Cope with future opportunities and challenges in the wire and cable industry

As the “Eleventh Five-Year Plan” ends and the “Twelfth Five-Year Plan” starts, the wire and cable industry once again ushered in a new stage of development and stood at a new starting point. The future faces many opportunities and challenges. We need to think forward, plan scientifically, and work together. Using today's meeting, I would like to discuss with the general public in the light of the industry's "Twelfth Five-Year" development plan and the current common issues of corporate development.

I. Judging the new changes in the current economic situation and rationally facing opportunities and challenges.

Since 2010, the effects of economic stimulus policies have begun to weaken, the European debt crisis has caused the fragility of the global economic recovery, and factors such as the housing market, stock market and material prices have fluctuated significantly, which has increased the uncertainty of China's economic growth. It was once inferred that if the European debt crisis caused the global economy to have "secondary bottoming" risks, then the Chinese economy also has such risks. As a result, the market’s anticipation of the current economic situation in China is too pessimistic.

In fact, the current global economic existence of "double bottom" probability is already very low. This is because this year, except that developed countries in Europe and America are deeply affected by the European debt crisis, they have influenced the emerging economies like the BRIC countries, but economic growth is better than expected, even if some key economic data of developed countries in Europe and America are also Gradually improve. The current global economic situation and the bad situation in 2008 are no longer the same. In the same way, the current economic situation in China is also the same, and it will still develop in the direction of its own “structural adjustment and promotion of transformation”. The future economic growth prospects are still relatively optimistic. Second, judging the economic situation must strive to be rational and objective. In other words, to judge economic sentiment should not be used to prevent “panicked” but also to prevent excessive interpretation of “overkill”. In the future, China’s economic growth will shift from investment-driven economic growth to demand-driven economic growth, and both external demand and domestic demand need attention. To this end, we must firmly grasp the "domestic demand", firmly grasp the "outside demand", and realize a rational game in the tide of globalization.

In the future, China's economic growth will not slow down. Because of the development of China's economy, there are advantages that are more important than cost advantages and have always played an important role, that is, institutional advantages. The imperfect market economic system has made China not only surpass the general market economy countries and developed countries, but also is superior to other developing countries that also have labor cost advantages and even resource advantages. This may be because: First, the government has a Strong regulatory power can directly and indirectly control various resources and carry out administrative intervention. At the same time, the state-owned economy occupies a dominant position in important industries and fields related to the lifeblood of the national economy, and it has a solid strength to guide the development of the entire economy. Among the top 500 Chinese companies that have just been released, the weight and dominance of state-owned enterprises have become more pronounced. The second is the enthusiasm and integration ability of local governments. Under the mature market system, the integration of various production factors into production capacity is the mission of the entrepreneur. But in China, local government officials are also keen on this integration. The third is a semi-open economy. China has always adhered to its “financial strategy outside the country” in its financial policies and strictly controls foreign exchange. Even if transnational financial capital is raging everywhere, like the financial crisis in Southeast Asia, trampling on Greece, and attacking the British pound, China cannot do anything about it.

It can be foreseen that the domestic and international macroeconomic situation is getting better, and wire and cable companies will be very useful. However, at present, the cable industry is “fighting against tigers”, companies compete with each other and compete for prices, and prices are getting lower and lower. The wire and cable industry not only fails to obtain reasonable and legitimate profits, but also does not receive the respect of the society. An industry is fighting too hard and harming people is not good for themselves. Its development is bound to be distorted. A group of companies that have grown up in an environment of civil unrest, bargaining, disorderly competition, and mutual slander will often be regarded by the society as low-quality, untrustworthy, and not respected by society. Even if customers and consumers benefit from it for a time, they will not say good things. Moreover, this kind of profit is risky and the product is not safe. A direct consequence of the loss of industry integrity is that customers intentionally set restrictions, for example, when bidding on cable projects, they often require companies to bring along official seals, business licenses, qualification materials, and other large boxes of original materials, and even require legal representative to sign on site personally. This further increases the difficulty of the company's work and artificially increases the operating costs. It can be said that the current chaos encountered by the cable industry has almost reached its limit. If this status quo continues for a long time, it will be difficult for the industry to develop healthily.

