overall demand level of environmental sanitation market in each province by means of data analysis, To provide guidance for enterprises to implement targeted development strategies in regional expansion.
present situation
Since 2015, the large-scale marketization of environmental sanitation has expanded and changed in service content and service mode. At the same time, due to the different degree of marketization development in different regions, the government's demand for environmental sanitation services has also begun to differentiate. In summary, the demand for environmental sanitation services in different regions can be divided into marketization, standardization, standardization and marketization There are three levels of integration (see Figure 1).
In the stage of market-oriented demand, the region is characterized by low degree of marketization and low level of environmental sanitation management. The main problems are from self built and self managed environmental sanitation projects, and the demand level is low. It is difficult to mobilize the enthusiasm of the staff due to the vacancy of effective supervision mechanism caused by the construction and management, monopoly operation and lack of competition. At the same time, too large management organization also leads to high management cost, low efficiency and poor service quality. In the end, the management department is entangled with daily affairs and tired of dealing with them, and will not have time to take into account the long-term and deep-seated problems of sanitation management. The primary demand of governments in these regions for external sanitation services is to carry out market-oriented reform of sanitation and improve the level of sanitation management.
The region in the stage of standardized demand is characterized by certain market experience, but it still faces the problems of nonstandard and imperfect market management, and the demand level is medium. To sum up, there are four major problems: first, the city cleaning service content is not complete, and the operation is fragmented; Second, the division of environmental health responsibility area is not clear, and there is a dead corner of management responsibility; Third, the management of garbage disposal is not standardized, and there is a gap between the main road and the secondary road; Fourth, the construction and management of sanitation facilities is not complete, and the types of vehicles and equipment are limited and the quantity is insufficient. The goal of the governments in these regions is to deepen the standard operation and form a long-term mechanism of environmental sanitation marketization; After gradually accumulating experience, the whole regional sanitation operation will be put into the market.
The region in the stage of comprehensive demand is characterized by high marketization, which is in the forefront of the reform of environmental sanitation marketization. The problems it faces are more comprehensive and the demand level is higher. For example, part of the regional sanitation has realized the integration in the horizontal direction, but there is no connection in the vertical direction; In the process of urban construction in some areas, no suitable waste free city model has been found, and fine urban management has not been well realized; The imbalance of urban and rural public services exists in some regions, which also leads to the higher-level needs of the government, such as creating a unique urban management mode, emphasizing fine and intelligent supervision, and striving for the equalization of urban and rural public services.
The question is: how should sanitation enterprises conduct forward-looking and rational division for different regions, so as to adjust measures to local conditions and implement policies accurately?
Research scope
For the sake of simplicity, this report selects 31 provinces, autonomous regions and municipalities as the research objects. It should be emphasized that the division of provinces, autonomous regions and municipalities directly under the central government only represents the overall development level of their sanitation market. In fact, the imbalance of development among the counties and cities under their jurisdiction is also prominent.
Index selection
We build a demand assessment model for environmental sanitation services from two dimensions of market space and government credit. Market space is mainly measured by the scale of road cleaning, public toilet operation, domestic waste cleaning and transportation and market-oriented rate, while government credit is mainly measured by the government's economic strength, debt burden and financial strength, According to the judgment of the importance of each index, the corresponding weight is given (see Figure 2).
As for the selection of specific indicators, we measure the market scale of road cleaning and cleaning from the aspects of urban actual road area, domestic waste cleaning and transportation volume, public toilet operation and maintenance market scale from the aspects of the number of public toilets, regional economic strength from the aspects of total GDP and per capita GDP, and local government debt scale and the number of public toilets The debt ratio measures the regional debt burden, and the government revenue scale, revenue quality, transfer payment measures the regional financial strength [1].
research method
We obtained the government credit index evaluation of 31 provinces, autonomous regions and municipalities directly under the central government, and obtained the data of domestic waste removal and transportation volume, urban actual road area, number of public toilets, etc. through the National Bureau of statistics, Huibo economic database EDB, Ministry of ecological environment, relevant associations and Chen Shu. Data collection is up to June 2020.
