Environmental protection cable has become a trend

Environmental protection cable has become a trend “In the current slowdown in cable industry, it is particularly important to handle the game between long-term value and short-term benefits.” Wu Shimin, deputy secretary-general of the Electrical and Electronics Industry Association of China Electric Appliance Industry Association, said recently that the game of short-term benefits and long-term value makes it possible to manage People suffer, but if you do not deal with this relationship, fast decisions will also have a slow effect. Conversely, slow decisions also produce a quick result.

As the basic supporter of major industries, national defense construction, and major construction projects, wire and cable have been hailed as the “blood” and “nerve” of the national economy. Its important position is self-evident and has become second only to electrical and electronic appliances. The second largest automobile manufacturing industry.

Multiple pressure-induced growth rate slows down

In 2011, the wire and cable industry achieved a steady growth. The scale of output value has reached a new level of 1 trillion yuan. There are more than 7000 wire and cable manufacturing companies and employs 809,000 people, ranking the first in the world.

Although the first eight months of this year continued to maintain growth, the increase has clearly declined.

According to statistics, in the first eight months of this year, compared with the same period of last year, the industrial output value reached less than 800 billion yuan, the overall growth rate decreased by 20.9%, the export delivery value increased by 12.7%, the main business income decreased by 22.9%, and the profit growth also declined. 12.7%, employees fell 10.5% year-on-year. Due to the impact of the decline in copper prices this year, the wire and cable factory prices fell by 1.8% in the first eight months.

Wu Shimin's analysis believes that if the cost is taken into consideration, the number of loss-making enterprises and the extent of losses will increase sharply year-on-year, mainly due to cost growth and corporate efficiency factors. This situation continued in August this year and the loss is still expanding, reaching 41.2%.

The loss-making enterprises are mainly concentrated in small and medium-sized enterprises, and medium-sized enterprises have higher losses than small enterprises. In the first eight months of this year, there were 629 companies with a loss of 16% and a loss of 960 million yuan. Although the current number of loss-making enterprises has decreased from the previous two quarters, the amount of losses has increased, which is worth noting.

Wu Shimin said that considering the overall situation of last year and this year, one is that the cost of funds has risen dramatically. Since last year, many companies have received refunds for the purchase price, which has resulted in a very heavy financial burden for the entire company.

Statistics show that in 2011, the financial expenses of the entire industry increased by 49.8% compared with last year, respectively, higher than the 22.2% and 14.6% of the growth in business revenue and profits in the same period, and the annual net interest expense was 10.1 billion yuan, which was an increase over the same period of last year. 49.1%.

The costs of raw materials, electricity bills, logistics costs, environmental protection costs, land prices, etc. are rising, resulting in an inverted index between the purchase price and the ex-factory price, which means that companies are squeezing the profit margin while digesting the cost increase factors.

“The user’s default on bills, the amount of receivables has remained high, which is a very confusing issue for the industry. The cost of material costs in the cost accounted for a considerable proportion. In 2011, the account receivable due to user defaults was as high as 166.1 billion yuan, a year-on-year increase of 21.15%." Wu Shimin said that among them, wire and cable industry accounts receivable is 155.95 billion yuan, an increase of 19.6%. The accounts receivable of fiber optic cable companies was 10.16 billion yuan, a year-on-year increase of 28.4%. In 2011, when funding was particularly tight, user defaults increased the burden of capital costs.

On the other hand, users are charged to the production company for warranty money. Wu Shimin believes that with more stringent laws and regulations, more transparent information, more obvious market elimination mechanism, and quality assurance as a means of quality assurance, its role will be increasingly weakened, and can play a greater role in reducing the burden on enterprises. effect. Even I think we should cancel the warranty system.

“The cost competition should be built on the basis of continuous improvement of efficiency. In the future development, new advantages besides cost should be sought. In the long term, this cyclical influence is inevitable, so in the current situation, as a company, No matter from which aspect, we should pay more attention to saving, focus on efficiency, and focus on the development of quality, said Wu Shimin.

Break through the bottleneck and bid farewell to "win by volume"

Needless to say, the entire wire and cable industry is currently facing some difficulties and problems. The financial crisis has not yet fully emerged from the haze. The recovery has been slow. The domestic economy has been sluggish and growth has been slow. Wire and cable industry homogenization and other disorderly competition intensified, with thin profits, and difficulties in capital withdrawal. The product structure was in urgent need of optimization. Market development was obviously insufficient, and equipment, research and development capabilities were not strong, and supporting capabilities needed to be strengthened. Problems plagued the industry. Orderly development.

