Core Viewpoint - The concept of "human efficiency ratio" is becoming increasingly important for home furnishing and building materials companies as they navigate a challenging market characterized by rising bankruptcy rates and declining consumer demand [1][2][8]. Industry Challenges - The home furnishing industry is facing a significant downturn, with nearly 90 companies related to "decoration" going bankrupt in the first half of the year, a 70% increase compared to the same period last year [2]. - Notable companies like Fubon Furniture and Haotian Decoration have recently declared bankruptcy due to inability to repay debts, highlighting the severe financial pressures in the industry [2][5]. Human Efficiency Ratio - The "human efficiency ratio" (人效比) is defined as the ratio of total output (or revenue) to the average number of employees, serving as a key indicator of operational efficiency [8][14]. - In 2024, the average revenue per employee in the home furnishing sector was 997,200 yuan, with an average profit per employee of 22,800 yuan, both showing a decline from 2023 [8][14]. Performance by Sector - The kitchen appliance sector demonstrated the highest human efficiency ratio, with an average profit per employee of 105,500 yuan, while custom furniture and ceramic sanitary ware sectors reported negative profits, indicating a need for operational improvements [9][11]. Strategies for Improvement - Companies are encouraged to enhance their human efficiency ratios through digital transformation, employee empowerment, and streamlined organizational structures [14]. - Digitalization and automation can significantly improve operational and production efficiency, while targeted training can enhance employee skills and productivity [14]. Conclusion - In an uncertain market environment, companies that focus on self-reform and improving operational efficiency through higher human efficiency ratios are better positioned to withstand market fluctuations [15].