The Chinese wire and cable industry must overcome three hurdles

Nowadays, in the Chinese wire and cable industry, the "three few" companies with less capital, less skills, and less talent will inevitably face a new round of reshuffling. The activities of company innovation, transformation, promotion, and mergers and acquisitions are quietly unfolding, and the primary needs of these companies are to cross three hurdles:

Talent shortage: According to calculations by Henan Cable Factory, the number of cable professionals in China exceeded 980000 by the end of 2015, but only one or two hundred undergraduate students go to the company every year. It is not difficult to see the slow and weak absorption of talent in the cable industry. In addition, according to calculations, by the end of December 2014, less than 25% of all graduates from the class of 2015 had been selected by the company, while the graduation rate of students majoring in cables exceeded 95%. This also shows the urgent and tight demand for talents in the cable profession. In response to the urgent shortage of cable professionals, we also see that there are few domestic institutions that focus on cable majors. Nowadays, only three universities, Shanghai Jiao Tong University, Xi'an Jiaotong University, and Harbin Institute of Technology, offer cable majors, let alone not many students who choose cable majors. From this, it can be seen that addressing the issue of talent in the cable industry requires support from relevant government departments to increase the cultivation of cable professionals.

Lack of skills: Nowadays, cable professions have slower skills and still have fewer disruptive skills. The disruptive skill innovation demanded by the Chinese cable industry will become a new blue ocean for the cable profession. If a company can produce "huge high-end" products in the cable industry, the interest rate will be very considerable. Innovation cannot be separated from the innovation of skills. Nowadays, most innovations are cloning and infringement. Imitation is not wrong, but it requires one's own intellectual property and innovation. In this era where skills dominate, perhaps in the future, skills will be an important aspect leading the development of the economy and society. Whoever breaks first will succeed.

Lack of funds: Due to the heavy and light materials used in the production of wires and cables, there is a high demand for capital planning for their production lines, as well as a high demand for working capital planning and capital turnover power. The overall operational status of the wire and cable industry today is as follows: firstly, the occupational asset liability ratio is on average 60% to 80%, with some companies even exceeding 80%; The second is to sell gross profit margin: Nowadays, the gross profit margin of the cable industry is about less than 11%. After deducting production costs, personnel costs, financial costs, etc., the net profit of many companies is only 1% to 3%. Many companies are now on the brink of losing money. In addition, the fluctuation of quotations for primary raw materials such as copper and aluminum has made it difficult for the original working capital plan to meet the demands of the new situation, and has also increased the difficulty of handling company funds. The planning of funds and the power of financial work have become the primary concerns for the continued operation of special cable companies.