For the market space index, we sum up the scale of road cleaning and cleaning, the scale of public toilet operation market and the scale of domestic waste cleaning and transportation, and then multiply by the marketization rate to get the environmental sanitation market space of each region. For the government credit indicators, we give the government economic strength, financial strength and debt burden 30%, 30% and 40% weight respectively to get the comprehensive score of each region.
Findings of environmental sanitation service demand assessment
General situation
According to the two-dimensional scores of market space and government credit of 31 provinces, autonomous regions and municipalities directly under the central government, we divide these regions into three categories: market-oriented demand, standardized demand and comprehensive demand. Among them, the areas in the stage of comprehensive demand deserve the attention of enterprises, with large market space, relatively good government credit, strong financial payment ability and low debt risk. Under the comprehensive and forward-looking demand, it is very likely to breed large amount and long-term environmental health projects; In the stage of standardized demand, the market-oriented space of the region is medium, while the government credit is medium, and there is a certain debt risk. Due to the market-oriented pilot and the trend of gradually forming integrated management in such regions, it is more likely to produce long-term environmental sanitation projects, and there are also high-quality projects worthy of attention of environmental sanitation enterprises; In the stage of market-oriented demand, the space of regional marketization is relatively small, the government credit is relatively low, the debt risk is high, and the probability rate will produce fragmented simple projects. Enterprises should explore innovative operation mode to assist the government to accelerate the construction of environmental sanitation marketization.
High level strategy of regional expansion based on comprehensive demand
Taking Guangdong as an example, in the stage of comprehensive demand, enterprises should take more projects, keep close communication and contact with the government, and work together to produce comprehensive large projects. In terms of market space, the market space of environmental sanitation in Guangdong Province is about 17.74 billion, ranking the first in the sample; In terms of government credit, due to its strong economic strength and financial capacity, the GDP will reach 10.77 trillion yuan in 2020, an increase of 6.2% over the previous year, and the general public budget revenue will reach 1265.1 billion yuan. Although the debt scale is more than one trillion yuan, the comprehensive score will still reach 89.6 points. In terms of competition pattern, the competition in the environmental sanitation market of Guangdong Province is fierce and the head effect is obvious. There are more than 600 participants in the environmental sanitation market, with CR10 close to 30%. There is no obvious dominant situation of enterprises in Guangdong Province, and the market share of local enterprises is only 30%. At present, the environmental sanitation market in Guangdong Province has large orders. Take Zhuhai City as an example, its "Jinwan District, Doumen District, Hengqin New District (integrated area and island area), high tech Zone, Fushan Industrial Park, bonded zone and cross-border industrial zone" all implement the large municipal management and maintenance mode, and the annual cost for municipal comprehensive management and maintenance is close to 1 billion yuan. In addition, Shenzhen, Foshan and other cities will also launch a number of environmental sanitation orders in 2020.
For such areas, enterprises should focus on creating mechanization, integration, intelligence and other cutting-edge product highlights, and take environmental sanitation large single as the regional development goal. At the same time, small projects in different areas of the same city can be obtained purposefully to establish a strong cooperative relationship with the local government and establish a cluster effect; Or in a city to create a benchmark project, establish a good government relationship, take the city as the center, radiate to the surrounding cities, and further establish a project cluster. Finally, according to the operation experience of existing small projects, the paper proposes a large-scale and integrated urban comprehensive service scheme, and works with the local government to produce large projects.
