The most critical of domestic cable cost control

The most critical of domestic cable cost control At present, China's cable industry has become increasingly fierce in the trend of big reshuffles, and profit margins have been continuously compressed. Actively lowering production costs, optimizing procurement methods, and changing market concepts can help China's cable industry get rid of low profits, promote the development and transformation of the cable industry, and thus change China's cable industry "big but not strong" situation.

In recent years, China's cable industry has grown at an average annual rate of more than 15% and has become the world's largest cable producer. At present, domestic cable companies have reached 10,000, and the increase in scale has brought about a decline in profit margins. The main reason for the analysis is that China's cable industry has grown in scale and expanded in an irrational manner. Technological progress and product upgrades have been slow. Repeated construction has been very serious, resulting in serious overcapacity in the entire industry. Most companies are at the low end. Market shopping, high-end market fell, and profits were meager.

According to statistics, in 2002, the profit rate of China's cable was 12.9%; by 2007, the profit rate fell to 8.56%; and by January to July 2012, the national cable industry's average profit rate fell to 4.11%; today, profits The rate is only about 3%. According to industry insiders, even such profit margins are based on fake, shoddy, and short goods.

In addition, the total amount of funds for accounts receivable and finished goods inventory in 2012 was 226.1 billion yuan, an increase of 10.6% over 2011, accounting for 47.9% of the current assets. Account receivables remained high, with industry receivables of 183.2 billion yuan from January to July 2012, a year-on-year increase of 12%; the growth rate of receivables was higher than 3.58% of sales growth.

In the reality that cable companies' production costs and procurement costs are high, the profits of cable companies have been eroded by many parties and the profit rate has been declining. It is understood that the cost of raw materials (mainly copper materials) in China's cable industry accounts for more than 80% of the total cost. Whether the price of materials rises or falls, it will have a serious negative impact on cable manufacturers.

When the price of copper rises sharply, the purchase of raw materials by wire and cable manufacturers will result in tighter monetary conditions and slower capital turnover. On the other hand, when the price of copper fell sharply, the production companies would not be able to digest the raw materials, which would cause the factory price to drop rapidly. It can be said that the "scissor difference" and "time difference" between the two just squeezed the profitability of wire and cable manufacturers. According to statistics from related departments, when the price of raw materials increases by 5%, the relative profits of wire and cable manufacturers will decrease by 4% or more.

When the price of copper falls sharply, the purchaser will often look for various reasons to postpone the delivery of goods, or cut orders or even fail to perform the contract. This will, to a certain extent, cause great pressure on the wire and cable manufacturing enterprises. The wire and cable manufacturers will bid, Winning the bid, to the organization of raw materials, production and delivery, the period is roughly one or two months to one year. If the time period is too long, the price risk of materials during the period is difficult for any company to guarantee.

However, the copper core cable also has its own drawbacks, mainly in the high price, installation is difficult, high installation costs, easy to cause theft, prone to aging, etc., so the industry urgently needs to develop low-cost, high performance copper core cable alternatives. The aluminum alloy wire shows its superiority more and more, and its price is lower than that of the copper core cable, and it has an exclusive advantage in long distance, large span, and ultra-high voltage transmission.

At present, Western Europe, Northern Europe, the United States, Canada, Japan and other countries have been widely adopted. Almost 80% of the transmission lines in the United States and France use aluminum alloy wires, and Japan has reached more than 50%. The use of Southeast Asian countries has increased rapidly year by year. The current application in China is less than 1%. Therefore, Chinese cable manufacturers can reduce production costs by actively developing "copper-based copper" technology.

In addition, how to effectively reduce procurement costs is critical for cable companies to increase profitability. Currently, the world's first cable material exchange, the Far East China Cable Material Exchange, “fully uses the spot market to reduce procurement costs” is a widely recognized method in the industry.

While insisting on technological innovation, research and development of new products, and taking the road of differentiation, cable companies gather a large number of raw material and cable companies through the Internet platform to form cable materials trading information ocean, providing direct and effective trading channels for more cable material manufacturers and cable companies. , reducing sales links and reducing transportation costs is an effective means of saving cable costs and increasing profits.

Dj Light Controller and madrix Led Controller are available in 8 and 16 universe configurations , the dj light controller and madrix LED Controller are equipped with different modes and features . It can be used as an Art-Net device , allowing the user to convert DMX to Art-Net for projects that call for such application.  The Artnet Controller , Artnet Led Controller and Artnet Dmx Controller are very easy programming to be done since they are work with Madrix. Whether you are looking for high grade professional equipment that will not let you down, or you are just starting off in the lighting industry , the Artnet controller is ready to undertake any task.  The easy artnet controller use for architectural led controller can control your Outdoor Led Lighting. It works with pc together to get the good performance. Signal transmit through cat5 cable, which let you realize long distance signal transmit in architectural led project.

Photo show of Artnet Controller:

DMX LED Artnet controller

Artnet Controller

Artnet Controller,Artnet Led Controller,Artnet Dmx Controller,Dj Light Controller

Shenzhen Iseeled Technology Co., Ltd. ,

Posted on