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How Solar Thermal Utilization Companies Have Successfully Slimmed down and Achieved an "A4 Waist"
How Solar Thermal Utilization Companies Have Successfully Slimmed down and Achieved an "A4 Waist"
May 19, 2026
How Solar Thermal Utilization Companies Can Successfully Slim Down and Achieve an "A4 Waist"
On the other hand, many companies in the solar thermal utilization industry have become bloated due to blindly expanding production or overly long product lines, making it difficult to operate, and some have even gone bankrupt.
Industry insiders believe that for small and medium-sized enterprises, especially manufacturing companies, expanding their scale inevitably leads to a corresponding increase in operating costs. If increased investment is coupled with a shrinking market, it will bring significant risks. Therefore, against the backdrop of overcapacity, product homogenization, and escalating price wars in the industry, SMEs need forward-thinking and strategic planning to ensure success and avoid blind expansion. Secondly, they must cultivate niche markets and refine their products. When problems arise, they must promptly "streamline."
As the saying goes, "a small boat is easier to turn around." In the current solar thermal utilization industry, consolidation, reshuffling, and cross-industry expansion are ongoing, with advantageous resources increasingly concentrated in industry leaders, leading to a "the bigger, the stronger" situation. Diversification is like addition, beneficial for reducing risk; while focus is like subtraction, valuable for meticulous cultivation. For SMEs lacking scale, technology, or capital advantages, meticulous cultivation is the only way to transform a "red ocean" into a "deep ocean."
Therefore, SMEs must first avoid the trap of "being big and comprehensive," avoiding the biased approach of blindly pursuing large-scale, all-encompassing development, and instead focus their efforts on supporting products with outstanding advantages and key functions. By firmly grasping this advantageous and distinctive product, one can master the core competitive advantage of the entire industry chain. For other related products in the industry chain, external advantageous resources can be integrated through cooperation, turning potential rivals into strong partnerships, ultimately achieving a win-win situation for the industry.
Secondly, accurately identify one's own positioning and focus on a niche market. Enterprises need to understand what they can and cannot do, giving themselves a clear positioning, abandoning unrealistic ambitions, developing rationally, concentrating limited resources and energy to firmly defend a specific niche market, and striving to become the industry leader in that field.
Furthermore, for some already established enterprises, in the current unfavorable economic situation, cutting unprofitable businesses and "subtracting" to reduce pressure and burdens and seek survival is also a wise approach.
Clearly, there are many ways to "slim down," but they all revolve around "refinement" and "specialization." 2016 was the opening year of the 13th Five-Year Plan and a crucial year for supply-side reform. During the recently concluded National People's Congress and the Chinese People's Political Consultative Conference (NPC and CPPCC), the issues of "reducing overcapacity, destocking, deleveraging, and adjusting the economic structure" were once again brought to the forefront by delegates and members. Small and medium-sized enterprises in the solar thermal utilization sector should fully consider their own strengths and weaknesses, return to a pragmatic approach, and avoid bringing catastrophic consequences to their enterprises by unilaterally pursuing large-scale and comprehensive development. In addition, they should also transform and upgrade, and eliminate outdated production capacity.
