Wire and cable industry develops rapidly

According to the “12th Five-Year Plan for Development of Wire and Cable Industry” (Draft for Soliciting Opinions), it is believed that during the “Twelfth Five-Year Plan” period, the average annual increase in the sales scale of the wire and cable industry in China will reach 4%-8%. It can be seen that China's wire and cable manufacturers will continue to grow with more rapid growth.

Many people therefore optimistically believe that China's wire and cable manufacturing companies are gradually moving towards a larger wire and cable market through independent innovation, increased technology and management, and are even approaching the cutting-edge industrial sector in Korea with a rapid trend. Of course, almost all wire and cable markets in the world are monopolized by large wire and cable manufacturers such as Italy's Priusman, France's Nexans, South Korea's LS cable, Japan's Sumitomo Electric, and so on, so China's wire and cable manufacturers want to It is not easy to be among the short time.

China's wire and cable manufacturers cannot be among the best in the world. There are many reasons for this, such as low barriers to entry, serious homogeneity, poor competition at low prices, and frequent shoddy phenomenon, despite discussions in the industry are in full swing. We have found that many wire and cable manufacturers are almost evasive about a problem. This is the company's own R&D capability. In fact, this is the most fundamental reason. From the design to construction of the contractor in the field of wire and cable, other subsidiary materials connected to the wire also need to have high technical quality and a reasonable price level, but China’s wire and cable manufacturers currently There is also a gap with market requirements and this level of technology cannot be achieved.

Wire and cable manufacturers want to occupy the market and stabilize the market. They should still insist on speaking with their products. They say that other products are only “condiments” and products are the core competitiveness and are the “main dishes”. The lack of independent research and development capabilities and the inability to independently develop research and development capabilities will inevitably lead to high production costs, and on the contrary low profits. Another important point is that if it is not possible to invest in independent research and development capabilities to improve product quality and create more wire products that meet market demand, then such production companies will inevitably find it difficult to dominate the market and make it difficult to become bigger and stronger and brand names.

Moreover, it cannot be overlooked that despite the rapid development of China's railway and urban rail transit industries, the development of many industries such as communications, shipbuilding, and power grids has brought a vast market to the wire and cable industry, but the pressure on domestic and foreign economic conditions is also objective. Existence, under such conflicts and games, how can we seize the opportunity to strengthen and expand the company first, or need the wire and cable manufacturers to conduct in-depth research, rather than wait and see, waiting for the market to find themselves. In this case, it is tantamount to fantasy.

At present, China's industry is facing four major problems. First, developed countries are returning to high-end manufacturing industries, which has increased the pressure on China's products; Second, neighboring developing countries are competing for low-end manufacturing in China with lower labor costs and production factor costs. Industry; the third is the cost of production factors such as labor costs in China continues to rise, corporate profits have been compressed; fourth is China's core technology controlled by people, lack of scientific and technological innovation capabilities. At the same time, comparing the wire and cable industry, we also find that there are some difficult problems that need to be solved: that is, the market demands for products are constantly increasing, and is gradually shifting from the low end to the high end; the market environment is more complex and meets domestic needs. Change to participate in international competition.

Wire and cable manufacturing enterprises have increased their independent research and development capabilities, through industrial transformation and upgrading, to improve quality as the core link, and extended to the brand, market and technological innovation, becoming the current key to improving industrial competitiveness and realizing the industry from big to strong. Driving force. On the contrary, too much emphasis on the wire and cable industry's predicament and misconceptions will not only help the wire and cable manufacturers, but will also “poise the dirty water” for the industry, making it even more difficult for the market to choose local wire and cable products, which is counterproductive. Therefore, wire and cable manufacturers should upgrade from technological innovation, product innovation, management innovation and other perspectives, put independent research and development on the agenda, have independent intellectual property rights, in order to further enhance the company's core competitiveness. Through technological innovation, product innovation to reduce product production costs, and to grasp and occupy the market with superior performance. Through management innovation, not only from the perspective of cost savings, but also to enhance the production staff of production knowledge, job skills and the most important responsibility, strive for excellence in the workplace, and strictly create quality products.

At present, the technological innovation system of the wire and cable industry has not yet been formed. The capacity for independent design and development is poor, and it basically remains at the low level of surveying and mapping and imitation. The design technology of wire and cable products has not yet been fully grasped, and wire and cable products, materials, processes and equipment have not been formed organically. Combined with the development mechanism, it is difficult to meet the needs of the development of the industry. The reality is that with the continuous development of science and technology and the advancement of industrialization, the demand for wire and cable products is getting higher and higher. This is an indisputable fact.

According to statistical data from related departments, at present, China's wire and cable industry average investment in R&D funds is less than 1% of sales, and domestic cable companies have more than 90% of their production capacity concentrated in low-end products. Under such a background, if wire and cable manufacturers cannot actively produce their own wire and cable products that meet market demands and meet market standards through independent innovation, the result must be eliminated mercilessly by the market. Only through the high attention and implementation of independent innovation by wire and cable manufacturers, can we build domestic brands and even international brands while gaining profits in the occupied market.

From the upgrading and transformation of some forward-looking wire and cable manufacturers in China, perhaps we can get some inspiration. For example, the “cold-resistant cable” popular in the market, especially in the northeastern region, due to the low temperature in the local area, the temperature in the winter is as low as -20 degrees below zero, so it is generally only applicable to products manufactured above zero degrees in the northeast. In particular, it is very difficult to construct the area in the northeastern region, which is in a severe winter. As a result, the "cold-resistant cable" developed by a certain group meets the needs of the market, and thus can display its capabilities. It is reported that the "cold-resistant cable" is suitable for operations at a severe cold region of minus 40 degrees. Due to the high technical content of the "cold-resistant cable", it breaks the original seasonal restrictions and quickly leads the market, with sales in 2012. It has exceeded 40 million yuan, an increase of 10 times. From the practice and success of many wire and cable manufacturing companies, it is not difficult to find that the fundamental discourse power of wire and cable manufacturers to occupy the market lies in the products, and they are producing high-performance products more in line with market demand through independent research and development.

While China's wire and cable manufacturers are facing a huge market lure, they must calm down and complete and realize the development and innovation of the enterprise by strengthening their independent innovation capabilities. Grasps more independent intellectual property rights in key areas and holds a place in the frontiers of science and strategic high-tech fields. Especially in today's increasingly fierce market competition, manufacturers can only continue to open up new areas in order to firmly occupy the market and remain invincible.