I. Industry Risk Analysis

(1) Policy Risk

The explosion-proof paintbrush industry is currently facing dual pressures from policy implementation and adjustment: In terms of policy implementation, safety production and environmental protection regulations are continuously being tightened, and the implementation of explosion-proof certification standards (such as ATEX and IECEx) is becoming stricter. Additional investment in equipment upgrades and testing fees is required in the production process. Small and medium-sized enterprises may face the risk of suspension of production due to insufficient technology or funds. During the policy adjustment period, higher explosion-proof grades or VOC emission restrictions may be introduced. The transformation cycle of existing production lines is long and the cost is high, and there is a risk that inventory materials will be scrapped due to standard iterations. In the face of fluctuations in international trade policies, the market access barriers in the European and American markets are increasing (such as the update of the REACH regulation), and export enterprises are facing a sharp increase in certification costs and uncertainties in orders. They need to establish a flexible supply chain to cope with sudden policy changes.

(2) Economic Risk

The explosion-proof paintbrush industry is currently facing multiple risks brought about by economic cyclical fluctuations: During the economic downturn, the growth rate of industrial investment slows down, which directly leads to the postponement of equipment maintenance and new construction projects in downstream industries such as petrochemical and energy, and the market demand shows a shrinking trend. The prices of raw materials fluctuate sharply due to the impact of the commodity cycle, and the cost of chemical raw materials such as epoxy resin is difficult to be stably passed on to the end products. In a credit tightening environment, the payment cycle of small and medium-sized customers is extended, and the pressure on enterprises’ accounts receivable intensifies the liquidity risk. Against the background of the accelerated technological upgrading of the industry, traditional products are facing the substitution competition pressure of new corrosion-resistant materials, and there is a contradiction between the demand for technological transformation investment and short-term revenue returns.

(3) Social Risk

Younger consumers pay more attention to environmental protection and technological attributes. Traditional explosion-proof paintbrush products are facing a substitution crisis due to their high-pollution characteristics, while the procurement decision-making layer dominated by the elderly has a low acceptance of intelligent products, resulting in a structural gap in market demand. The career preferences of the new generation of practitioners are shifting towards the digital field, which exacerbates the shortage of technical talents in the industry. At the same time, Generation Z has higher requirements for corporate social responsibility. If a brand fails to convey values such as green production and labor rights protection, it will directly impact market trust and customer retention rates.

(4) Legal Risk

The explosion-proof paintbrush industry faces risks related to safety production regulations. It is necessary to ensure that the explosion-proof performance of products meets standards such as GB/T3836, otherwise, it will face administrative penalties or production bans. The product quality law has strict requirements. Unclear product labels or substandard performance can easily lead to consumer claims and market supervision penalties. The risk of environmental protection laws is prominent. If the VOCs emissions in the production process exceed the standard, it will trigger investigations by environmental protection departments, and there is a risk of suspension of production for rectification. In terms of labor protection regulations, insufficient occupational health protection measures in the production workshop may lead to complaints from workers and result in legal disputes.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurship Opportunities

The current entrepreneurship opportunities in the explosion-proof paintbrush industry focus on the demand for industrial safety upgrades. Entrepreneurs can enter niche scenarios to develop customized products (such as anti-static brushes for petrochemicals and corrosion-resistant brushes for mines), combine with the opportunities of intelligent transformation (integrate sensors to monitor the brush body temperature and working environment in real-time), and simultaneously layout direct sales channels on industrial e-commerce platforms. They should focus on meeting the compliance procurement needs of small and medium-sized hazardous chemical enterprises, establish a quick-response service network to provide regular inspection and emergency replacement services for explosion-proof tools, and jointly develop “tools + training” package services with third-party safety certification agencies. At the same time, they should pay attention to the opportunities for going global brought about by the improvement of industrial safety standards in emerging markets such as Southeast Asia.

(2) Suggestions on Entrepreneurship Resources

Entrepreneurs in the explosion-proof paintbrush industry need to focus on integrating upstream and downstream resources. They should give priority to establishing long-term cooperation with raw material suppliers and contract manufacturers with explosion-proof certification qualifications to ensure product quality compliance. Rely on industry associations to obtain the latest technical standards and policy subsidy information, and connect with industrial product e-commerce platforms (such as the 1688 Industrial Market) to develop B2B customer resources. Bind channels with fire-fighting equipment dealers or engineering service providers to share customer resources. Obtain customers accurately by participating in petrochemical and mining industry exhibitions, and use short video platforms (such as the industrial products section of Douyin) for product scene-based content marketing. In the initial stage, they can rent shared spraying workshops to reduce equipment investment, and cooperate with testing institutions to complete product certification in stages to reduce the initial capital pressure.

(3) Suggestions on Entrepreneurship Teams

Entrepreneurs in the explosion-proof paintbrush industry should give priority to forming a core team with a triple background in explosion-proof technology, chemical materials, and safety certification. They should focus on recruiting technical experts familiar with explosion-proof coating industry standards (such as ISO 80079-34), business talents with sales channels for fire-fighting equipment, and compliance specialists familiar with hazardous chemical production regulations. Team members need to form a closed-loop ability in technology R & D, production management, and market expansion. Adopt the “technical rotation system” to let R & D personnel participate in on-site customer construction regularly to maintain product adaptability. Establish a targeted technical training mechanism with national-level explosion-proof testing institutions (such as the Nanyang Explosion Protection Research Institute), and bind technical consultants with more than ten years of experience in explosion-proof engineering implementation through equity.

(4) Suggestions on Entrepreneurship Risks

Entrepreneurs in the explosion-proof paintbrush industry need to obtain national explosion-proof certification (such as Ex certification) first to ensure product compliance, and cooperate with professional testing institutions for regular quality inspections. Select raw material suppliers with explosion-proof certification qualifications and sign quality liability agreements, and establish a traceable raw material ledger. Accurately target customers in rigid-demand fields such as oil and gas and chemicals and establish customized service capabilities to avoid blindly expanding the inventory of general products. Establish a clear product instruction and safety warning system, and jointly develop special liability insurance for explosion-proof tools with insurance companies to reduce the associated risks of accidents. Closely follow the updates of safety regulations in flammable and explosive places, and reserve 10% of the R & D budget for technological transformation to adapt to new standards.