Just when you thought things couldn’t get worse, news out from China, for the entrepreneurial elevator industry, is dire and getting worse by the second.
After peaking at 600,000 units last year, sales in China may drop to about 500,000 next year amid a surplus of apartments and slowdown of people moving to big cities, Otis Elevator Co. President Philippe Delpech, who heads the world’s largest maker of elevators, said in an interview in Tokyo this month. After that, the market in China, where more than two-thirds of elevators are sold, may stabilize, he said.
When will this market recover, you ponder?
“It could be never,” Delpech said. “We will have to adjust the output of the factories to the market. You will have a consolidation in the market and some small companies will disappear.”
WHAT?! Holy shit.
UTX is the only publicly trades elevator company. Otis cowers in the private markets, secretly getting ravaged from a quickly sinking Chinese’d effect.
If you enjoy the content at iBankCoin, please follow us on Twitter“It’s like when they built New York up over 20 to 30 years. They delivered more elevators than they will ever deliver again,” Delpech said. “It’s kind of that type of construction.”
Ouch.
Knicks and chicks!
No worries. China just needs to go full retard developed world. EBT for half the population with a militarized “police” force to help the “middle class” understand they are poor now. And it is not that bad. lol
China is definitely a bubble, along with western finance. We’re all just waiting to see when these bubbles finally burst. Surely the world will be thrown into a world war to distract the masses from economic woes. Things are already shaping up between US/Turkey/NATO vs. Russia. The deception going on in the geopolitical realm is just amazing.
These winch factories just need to think smaller. The need is still there…..and growing.
http://grandmesamedical.com/wp-content/uploads/2013/11/stair-lift.jpg
If Otis would just make those elevators with metal from China in a Chnese factory, they could have elevators parts self destruct every 3 or 4 years and then replace them for higher and higher sales like an annuity income model.