Cable industry technology without root causes market development dilemma

From 2012 to the present, the domestic cable industry is facing great obstacles to development, and even can be said to be unable to move. The first is overcapacity, lack of operating costs and other issues caused by the serious development of the industry lag; followed by low profit margins caused by some domestic small and medium enterprises unable to support, have delisting. There are many reasons for the low profit margins of the cable industry, such as the sharp rise in raw material prices, the increasingly fierce market competition, the impact of the seasonal season, but I think this did not touch the nature of low cable margins, the most The essence of the problem lies in the domestic wire and cable industry, the technology does not lead to the current cable industry development dilemma.

In fact, China’s wire and cable industry in terms of technology and international, there is a very large lack. The most prominent problem is that the local wire and cable enterprises in the overall technology research and development has not yet keep up with the pace of today’s world wire and cable research and development, although the local technology has also made some achievements, but in high-end wire and cable research and development is still very weak, It is difficult to compete with the international cable giant.

From the current situation of the wire and cable industry, China’s wire and cable companies clearly do not have the first capacity, not their own R & D system, and the so-called product innovation is based on the product of others low-level imitation, the owner of the technology is not Will own “capital” sold to us, the so-called China’s local wire and cable industry to a certain extent, only the assembly plant and processing plants. From the second point of view, China’s wire and cable companies still do not have to establish their own rapid response to the rapid changes in the organization of new business organizations, loss of huge inventories of the company has proved our lack of operational capacity.

We should keep a clear understanding that the price model of the low-priced production factor we originally relied on is itself wrong because the price advantage of the low-priced production factor is not determined by the price of these elements, but the subsequent technical and management variables Decision, who master the technical and management variables and vice versa who will be able to grasp the advantages of low prices of production factors, so that the real growth of local wire and cable enterprises should be the growth of technology and management, rather than temporary immediate interests.

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