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How to avoid the three little questions
- Sep 06, 2016 -

At present, China's wire and cable industry, less money, less technology, talent, ' three ' will be hard to avoid doom a new round of reshuffle of enterprises, innovation, transformation and upgrading, acquisitions, is quietly under way, these enterprises mainly need to cross three obstacles:

First, less technology: the cable industry more slower, less disruptive technologies.

Technology innovation of Chinese cable industry need to be subversive, the cable industry will become a new Blue Ocean. If you have enterprise capable of producing wire and cable industry "on the big" products, interest rates will be very substantial. Innovation is inseparable from technological innovation.

The second, less talent: according to statistics, by the end of December 2014 and in 2015 all graduates have been employed less than 25% and cable professional college graduation rates than 95%, it is not difficult to see that the cable industry needs urgent personnel, tight. For the cable industry talent in urgent need, we also see that cable professional colleges to domestic few.

Third, less funding: wire and cable industry heavy light, so its product investments need a larger size and higher requirements on liquidity and cash flow efficiencies of scale. General business conditions of the wire and cable industry at present: one is the asset-liability ratio: average of 60%~80%, some companies even more than 80%; the other is sales profit: the cable industry's gross margin lower than about 11%, minus manufacturing costs, personnel costs, financial costs, many companies net profits of only 1%~3%.