What is the most popular way to save China's wire

2022-08-02
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How to save China's wire and cable industry under the current economic situation

"After 30 years of rapid development, China has become the world's largest manufacturing market, the largest consumer market and the fastest growing market for the wire and cable industry. However, this is only a microcosm of China's economy. Behind the release of great energy and creativity, the wire and cable industry is under great pressure. Adverse factors such as excess production capacity and disordered market competition are bothering us all the time." Weidong, director of Shanghai Cable Research Institute, summed up the current Chinese wire and cable industry in such a sentence

this is also the consensus of the entire wire and cable industry. In today's increasingly fierce financial crisis, although as a basic product necessary for all fields of national economic construction and people's daily life, the wire and cable industry seems to be unable to survive without the impact of the macroeconomic environment. Whether the wire and cable industry can abandon the "low price competition" strategy pursued for a long time, realize product upgrading and return to rational competition has also become an unavoidable problem for the whole industry

the last straw to crush the camel

according to the statistics conducted by the National Bureau of statistics on 3645 state-owned and above scale wire and cable, optical fiber and optical cable production enterprises in 2007, the total industrial output value (current price) of the whole industry in 2007 was 566.7 billion yuan, an increase of 33% year-on-year, of which the output value of new products was 53billion yuan, an increase of 46.5% year-on-year; The industrial added value was 134.2 billion yuan, an increase of 29.7% year-on-year; The sales output value was 555.7 billion yuan, a year-on-year increase of 32.9%, of which the export delivery value was 54.3 billion yuan, a year-on-year increase of 24%; The total profits and taxes reached 38.69 billion yuan, a year-on-year increase of 36.6%; The industry suffered a loss of 12.7% and a loss of 1.19 billion yuan, a year-on-year increase of 7.6%

it can be seen that while China has become the world's largest cable producer, it is not a powerful country in terms of wires and cables. In the eyes of dingshanhua, chairman of Jiangsu Shangshang cable group, some prominent industry disadvantages and industry characteristics have seriously restricted the healthy development of the cable industry

first, the product quality is worrying. In 2004, according to the results of national wire and cable commodity quality supervision and spot check published by the State Administration for Industry and commerce, 91 batches of products were qualified, with a pass rate of 60.7%. In 2008, the State Administration for Industry and Commerce released the spot check results of the special key rectification work on the quality of wires and cables in 2007, which showed that the product qualification rate has decreased significantly

second, the competitive product structure is low. In general, the plastic can be well modified. The technical quality, production capacity and production concentration of domestic cable manufacturing enterprises are far behind those of foreign advanced enterprises. According to the statistics of relevant departments, thousands of domestic cable enterprises mainly focus on the soft segment cable market composed of low-end aliphatic polyester with less than 20%~30% profit, while most of the profitable 500kV and its ultra-high voltage cable accessories rely on imports

third, low price competition is cruel and disorderly. Winning the bid at the lowest price has become the main theme of most users' bid determination. In order to win the market, cable manufacturers are competing with each other to press down the price in order to win the bid. It is common for them to lose their money, and the price competition tends to be white hot and disordered. Even more, some enterprises ignore quality and safety, lower sales prices with low quality, disrupt the market competition order, and further aggravate the disorderly competition in the industry

"nowadays, the glory of the rapid development of the industry has been difficult to cover up the worry of increasingly low product quality, and the lack of professional dedication and professional ethics of manufacturers will lead to the 'quality gate' becoming the last straw to 'crush the camel' under the increasingly standardized market competition." Wushimin, Deputy Secretary General of the wire and cable branch of China Electrical Appliance Industry Association, spoke out his concerns

active adjustment can win

as a senior person in the industry, wushimin believes that under the current economic situation, entrepreneurs must guide enterprises to conduct rational competition with correct ideas in order to tide over the difficulties. At the same time, we should pay close attention to the trend of macro-economy and investment, timely adjust the business strategy and product development direction of enterprises, and strengthen product research and development in the field of industrial policy support. In addition, we should strengthen market research and the study and judgment of the economic situation, take a more cautious attitude towards the investment in expanding the production scale, and pay attention to the technical transformation and investment in energy conservation and consumption reduction. Only by strengthening internal management, strengthening risk awareness, and enriching the free funds of enterprises, can we ensure the safety of enterprise operation

"From the experience of the optical fiber and cable industry in the past, only when the market environment is becoming tighter can enterprises turn the pressure into a driving force, have a strong enthusiasm to speed up technological upgrading and promote product optimization, and enhance the willingness of industry restructuring and asset restructuring and achieve practical progress. Therefore, in the case of economic growth slowing down, our industry should make rational use of the market forcing mechanism generated in this special period and actively Promote the process of industrial upgrading; Adjust and improve the product structure, and actively develop wire and cable products in line with the development direction of industrial policies; Further strengthen the internal management of the enterprise and improve the efficiency of enterprise operation; We will encourage advantageous enterprises to carry out mergers and acquisitions to enhance their competitiveness. " Wushimin said

however, according to the research data of the UK Commodity Research Institute (CRU), Chinese wire and cable enterprises should also see the call of opportunity in the face of the above challenges

CRU estimates that with the continuous growth of the global population, power consumption will double in the next 30 years. The increase of distributed new energy power plants, the high demand for underground cables, the demand for power in developing countries, and the replacement of old power facilities in developed countries will lead to the increasing demand for wires and cables in the world

however, the development of the wire and cable industry must also adapt to the development needs of the new situation. The market development prospects of wind power cables, submarine cables, bendable lossless optical fibers, high-voltage DC cables and other products are quite optimistic. However, this requires enterprises to improve the performance of their products through innovation in order to adapt to more stringent service conditions

"for wire and cable enterprises, in the process of product innovation, we need to grasp the following key points: first, in response to the government's requirements for energy conservation and emission reduction, it is also very important to pay attention to the selection of experimental machine accessories, and the upgrading of equipment, so as to meet the environmental emission standards, reduce energy consumption and improve (2) Product quality and production efficiency if the machine is not used for a long time after the experiment. Second, in terms of infrastructure construction, we should adopt a prudent attitude towards the continuous expansion of production scale and strengthen the management of production and operation to further reduce manufacturing and operating costs; Third, in the process of production and use, eliminate toxic fumes; Fourth, we should adopt more venture capital models to reduce the cycle of scientific and technological development; Fifth, make collective investment in new technologies to create huge value for end users. " Wushimin said

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