As a developing country, China's manufacturing industry basically starts from low-end imitation. China's wire and cable industry is no exception. As the world's largest cable industry country, China's wire and cable industry is crowded with more than 7,000 wire and cable companies. However, more than 97% of the production capacity is concentrated on low-end products, and the 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 mainly rely on imports. Especially in recent years, China's wire and cable products have become more and more homogenous, and the competition in the low-end market has deteriorated, and profits are extremely thin. The average utilization rate of enterprise equipment is only about 30%-40%, which is far lower than the level of equipment utilization of more than 70% in advanced countries.
One sign of a mature market is the high concentration of industries. In developed countries such as Japan and the United States, the market share of the top four companies in the wire and cable industry has reached more than 40%. However, China's wire and cable industry not only has low capacity utilization rate, but also has extremely low industry concentration. There are nearly 10,000 state-owned and above-scale enterprises in China's cable industry, and there are only a dozen large enterprises. These dozens of large enterprises only account for 10% of the country. More than a dozen market shares, nearly 97% are small and medium enterprises. Judging from the distribution of the distribution centers of the enterprises, the five major production and distribution centers in China, Jiangsu, Guangdong, Zhejiang, Anhui, and Hebei, in the first two years of the sampling inspection conducted by the AQSIQ, the number of samples accounted for 63.1% of the total sample. The qualified rate of product sampling enterprises were 79.2%, 87.9%, 91.2%, 78.7%, and 81.9%, respectively; the pass rate of random inspection products was 86.0%, 89.8%, 92.8%, 86.4%, and 83.8%, respectively.
The low concentration of the industry does not only mean that the market maturity is not high, but also reflects the quality of the industry. Such quality inspection results reflect the low concentration of the entire wire and cable industry, nearly 97% of small and medium-sized enterprises, and the market share of large enterprises is very low. The international competitiveness is not strong, and there are few leading enterprises that can fully participate in global competition. The independent research and development and innovation capabilities are seriously inadequate. High-end products such as wire and cable for nuclear power are basically dependent on imports; most enterprises have weak technical foundation and lack of professional talents. The homogenization is serious, and the low-level price competition in the low-end market is fierce, and the product quality control and continuous improvement are weak.
Vicious competition and disorderly competition are the quality environment faced by small and medium-sized wire and cable companies. Market chaos is one of the important factors affecting the quality improvement of small and medium-sized wire and cable enterprises. For example, the proliferation of counterfeit and shoddy products and vicious price hikes have prompted small and medium-sized wire and cable companies to reduce their product prices to participate in market competition. Some small and medium-sized enterprises Wire and cable companies cannot obtain legitimate profits by improving product quality, which has led to a considerable number of small and medium-sized wire and cable companies not willing to invest energy and resources in quality management. Therefore, the market competition order is regulated and counterfeiting is countered. The formulation of competition rules is an important measure for the promotion of quality management by small and medium-sized wire and cable enterprises at all levels of government.
The backwardness of quality concept is a fatal problem for many small and medium-sized cable companies. Most small and medium-sized wire and cable companies, whether they are management or front-line workers, generally have a certain deviation from the understanding of quality and quality management. There is insufficient understanding of the connotation of product quality and insufficient understanding of the content of quality management. Many leading cadres of enterprises still believe that product quality is a matter of quality assurance department, and thus rely too much on quality inspection. When the quality assurance department strictly enforces the standards, some leaders even think that this is the quality assurance department in the card enterprise. The leader even blames the head of the quality department. Are you standing on the user's stand or standing on the company's position? It is difficult to effectively carry out the work of the quality assurance department, and it also greatly dampens the enthusiasm of quality management personnel. Some operators have concealed and reported problems after they found quality problems in operation. Some workshop managers even blamed the workers who value quality. In many small and medium-sized wire and cable companies, quality is life. Quality first is not reflected in all work. When quality conflicts with other indicators such as production and sales, quality often becomes a victim.
The quality management commitments of small and medium-sized wire and cable companies are difficult to honor and often give way to other interests. The leadership role of top management is the driving force for enterprises to promote total quality management and improve product quality management. However, many small and medium-sized wire and cable companies are currently very arbitrarily leading the work, and cannot abide by their own management commitments, resulting in the failure of the quality of the company. Top management often violates management commitments. These business leaders do not have a clear quality strategy. Quality is not always in the first place in their minds. It is impossible for enterprises to form a quality culture atmosphere with customer focus. Management work lacks the necessary environment and impetus.
The quality talents of small and medium-sized wire and cable enterprises are very tight, and the participation of all employees is low. In addition to high-tech enterprises, most small and medium-sized wire and cable companies have low investment in research, new products account for a small proportion of total sales, and small and medium-sized wire and cable companies are mostly labor-intensive, and equipment is relatively simple and backward. Product quality is highly dependent on personnel. Unfortunately, the quality professionals of small and medium-sized wire and cable companies are very scarce, which greatly limits the space for improving the quality of small enterprises. China's small and medium-sized wire and cable enterprises use statistical technology to control the production process is extremely low, and there are few analysis of process capability. Enterprises use more arrays, causal maps, etc., but they cannot prevent the failure of the production process. Quality inspection is still the most common and most important means, and extensive management still dominates the market. As a result, the loss of non-conforming products remains high and the profitability of enterprises is not strong.