Cable world

China's wire and cable industry must cross three hurdles

Nowadays, China's wire and cable industry, the "three little" companies with less capital, less skills, and less talents will not be able to avoid bad luck. A new round of reshuffle. Company innovation, transformation, promotion, and mergers and acquisitions activities are quietly unfolding. These companies' primary needs Cross three hurdles:

Fewer talents: According to calculations by a cable factory, the number of domestic cable professionals exceeded 980,000 at the end of 2015, but only one or two hundred undergraduates go to the company each year. It is not difficult to see the slowness and weakness of the cable industry in attracting talents. In addition, according to calculations, by the end of December 2014, less than 25% of the 2015 graduates had been selected by the company, and the completion rate of cable majors exceeded 95%. It is not difficult to see the urgent need for talents in the cable profession. Tight. In view of the urgent shortage of cable professionals, we have also seen that there are very few domestic institutions that focus on cable majors. Now, as long as Shanghai Jiaotong University, Xi’an Jiaotong University and Harbin University of Science and Technology have opened cable majors, let alone choose cable majors. There are not many students. It can be seen that changing the question of cable vocational talents also requires the support of relevant parts of the state to increase the cultivation of cable vocational professionals.

Fewer skills: Nowadays, cable career skills are slower and there are still fewer disruptive skills.

China's cable industry needs disruptive skill innovation, which will become a new blue ocean for cable industry. If a company can produce "huge" products in the cable industry, the interest rate will be very substantial. Innovation is inseparable from the innovation of skills.

Most of the innovations today are cloning and infringement. There is nothing wrong with imitating, but you must have your own intellectual property rights and your own innovation. In this age when skills are king, perhaps future skills are an important aspect of leading economic and social development. Whoever breaks it first can succeed.

Less funds: The wire and cable industry is expected to be heavy and light, so its production line investment requires a large capital plan, and the demand for liquid capital planning and capital turnover is high. The overall operating conditions of the wire and cable industry today: First, the occupational asset-liability ratio: an average of 60% to 80%, and some companies even exceed 80%; the second is the gross profit margin of sales: The gross profit margin of the cable industry is now about less than 11%. After subtracting production costs, personnel costs, financial costs, etc., the net profit of many companies is only 1% to 3%. Many companies are now on the verge of losing money. In addition, the quotations of major raw materials such as copper and aluminum have fluctuated greatly, making the original liquidity plan difficult to meet the needs of the new situation, and increasing the difficulty of the company's capital processing. Capital planning and the power of capital work have become the primary questions for the continued operation of special cable companies.