The "2012 Wire and Cable Industry Report" (hereinafter abbreviated as "Report") pointed out that China's wire and cable industry still has problems such as low barriers to entry and large numbers of companies. Especially after the financial crisis of 2008, under the background of accelerating the development of the real economy, a new round of investment booms have emerged in the wire and cable industry, and a large number of new enterprises have emerged. Blind investment has further aggravated the structural contradiction of overcapacity.

At present, there are thousands of wire and cable companies in China, and nearly 97% are small and medium-sized enterprises. There are only 19 large-scale enterprises. These 19 large-scale enterprise products only account for 11.7% of the national market share, and they have not yet formed a comprehensive participation in global competition. Leading companies or multinational companies. The world’s top wire and cable manufacturers, Nexans and Sumitomo Electric, far exceed China in terms of technology, production equipment, and innovative R&D. There is a big gap between China’s wire and cable companies and international cable giants.

Although China's wire and cable manufacturing industry is the largest in the world and has formed a complete industrial chain, the improvement of industrial technology capability and independent innovation level lags far behind the expansion of manufacturing scale, which leads to a high degree of homogenization of domestic wire and cable products, 90%. The production capacity is concentrated on mainland products with low technological content and low added value. High-end products such as aerospace, nuclear power, electronics, automotive wiring harnesses, and high-voltage cable ultra-clean cable materials still rely on major imports.

In addition, under the guidance of the “lowest price bid” mechanism, the quality of qualified products produced by lawful and trustworthy companies is often difficult to win because of high prices, while a few enterprises are bidding below the normal cost price and take measures such as cutting corners and shoddy goods. Production and improper use of fake and shoddy products are tricked into use and delivered, thereby shifting the cost of low-price bidding to the quality of the product, causing serious quality and safety risks.

On the whole, at present, there is still a big gap between the development level of China's wire and cable industry and its important position in the national economy, which embodies the prominent characteristics of the “big but not strong” “Made in China” industry. In the low-level development stage of winning, the competition in the domestic market for wire and cable products is extremely fierce, and the competitiveness in the international market is seriously insufficient. Many manufacturing companies seek to win in low-price competition and disorderly competition at the expense of quality.

Therefore, Wu Shimin suggests that under the current situation, we must overcome our bottlenecks and adapt to some new changes. From the perspective of past developments, the scale of the company has gone up, the stalls have gone up, the resources have been diluted, and various bottlenecks have slowly become apparent. We must continue to break through these bottlenecks. Enterprises often pay more attention to the more obvious issues of technological innovation, product upgrading, and talent team construction. However, in the current situation, we should continue to break through the company's business philosophy, strategic direction, and organizational capabilities. These bottlenecks may be hidden, but often It will play a key role in the development of the company.

"On the other hand, we must withstand the temptation in the innovation and transformation of enterprises. In the past, there was a saying that no import is a death, and the introduction is a death toll. At present, our innovation and transformation and upgrading are quite numerous. What exactly does the wire and cable industry do? It is also worth exploring.It mainly starts from the tiny, starts with small changes, is suitable for your continuous promotion, and makes your business healthier. Transformation and upgrading is not a mantra, but a method that is really suitable for new changes." Wu Shimin Sighed.

Environmental protection cable has become a trend

With the development of the world economy and science and technology, the demand for wire and cable is increasing and its performance requirements are increasing. Under the new economic situation and technological conditions, the development of the global wire and cable industry presents a new trend, and environmental protection cables have gradually become the focus of global cable development.

In view of the fact that conventional cables are very polluting, a large amount of dioxin, lead, cadmium, halides and other nuisance substances will appear in the manufacturing, use, and disposal of waste materials, and developed countries will use them less and less. In particular, after the European Union has formulated the ROHS Directive, countries in Europe, the United States, and Japan are increasingly demanding environmental protection requirements for their cables. They have banned the use or import of non-environmentally friendly cables. The development and large-scale adoption of eco-friendly cables have become The international mainstream.

Although the current environmental protection cable in China is lagging behind in foreign countries, it still conforms to the green trend and is constantly developing and improving the environmental protection cable market. On April 18th, 2012, one of the key projects of block industrial standardization in Zhejiang Province, the environmental protection wire and cable consortium standards, passed the inspection and acceptance, marking a major step forward in the development of environmental protection standards in China.

For highly efficient, environmentally friendly, high-end technology wire and cable, how to scientifically evaluate the technical level of new wire and cable projects and implement a production license system has become extremely necessary and urgent. The current wire and cable products that are included in the “3C” certification management range include wire and rubber insulated cables (including flexible cables), PVC insulated cables (including flexible cables and flexible wires), and cables for railway locomotives.

However, these are still far from enough. While actively launching innovative environmental protection products, the corresponding system and product quality supervision levels have yet to be improved.

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