High level strategy of regional development based on standardized demand
Taking Henan Province as an example, enterprises should focus on long-term high-quality projects such as PPP projects. In terms of market space, the marketization space of environmental sanitation in Henan Province is about 8.22 billion, ranking fifth in the sample; In terms of government credit, its economic strength and government financial capacity are above average. In 2019, it will achieve a GDP of 5.4 trillion, an increase of 7.0% over the previous year. The general public budget revenue is 401.79 billion yuan, and the total debt scale is about 800 billion yuan, with a comprehensive score of 85.0 points. In the competition pattern, local enterprises are dominant in Zhengzhou, the capital of the province, while the competition pattern of county level sanitation projects is more dispersed, and there is no obvious dominant situation of enterprises in the province. The overall marketization degree of Henan Province is relatively sufficient. Due to the rapid development of marketization in recent years, some areas with slow development have produced long and large quality projects. Taking Zhengzhou, the provincial capital, as an example, the environmental sanitation market in the old urban area presents the characteristics of fragmentation. In the past three years, the market-oriented bidding in non old urban areas such as Gongyi City, Hangkong district and Xinzheng City are mostly "global cleaning" projects, which makes the single contract amount larger. In 2017, Xinzheng City also launched the PPP project of urban and rural environmental sanitation integration with a service period of up to 16 years.
For such areas, enterprises should pay attention to the standardization and integrity of sanitation services, and take maintaining market share as the regional expansion goal. Due to the medium market space in the region, it is impossible to generate many large amount projects. Therefore, when expanding, we can reduce the amount requirements for a single project. At the same time, we can focus on the PPP and other long-term project mode, avoid a large number of projects repeatedly due, and maintain the local market share with high efficiency.
High level strategy of regional development based on market demand
Taking Shanxi Province as an example, in the market demand stage, the market space is small and the government credit is relatively low. Therefore, enterprises need to take Expansion Strategies for fragmented projects. In terms of market space, the market space of sanitation in Shanxi Province is about 2.53 billion, ranking 23rd in the sample; In terms of government credit, its economic strength and financial capacity are weak. In 2019, it will achieve GDP of 1.7 trillion yuan, general public budget revenue of 704.8 billion yuan, and total debt scale of more than one trillion yuan, with a comprehensive score of 78.7 points. The market competition pattern of environmental sanitation service in Shanxi Province is extremely scattered, and the market share of local enterprises is not high. Among the 11 enterprises with the total annual contract value of more than 30 million yuan, only Lantai Group Co., Ltd. is a local enterprise in Shanxi Province. Shanxi's sanitation market as a whole presents a small and scattered situation. In the projects from 2017 to 2020, the number of sanitation orders with annual contract value less than 5 million yuan accounts for nearly 60%, and the number of projects with project life less than one year accounts for nearly half.
For such areas, due to small and scattered projects, fragmented operations are easy to cause losses. Enterprises should explore low-cost operation mode to improve the efficiency of resource allocation. Qualified enterprises can carry out large-scale and systematic environmental sanitation scheme design in combination with local conditions, so as to improve the regional environment in two steps at the same time, and assist the local government to accelerate the marketization process.
[1] Debt ratio (government debt / available financial resources), revenue scale (final accounts of general public budget revenue), revenue quality (proportion of local tax revenue in general public budget revenue), transfer payment (mainly return income and general transfer payment)
On "demand differentiation: how should sanitation enterprises adjust measures to local conditions and implement policies accurately?"
This report is based on desk research and data analysis of 31 provinces, autonomous regions and municipalities in China.
The data collected in the report is as of June 2020.
Data sources of the report include National Bureau of statistics, websites of Provincial People's governments, reports on budget implementation in 2019 and budget in 2020 of provincial governments, EDB, Dongfang Jincheng and other databases, public information, news, etc.
The report evaluates the market demand level of environmental sanitation in 31 provinces, autonomous regions and municipalities from the two dimensions of market space and government credit, ranks and classifies the evaluation results, and provides market entry suggestions for environmental investors.
Original title: demand differentiation: how should sanitation enterprises adjust measures to local conditions and implement policies accurately?
Article link: environmental protection online https://www.hbzhan.com/news/detail/140509.html
