China Electric Power News: Cable industry shifts from high-speed development to steady development
This year, the cable industry is oversupply, and competition is more intense than ever. The cable industry is the second largest industry in the machinery industry except the automotive industry. It has now shifted from high-speed development to steady development. Now that the country is in the period of economic transformation and upgrading, I expect that the cable industry is not the most competitive at present, and cable companies have not faced the most difficult time. Ding Shanhua, chairman and general manager of Jiangsu Shangshang Cable Group (referred to as "Shangshang Cable"), said in an interview with China Electric Power News that the market is ruthless, and transformation and upgrading has become the only way for enterprises to survive and develop. On the rise, the transformation and upgrading is not a diversion, but to enhance the connotation and comprehensive quality of the enterprise and enhance its competitiveness. The enterprise should focus on the changes in the status quo and the market, and clarify the ideas and directions of the transformation.
Innovation into the main driving force for the development of the cable industry
"Transformation and upgrading, in addition to excellent quality, we must continue to innovate." Ding Shanhua told the "China Electric Power News" reporter that innovation is divided into technological innovation and talent management, and constantly improve the process and equipment, improve efficiency, reduce consumption, Use technology innovation to continuously develop products that the market needs. Only when enterprises are strong first can they pursue the competitiveness and vitality of the market. Only by constantly pursuing excellence, improving product quality, continuous technological advancement, adapting to market research and development of new products, and persisting in innovation, can we have the opportunity to stand in an invincible position in the industry.
“Quality improvement is endless, innovation is the foundation, it is also the key, and it is the core competitiveness of the company.” Zhu Hongxiang, the deputy general manager of Shangshang Cable, revealed that in the development trend of the industry, Shangshang Cable will also innovate in intelligence and automation. Strive to create a precedent in the industry.
Innovation has become the core competitiveness of enterprises participating in international competition. Jiangsu's Shangshang Cable Group ranked first in the most competitive “Top Ten Enterprises” in China's cable industry. At the same time, in the "CRU Global Insulated Cable Market Report" issued by the British Institute of Commodities, the international authority, the top 10 cable is ranked among the top 10 manufacturers of insulated cables with a global output value of over US$1 billion in 2013. China's only cable company among the top ten.
"This is the first time for China's cable industry to rank the most competitive enterprises, which is of great significance." Zhu Hongxiang said in an interview with China Electric Power News that this is a "full physical examination" for Chinese cable companies. Through the analysis, calculation and comparison of data in the appraisal, China's cable companies can help their own advantages and identify disadvantages. For the industry, it will create an atmosphere of chasing after you, which will promote the healthy development of China's cable industry.
In fact, insisting on innovation requires a lot of investment. At the end of the financial crisis in late 2008, Shangshang Cable still insisted on investing. At that time, it was said that "friends squeezed sweat and peers saw jokes." "Investment is risky, but it is not blind investment." Ding Shanhua told the reporter of China Electric Power News that it is not a rush to do it. We will invest when supply and demand are near saturation, and we must have a basic judgment on the market direction. The next step is to automate the transition to robot manufacturing.
In the opinion of some experts, the current wire and cable industry must achieve the best overall quality through technological innovation and management innovation. It is understood that over the years, Shangshang Cable has always attached great importance to innovation work. The three-generation nuclear power AP1000 shell cable independently developed by Shangshang has filled the gap in the world, and the company has also won the 2013 Equipment Innovation Pioneer List Management Innovation for its excellent management mode. prize".
Cable companies must always adhere to strategic orientation
“Do not seek the largest scale, but seek the best quality.” Ding Shanhua believes that the reason why Shangshang Cable has achieved today’s achievements is inseparable from its unique corporate culture. Under the four-character strategic goal of “upper, special, special and external”, each technological innovation has driven the rapid development of the company.
Among them, "special" is to adhere to "scientific and technological innovation", vigorously develop special cables, and strive to "people have no me" and "high-end wins." Under the guidance of this strategic thinking, a large number of high-tech and high value-added special cables independently developed by Shangshang have entered the market and covered many fields such as port machinery, rail transit, wind energy, photovoltaics, mining, nuclear power, etc. A new profit growth point. For the next development of the upper cable, Ding Shanhua firmly told the China Electric Power News reporter: "Insist on the essence, specialization, special and external, continuously enhance the connotation of scientific and technological innovation, develop more high-tech products, replace imports, expand exports, and strive to promote China creates and goes to the world."
According to Peng Jianfeng, a professor at Renmin University of China, many entrepreneurs in China are facing a strategic confusion, that is, no strategy can be successful occasionally, but it is difficult to continue to succeed. He believes that when a company grows to a certain scale, especially when it wants to become an industry leader, it must shift from an opportunity-oriented to a strategic orientation, from doing business to doing business, or it will fall into the opportunistic trap.
In fact, Shangshang Cable is a company that always adheres to its strategy. In response to the status quo of the enterprise and changes in the market, the strengths and weaknesses of the market have been identified. Over the years, Shangshang Cable has consistently adhered to the development strategy of “fine, special, special and external”, and finally achieved a prominent position in the industry. In this regard, Ding Shanhua said that for Shangshang Cable, it is more important to be stronger than to be bigger. Shangshang Cable will continue to stick to its main business and have no hesitation. Towards the company's vision, "Industry champion, century-old store, become China's cable manufacturing. The leader of the industry" is constantly moving forward.
God has always been different from the weak. Since the demand for the cable industry has been insufficient this year, the supply of products has exceeded demand, and competition is more intense than ever. China's wire and cable enterprises reach nearly 10,000, of which 97% are small and medium-sized enterprises. The average utilization rate of equipment is 30%~40%, far lower than the international equipment utilization rate of more than 70%, and more than 90% of the production capacity is concentrated. On the low end of the product. The industry's average investment in research and development is less than 1% of sales; high-end products such as aerospace, nuclear power, electronics, automotive wiring harnesses, and high-voltage cable ultra-clean cable materials are mainly imported.
In response to the above situation, transformation and upgrading has become a problem that cable companies have to think about. How should cable companies transform and upgrade? In Ding Shanhua's view, the key to the transformation and upgrading of the cable industry is to cultivate internal strength. This internal strength is to work hard on "product differentiation and cost leadership", that is, to develop high-end materials, develop high-end products, and seize the commanding heights of cable technology to form " "Differentiation of products", speeding up the elimination and upgrading of outdated equipment, improving production efficiency, and improving product quality, thus forming a "cost leadership"; the integration of the two, ultimately forming the core competitiveness of the enterprise.