Measures to kick the cable to improve the quality of stumbling blocks

There are nearly 10,000 wire and cable companies in China, of which 97% are small and medium-sized enterprises. The average utilization rate of equipment is between 30% and 40%, which is far below the level of international equipment utilization above 70%. More than 90% of production capacity is concentrated on In the low-end products, the industry invests an average of less than 1% of its R&D funds in sales; high-end products such as aerospace, nuclear power, electronics, automotive wiring harnesses, and high-voltage cable ultra-clean cable materials rely mainly on imports.

It is not difficult to see that the above data clearly reflects the development status of the wire and cable industry. Although it has been recognized as the second largest industry in China, it has excess capacity, numerous SMEs, extremely low industry concentration, and intense competition in low-end and mid-range products. The lack of investment in R&D in R&D has hindered the healthy development of the industry. Especially the quality factor directly affects the "lifeline" of the company's survival.

In this regard, people in and outside the industry agree that accelerating transformation and upgrading, accelerating mergers and reorganizations, preventing overcapacity, and always adhering to quality first, only in this way can we ensure the healthy and orderly development of the industry and benefit the country and the people.

Transformation and upgrading make quality the leading factor in competition transformation and upgrading, and it is a key measure to enhance quality competitiveness. From the development history of countries all over the world, when economic growth slows down or even declines, the development of various industries will inevitably go through mergers, acquisitions, upgrades, transformations, etc., which will lead to an increase in industry concentration, and China’s cable industry is no exception. . In recent years, experts have also emphasized the transformation and upgrading of the wire and cable industry. The transformation and upgrading they emphasize is the integration and upgrading under the guidance of market demand.

To address this issue, Dai Jingsheng, the deputy deputy director of the National Wire and Cable Quality Supervision and Inspection Center (Jiangsu), stated that China's wire and cable industry must accelerate the transformation and upgrading, thereby enhancing its quality competitiveness and achieving more high-end product manufacturing. In the current and near future, quality improvement, transformation and upgrading will be the main theme of the development of the wire and cable industry, and the only way for cable manufacturers.

How to upgrade and transform, Ding Shanhua, chairman and general manager of Jiangsu Shangshang Cable Group, said: “On the one hand, we should insist on quality improvement. The key to the transformation and upgrading of the wire and cable industry is to improve internal strength. This internal strength is to 'differentiate the product's cost. “Leading efforts”, that is, through the development of high-end materials, the development of high-end products, to seize the commanding heights of cable technology, the formation of 'product differentiation', speed up the elimination of backward equipment upgrades, improve production efficiency, improve product quality, thus forming a 'cost' Leading'.

On the other hand, we should establish a brand and go abroad. Cable manufacturers must not only accelerate the development of alternative imported products, occupy the domestic high-end market, but also accelerate the export of high-end products and win a foothold in the international market. ”

In addition to the transformation and upgrading of enterprises and the improvement of their own product quality and competitiveness, government agencies also have a lot to do. For example, Wuwei County, Anhui Province, which is one of the domestic wire and cable production bases, is the only industrial base with special cables as the leading product in the country. It has always worked hard at the “special” word to constantly expand the special products needed by emerging industries and take product differences. The development of the road, so that the industry structure to do specialize in doing a deeper and higher transformation.

Wuwei County wire and cable enterprises ensure quality and promote the healthy development of the industry. They use actions to fulfill the “four modernization goals” of high-end, standardization, branding, and internationalization of the entire industry.

Mergers and reorganizations All the mergers and reorganizations used for quality improvement are the fundamental ways to integrate quality drivers. China's wire and cable industry has a low degree of concentration. There are only 19 large-scale industry enterprises across the country. And their products accounted for only 11.7% of the country's market share. However, with the current excess capacity in the entire industry, mergers and acquisitions are imperative. This means that: Wire and cable companies urgently need to shift from the low end of the value chain to the middle and high end of the value chain; from the input of resource elements to the drive of innovation; from cost competition to the competition of quality technology brand services; the strategic merger and acquisition of enterprises within the industry complement each other.

So, what are the trends in the development of China's wire and cable industry in the future? Wu Changshun, director of the National Wire and Cable Quality Supervision and Inspection Center, believes that cable manufacturers, which are listed companies and large groups, will merge and integrate relevant wire and cable companies, increase the degree of concentration, and phase out companies that lack funds, lack talent, and lack market.