In addition, cable companies will face many difficulties in their future development. The impact on enterprises comes from various aspects, including the requirements of laws and regulations, rapid development of science and technology, price pressures, uninterrupted lawsuits, competitive pressures of multinational corporations, and the rise of markets in emerging countries. At the same time, China's wire and cable industry is in an oversupply, the lack of effective supply of high-end products, product quality is uneven, outstanding structural conflicts, low input and output, relatively lagging technological innovation capabilities and other issues have become increasingly severe, and began to affect the healthy development of the wire and cable industry. Compared with foreign cable companies, especially technological innovation is weak and effective market share is low. It can be seen from this that the current status of China's wire and cable industry is not optimistic and cable companies are facing many new challenges.

To get rid of the current chaos in the cable industry, we must have ideas and actions to further strengthen the industry's self-discipline management. In particular, industry entrepreneurs must hold high the banner of rejuvenation and take responsibility for the industry, society, and the country. On the one hand, industry associations should assume management responsibilities and actively explore the industry management system to provide institutional guarantees for the orderly development of the industry. On the other hand, within the allowable scope of the market, enterprises shall coordinate and ventilate each other according to the principle of mutual benefit, engage in an industry alliance, strengthen self-discipline, and purify the industry so as to protect the interests and healthy development of the industry. Although this approach does not conform to the principle of market economy, it is also feasible in the process of market economy development. The invisible hand of the market is pushing our business, or else you are living, otherwise you are going to cross over. To this end, we must understand the different corporate cultural connotations and reasonable appeals of consumers and stakeholders, truly understand and understand the concerns of society for scientific and sustainable development, and risk to do different things. A real company and enterprise. The mission of the family is to allow his company to have sustainable benefits and development, and to constantly explore new markets, new technology areas, and establish strategic alliances, alliances, and other relationships to deal with the complex world and complex economy. surroundings. No one can change, but only before they change.

Second, review the situation to grasp the new trends in the development of the industry and promote the sustainable development of enterprises.

At present, China has leapt to the world's largest cable manufacturing country, accounting for 27.6% of the global cable output value. Although China is currently the country with the fastest growth in cable consumption in the world, the level of cable consumption per capita is about one-fifth that of developed countries, which is equivalent to the level of Latin American countries. Therefore, the demand potential of the Chinese market in the future is still huge. With the acceleration of industrialization and urbanization in China, in the next few years, investment in the major industries of the national economy related to the transmission and distribution industry will gradually increase. New energy, smart grids, automobiles, ships, military, nuclear power, railways, airports, The rapid development of industries such as construction, household appliances, the Internet, and urban rail transit, as well as the country's adjustment and planning of the regional economy, has led to rapid growth in cable demand, which has further promoted the continuous upgrading of cable products and technologies, and has become a driving force and opportunity for the rapid development of the wire and cable industry. According to conservative estimates, the domestic cable market demand growth rate will not be less than 8% to 15% in the next few years, especially for large enterprises in the industry, and the growth rate will be higher than the industry average.

The new energy revolution will be the fifth and most important scientific and technological revolution in the history of mankind. Due to the special historical background, the first four changes in China have failed to catch up, and this time China should not miss it. Vigorously developing nuclear energy, wind energy, solar energy and other green energy and low-carbon energy, and reducing dependence on fossil fuels have become an important part of China's industrial restructuring. In August, the state announced the list of enterprises that have eliminated backward production capacity, covering 18 industries including cement, papermaking and electrolytic aluminum, and 2087 enterprises, which must be closed before the end of September. At present, there are about 1.2 billion kilowatts of wind resources that can be developed in China, and the area of ​​available wind energy accounts for more than 96% of the total land area. In 2015, the installed capacity of wind power will reach 90 million kilowatts, and by 2020 it will reach 300 million kilowatts. The total investment will reach 3,000 billion, and the average annual increase will be 12 million kilowatts in the next 10 years.
Following the implementation of the "Development of the Western Region" and "Revitalization of the Northeast" strategies at the beginning of this century, the development of the marine economy will also become a national development strategy. China is a major oceanic country with more than 3 million square kilometers of sea area and 18,400 kilometers of coastline, and more than 6,000 islands along the coast. Among them, shallow sea continental shelves estimated that the oil resources amounted to nearly 30 billion tons, natural gas resources amounted to 14 trillion cubic meters, and the oil and gas resources in the Nansha Sea area amounted to 32 to 43 billion tons. China's South China Sea, rich in oil and gas resources, is known as the second Persian Gulf". At present, the discovery rate of offshore oil and gas resources in China is still very low, especially in the area of ​​300 meters deep to Shanghai, and 90% of the area has no exploration. The main reason is that the deep-sea oil and gas development technology and equipment are backward. Therefore, the development of marine engineering equipment is the primary task and strategic focus of the national ocean development and Blue Ocean strategy. It is predicted that each year, the construction and maintenance of offshore oil platforms in China will require the use of 13,000 kilometers of various cables. By 2015, the market demand for submarine cables will be approximately 5,000 kilometers.

