What are the unfavorable factors affecting the automatic fire extinguishing industry

1. The quality of fire-fighting equipment is heavy and it is not convenient for long-distance transportation

In the automatic gas fire extinguishing system, the number of steel cylinders used in the cabinet-type heptafluoropropane system and the IG541 fire extinguishing system is large. In addition, pipelines made of iron, copper, aluminum and other raw materials and other fire-fighting equipment are of heavy weight and are not convenient for long-distance transportation. Due to limited transportation conditions, many small and medium-sized enterprises can only sell products in the area where the company is located, and cannot develop their business to other parts of the country. Naturally, a small and scattered market across the country has been formed.

　　2. The number of pharmaceutical manufacturers is limited, so a lot of money is needed to purchase raw materials

　　 At present, there are only four pharmaceutical manufacturers in the country. An oligopolistic market has formed in the field of pharmaceutical production. The pharmaceutical manufacturers determine the price and payment method of the pharmaceuticals, so that the fire extinguishing system companies that purchase the pharmaceuticals are in a passive position. At this stage, the form of pharmacy procurement is cash in stock, which requires a large amount of capital reserves. At the same time, steel cylinders also require a large amount of financial support. Without a large amount of capital as a backing, it is difficult for companies to develop and grow. A large amount of capital reserves has become one of the important factors restricting the development of the automatic fire extinguishing industry.

　　3. Longer payment cycle results in slower capital turnover

　　Project payment methods are generally instalments, divided into three installments: prepayment, mid-term and final payment. When doing larger projects, funds are very important. In addition to the large amount of funds required for the purchase of pharmaceuticals and steel cylinders, the project advancement also requires a large capital reserve. General projects require a capital reserve of 20% of the contract value. For example, for a project with a contract value of 3 million, there is only a 10% advance payment or no advance payment, which requires the fire extinguishing company to advance the funds. The payment cycle is generally relatively long, and according to the acceptance situation, the payment at the end of the year is relatively large.