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What China cable industry transformation and upgrading?

Information Source:Henan Huadong Cable Co., Ltd Release date:2014-04-28

In 2012 and 2013, affected by the economic growth, GDP growth slowed, infrastructure investment, reduce the environmental problems of macro Chinese, wire and cable industry was once depressed, a serious shortage of capacity utilization. In addition, the industry of repeated construction is serious, resulting in excess capacity problems, plus all the low-end market competition, continuously backlog of profit rate, leading to Chinese wire and cable manufacturers almost unprofitable. Coupled with the economic situation is not good, resulting in difficulties in financing and payment mechanisms; cable industry is not reasonable, cycle is very long, difficult return to problems caused by the tight funding chain......

Because of the difficulties facing the domestic wire and cable industry, both in government or industry, large and small meetings, we can often see some relevant functional departments of the leadership, industry experts, entrepreneurs in the shout "transformation and upgrading". As the wire and cable industry transformation and upgrading is the last straw, but can really understand the transformation and upgrading, transformation and upgrading the core caught and find effective measures, the transformation and upgrading of manufacturing enterprises less and less.

In other words, the present Chinese wire and cable production enterprises, are actively seeking transformation and upgrading of the road, but the cable production enterprises more is still confined to shout slogans, or simply by management to want to achieve "transformation and upgrading", the industry's most common form is to "broaden sources of income and reduce expenditure", "quality and efficiency", but broaden sources of income and reduce expenditure and finally often cause synergistic upgrading employee salary withheld, welfare and cancel, and not from the core to solve the management problems of production enterprises.

Since there are some enterprises only know should be "upgrading", but do not know how to "upgrade", then we should seriously analyze, wire and cable industry Chinese should how to upgrade, and how to find the reference, how to succeed? Therefore, we must re and correctly understand the concept of transformation and upgrading.

What is the industrial transformation and upgrading means? It requires industry to high value-added upgrade from low added value, from high energy consumption and high pollution to low energy consumption and low pollution upgrade, from extensive to intensive upgrade. In the implementation process, should will "upgrade" into "transformation" and "upgrade". "Transformation" is the core of the transformation of the economic growth of the "type", namely the high input, high consumption, high pollution, low output, low quality, low benefit to low input, low consumption, low pollution, high yield, high quality, high efficiency, the extensive type to intensive. "Upgrade" is the core of the requirements of cable products processing and reprocessing degree gradually deepening, technology intensive, constantly improve production efficiency. Only a correct understanding of the connotation of transformation and upgrading of industrial structure, to avoid the deviation in practice.

Industrial transformation and upgrading is the key technical progress, based on the introduction of advanced technology on the digestion and absorption, and study, improvement and innovation, establish the technical system of their own. In addition, the upgrade must rely on government administrative regulations of the guidance, policy support and capital transformation of industry, the industrial upgrading and staff training, and employment combined.

China wire and cable industry to upgrade the success, lies in three aspects: the government's guidance and support; enterprises according to plan their own actual situation; and find worthy of reference, learning enterprise. The first two factors, due to objective reasons, the author is difficult to effectively answer through the analysis, but in the reference and learning, I think we have a lot of examples. For example, wire and cable industry in the developed countries also have experienced the transformation, Europe, Japan, South Korea, American world famous wire and cable enterprises have experienced a transformation of enterprises.

The French Alcatel as global cable industry leader, to provide a full range of cable products, the market localization strategy transition position in China implementation; American general cable is a special cable, the world's biggest producer of the product positioning, market leading in the industry in its own have the core competitiveness of the nuclear power, ship domain; South Korea LS cable, enterprise Transitional Positioning in EHV cable, optical cable, connector leading global supplier; Japan Sumitomo electrician started to copper, enterprise transformation and integration of the whole industrial chain, through the wire and cable manufacturing, make the business enterprise and the copper wire and cable business, cross fusion technology.

In learning from the foreign advanced experience, some wire and cable manufacturing enterprises to seek the cooperation with foreign enterprises in the form of transformation and upgrading, to carry on their own business. For example, some wire cable production enterprises to increase investment in scientific research and development efforts, and increased the international brand business cooperation, to develop new products continuously improve product added value, many enterprises to independent research and development of semi-automatic or fully automatic production line to realize large-scale production, reduce dependence on human resources, ease in recent years due to rising labor costs and bring cost pressure, improve production efficiency, go on the transformation and upgrading of the road. While some enterprises are actively respond to the government's new energy development, increase investment in research and development costs, efforts to develop new products with the market demand, to take the road of development of product differentiation. Thus, China's nuclear power, wind power, solar photovoltaic cable cable cable, special cable has been rapid development.

The cable production transformation and upgrading of enterprises, the vast majority of enterprises are the improvement and upgrade products, promote the upgrading of enterprises. But in addition, wire and cable industry China should also starting from the transformation of business strategy of multiple perspectives, seeking more upgrade path. Such as learning or so, the market re positioning, such as the main development Africa market. In fact, in recent years, more and more demand for network Africa. The authoritative institutions predict, to 2019 on the Internet Africa international export bandwidth demand will grow by 51% a year. Last June, American President Obama said, the next 5 years, will mobilize American government $7000000000 and $9000000000 of private enterprises, to make the Sahara doubled power access to South Africa rate.

Four emerging countries including Kenya, at the end of a long political turmoil, the economy began to recover, large-scale power infrastructure has launched. Along with the horse and submarine cable Africa national broadband engineering project during laying, cable demand will also make a spurt of progress.

In summary, Chinese wire and cable industry has reached a crucial moment of transformation and upgrading, but there are still some enterprises do not know what is the transformation and upgrading, also do not know how to upgrade. For this, the author thinks that the enterprises should combine their own actual situation to upgrade, which is by changing the mode of operation, or improved products, or to seek cooperation with foreign enterprises.

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