As China’s property downturn grinds on, foreign suppliers strive to adapt
US lift giant Otis is riding a growing trend for retrofitting older buildings in China, as new construction projects remain thin on the ground
As China’s property downturn drags on, foreign companies in downstream industries are revamping their business models to cope with a decline in new construction projects, but the country’s stable policy environment is helping to ease the transition, according to an executive at a leading US supplier.
Lift giant Otis is looking for new growth momentum in China’s government-led urban renewal drive, which includes a push to install or upgrade lift systems in ageing apartment buildings, said Judy Marks, the company’s CEO and president.
The company built its China business primarily by supplying lifts to new construction projects, as it rode the country’s two-decade-long property boom. Now, it is pivoting towards services, providing modernisation solutions for buildings with ageing or no lifts, she said.
“Out of 11 million elevators in China, about 900,000 are currently ready for refurbishment – and that number is expected to grow by over 10 per cent annually,” Marks said. “We have the solutions, the installers and the service teams ready to meet that demand.”