Rubber cable technology market development dilemma

Around 2008, despite the global financial crisis, this does not seem to hinder the domestic rubber cable development pace, even in 2011, the domestic cable output of 1 trillion yuan of superior performance to beat an old rival, the United States, to become the world's first production in the country. The reason that can make these impressive achievements, first with the national economy's fast development, even in the financial crisis, the government appropriated 4 trillion yuan of funds to rescue the market for rubber cable industry development provides a powerful help.

But since 2012, the domestic rubber cable industry is facing great development obstacles and even can be said to can't to do anything. The first is the capacity of excess capacity, the lack of operating rate, and other issues causing serious lag in the industry development; the second is the low-profit margins caused by weak support for SMEs in the domestic sector, which have delisted. Caused by the rubber cable industry's profit rate is low for many reasons, such as raw materials prices rising sharply, the market competition becoming increasingly fierce, and stage seasonal influence. 

However, the author thinks that this did not touch on the welded to the essence of the low-profit rate of the cable and the essence of the problem lies in the domestic rubber cable industry technology without the root cause of the rubber cable industry development dilemma now.

In fact, the rubber cable industry in China has a very big deficiency compared with international technology. The most prominent problem is that local rubber cable companies in the overall R & D are not keeping abreast of current world rubber cable in the development pace, although the local technology also made some achievements, the high-end rubber cable research is still very weak, very difficult and military rubber cable giant compete. In addition, rubber cable companies in the technology system basically in an on foreign technology, "copy" or "translation" stage, even imitate have failed to achieve 100 percent, innovation is impossible.

Now a reality, rubber cable prices in the fast and continuous underground, and rubber power cable manufacturers are constantly input costs and effort to restore the declining prices and profits, in the cruel competition, mainly to see which side the average speed faster. Rubber cable manufacturing enterprises want growth, only to have two necessary conditions: rapid technology update ability; adapt to update the technology necessary for product updates, and these products' commercialization of organizational efficiency.

From the point of view of the status quo of the rubber cable industry, China rubber cable companies obviously do not have the first ability, not their own R & D system, and the so-called product innovation is in other people's products on the basis of the preliminary imitation, the owner of technology is not to sell their capital to the US, the so-called Chinese rubber cable industry in a certain extent only assembly plant and a reprocessing plant. 

From the second point of view, China's rubber cable enterprises are still not established themselves in response to rapid technological changes, the type of enterprise organization form, loss-making enterprises giant high inventory has proven the lack of our ability to operate the organization.

Rapid technological change is not only a technical problem, it determines the evolution of the structure of the organization to a certain extent. China rubber cable enterprises because of the lack of technical ability to quickly update, to a large extent inhibited the China rubber cable enterprise fast operation enterprise organization's development, and the morphology and very easy to create inventory for the enterprise, and the inventory, in turn, inhibits the technological innovation of the enterprise.

We should keep a clear understanding, we had to rely on the low price of a factor of production price model itself is wrong, because the low price of a factor of production, the price advantage is not determined by the price of these elements, but behind the technology and management of organizational variables to decide, who mastered the technique and management variables, in turn, who will be able to master low price advantage in the factors of production, so that the local rubber cable company's real growth should be the growth of technology and management, and is not a momentary immediate interest.

It is clear that the fundamental factor that determines the development of the domestic rubber cable industry is not the vicious competition in the market, it is not the rising cost of raw materials, but the key lies in technology and management issues. 

Technology and management problems can not be resolved, rubber cable production enterprise's advantage, it will be impossible to reflect, to break into the high-end market, want to increase the profit rate amounts to Arabian Nights. When the time comes, can only be foreign cable companies holding, pressing play