China's planned urban population will reach 1 billion in the future, which can basically meet China's peak population of 1.46 billion in 2030, and the urbanization population will reach 65%.

We must speed up the transformation and upgrading of product structure and promote the “advanced” of traditional industries—high-end (high-tech), high-efficiency (high value-added), and low-carbon (low-energy consumption). We must achieve high-end profitability and expand volume. Doing scale, realize the "diversification" under the related development. At the same time, we will vigorously develop special and high-end cable industry clusters, continue to take the lead, optimize the industrial chain, and extend upstream and downstream products to achieve "vertical" industry development. Dedicated to the construction of smart grids, low-carbon economy, and circular economy, actively introducing low-energy, high-efficiency, high-output technological equipment, strengthening research on process energy saving, management and energy saving, and focusing on military, nuclear power, superconducting, wind energy, solar energy, etc. The research and development of electric cables and special cable materials in the fields of green, environmental protection have continuously improved the ability of independent innovation, creating green “benchmarks” and achieving the sustainable development of the company.

Third, actively explore new modes of modern enterprise management to enhance the company's core competitiveness.

The “big” of the enterprise derives from the market, the “excellence” of the enterprise derives from the strategy, and the “strength” of the enterprise derives from the management. The development history of Chinese enterprises in the past 30 years shows that in the past, entrepreneurs were resource-oriented, and in the future they must turn to a strategically oriented and management-based stage of comprehensive competition. Entrepreneurs should be good at singing, enlightening, preaching, and walking. "Tao", a "first", a "go." Therefore, "Tao" is a combination of the head and the feet. The head is on the top and the foot is on the bottom. The mind decides the pace and the train of thought determines the way out. Facing the severe challenges posed by various difficulties and problems in the future, we must recognize the new trends in the industry development and timely carry out strategic "transition" adjustments to firmly grasp the initiative to ensure that the first move will be followed and the business will be completed. The industry will continue to be promoted. And the rapid development of enterprises.

According to the economist Schumpeter, the fundamental reason for the continuous development of the market economy is continuous innovation, and the existence of entrepreneurs is the fundamental guarantee of innovation. Schumpeter said that the entrepreneur is such a group of people: they integrate new resources, innovate new technologies, new production methods, and new organizational models, break the original economic equilibrium, and ultimately obtain profits while meeting demand. Entrepreneurs should dare to think and act decisively, combine the management of traditional business models with the needs of modern business development, and must also improve and innovate. If the enterprise does not innovate, it will die and innovation will be the fate of the company's survival. Innovation may also be subversive.

Management is the key to improving the core competitiveness of enterprises, and innovation is the constant extension of management. In the face of the ever-changing characteristics of domestic and international market competition, enterprises can only establish themselves in an invincible position by managing innovation and creating new values. Only by constantly exploring new ideas for management innovation, can companies be able to achieve complex and ever-changing market competitions. win. Management includes hard management (control-based) and soft management (guide-based). The time spent on "management" and "rationality" by corporate managers in China is 80% and 20%, respectively, while foreign companies are just the opposite. Management must constantly regulate the systems and processes, and it must strengthen the long-term implementation of the system and process execution capabilities. Because the best management system, once it is broken, will lose its due role and will have even greater negative effects. Therefore, management is insisting that management is performed on its own initiative. We must use cultural guidance and fair rewards and punishments to rationally mobilize employees' emotions. We must first make employees feel good and let employees act. This will result in active execution. For managers, this is a subject that needs long-term adherence.

The future market environment and economic development are complex, diverse, volatile, and uncertain. We must respond flexibly to the challenges posed by uncertainty. The future economic development environment is not what we can imagine. Even if everything on the surface of the company is still working properly, the next second may be destroyed. Therefore, modern management does not advocate the mechanical, rigid, rigid constraints, but it is never the arbitrary, systemic, and free performance. Instead, it should start with the maximization of corporate benefits, continue to motivate employees, and stimulate the production of various factors. Vitality is a dynamic, innovative management process that advances with the times. In the tradition of excellence, we must carry forward and carry forward the bad habits. We must correct it. For management methods and management methods that do not suit the development of the enterprise, we must continue to improve and constantly innovate management ideas and management concepts. Therefore, innovation is not always revolutionary. Innovation is not about how great the invention is. Innovation is innovation. Innovation is innovation. For companies, innovations in markets, technologies, management, and even ideas that can better adapt to market needs and generate value for the company are innovations.

The most important thing for innovation is “core innovation”, which is to identify trends and commercialize innovation. We must put the needs of our customers first, and secondly, we should integrate technologies, services, resources, and other factors on the basis of satisfying the needs of our customers. We must convert the needs of the market and customers into faster, better and more innovative products. New products, new technologies, new services. The world's existing technologies are not fully commercialized and market-oriented everywhere. The key is how to explore. Therefore, in the aspect of technology research and development, companies should always adhere to the market and user orientation. They should not only pay attention to the general needs of the wire and cable market, but also be good at tapping potential individual needs. In other words, we must focus on the market and constantly open up sources of innovation and profit growth. In the future, new energy sources, new materials, energy conservation and environmental protection, low-carbon technologies, and green economy will be the focus of a new round of industrial development. We will use excavation and utilization to promote industrial transformation and upgrading, and develop high value-added products that surpass users' expectations and occupy. The commanding heights of future economic development will continuously increase the profitability of enterprises and the competitiveness of the market.

The core of innovation lies in the "innovation of talent." Talent is the core asset of a company. The value of talent is reflected in scarcity or irreplaceability. Whoever has a large number of talents with high quality and strong ability to innovate will be in a competitive position. Excellent managers, technical experts, sales elites, and even first-line operating experts, as long as they play their roles and do their best, are all valuable assets of the company. At present, there are more than 3 million engineers in China and there is a large team of skilled workers. However, what we lack most is not capital but talent. With regard to the introduction of talents, we must not believe in "taking on the doctrines" and blindly dig into others' corners. We should also base ourselves on the cultivation of talents. Enterprises should have two production lines in parallel. One is the production line for manufacturing products and the other is the production line for manufacturing talents. Entrepreneurs should be good at "recognizing people, loving people, employing people, educating people, attracting people, bringing people together, and sending people out." They must speed up the improvement of personnel training and incentive mechanisms, and shape a core talent team with common values ​​and standards of conduct.

Since the establishment of Baosheng for 25 years, it has consistently persisted in exploring, innovating and practicing the market model, management mechanism, and corporate cultural connotation, and gradually shaped the spirit of “solidarity, hard work, and excellence” and formed a “responsibility”. The “four-in-one” corporate culture values ​​centered on “solidarity and strength”, “marketfulness”, “innovation and effectiveness”, and “harmonious sentiment” are the core values. In particular, since the 10th Five-Year Plan period, we have repositioned and upgraded the company’s development goals and strategies, and timely put forward five strategies: “marketing innovation, technological innovation, brand innovation, talent innovation, and capital innovation”. These strategies have been introduced and implemented. A series of management innovation measures: the marketing concept of "market first, service first, brand success"; independent innovation system of "meeting the market, adapting to the market, and guiding the market"; "no idler, no lazy, no loss "Human" incentive policy; "horse racing" project construction mechanism; the company's own innovation practice in the park; "the use of foreign capital to attract private capital, for state-owned assets," a mixed capital model; "one industry-based, multiple development “Industry development ideas... In the future, Baosheng will also shoulder the corporate mission of “transmitting light information and creating a national backbone”, and strive to become a “proven provider of energy and information engineering solutions” to create influential cables in the world. Enterprises, build a century-long Baosheng Foundation.

Forewarned is forearmed, without prejudging the waste. The international and domestic economic situation and the cable market are constantly changing. Changes are natural laws. They are absolute, and invariability is relative. We should not only pay attention to macroeconomics, forecast future uncertainties, and scientifically position corporate development strategies. The government departments must adopt various policies to force companies to innovate independently, change the mode of economic development, change the extensive mode into an intensive form, and enhance the ability of enterprises to innovate. At the same time, the cable industry should strengthen self-discipline, achieve effective maximization of business interests through effective management, continuous innovation, and extensive cooperation, and promote standardized and healthy development of the cable industry. We have reason to believe that with the efforts of all entrepreneurs, the future of the cable industry will be even better, and the prospects for cable companies will be even broader! In the next 20 or 30 years, we will see a more ambitious picture: With the help of the new wings of industrial upgrading and the domestic demand market, China will complete the historicity from the “world factory” to the “world manufacturing center”. change.