Raise interest rates "boots" landing can trip up small and medium cable companies

On July 6, 2011, the central bank announced the rate hike again, raised the benchmark deposit and lending rates for financial institutions, and raised the one-year deposit and lending benchmark interest rate for financial institutions by 0.25 percentage points. The one-year interest rate for fixed-term fixed deposits is 3.5%, and one-year loan interest is 6.56%. Raising interest rates "boots" once again fell to the floor, causing wire and cable industry discussions. People are worried that this "boots" can only trip down a group of medium and small wire and cable companies?

Recalling the global financial crisis in 2009, it caused great panic in all walks of life. The wire and cable industry is no exception, and export companies are the most affected. Other companies are also scared and ready to suffer. With the gradual implementation of the country’s RMB 4 trillion capital construction investment, the financial crisis has had no significant impact on domestic-based companies. As a result, the wire and cable industry began to rise again and again.

This rate hike will naturally cause companies to some degree of financing difficulties. The relevant state agencies said that they will take measures to protect the financing channels for SMEs and keep them in a stable state of operation. If the SMEs account for more than 95% of the crisis, it will seriously affect the realization of the overall national economy GDP plan indicators. Looking at all aspects of the information, it seems that this “rising boot” will not have a great impact on the wire and cable industry, and it will not be able to stumble on a group of SMEs. This judgment can be drawn from the following aspects.

First, the overall development of the wire and cable industry is normal. Judging from the development trend of the wire and cable industry in recent years, despite fierce competition and falling interest rates, there has been no ups and downs. No matter large enterprises or small and medium-sized enterprises, there has been no poverty phenomenon that has not been closed. A small number of individual companies that are in deep trouble and have closed down are all caused by their own mismanagement. They are not in a bad environment. In addition, industry consensus is no longer one-sided to intimidate enterprises with the economic crisis, but objectively describe and analyze the industry situation and guide the healthy development of the industry.

Second, wire and cable companies are becoming increasingly rational. After the test of the last financial crisis, companies learned how to cope with unexpected and unfavorable factors. They are no longer blindly subject to public opinion intimidation, nor are they no longer scaring themselves and gradually accumulating experiences of change. As for the “irrationality” that people criticized in terms of market competition, to a certain extent, it was caused by unsound and imperfect market economic rules and did not fully explain their level of corporate management. Some companies with higher management standards still "irrationally compete." This rate hike will naturally lead to difficulties for some companies in financing, but the product market in this industry is better. They can better maintain the operation of the company in a "small profits but quick turnover."

Third, wire and cable companies do not rely entirely on banks. Although indebtedness of industrial enterprises is the practice of industrial companies worldwide, not every company is 100% dependent on bank loans. Going all over the country will find that there are many companies in the industry, including listed companies, whose funding status is not very poor. Some companies not only maintain the level of “well-to-do life,” but are also engaged in technical reforms and new projects. Heated. Some companies even invest in different industries (such as agriculture, real estate, hotels, restaurants, and tourism industries). Can you say they have no money? The overall impression is that the wire and cable industry is "not bad money."

In view of the above three aspects, it can be seen that this "shoe" of raising interest rates will not only deter SMEs, but will also make them feel more exercised and knowledgeable and further enhance their immunity.

Although the wire and cable industry seems to be a "not bad money" industry, it cannot always be "being the world's largest cable industry" and "the country's second largest industry". Regardless of industry organizations or enterprises themselves, they should seriously consider the issues of “industry transformation” and “corporate transformation”.

The so-called “industry transformation” means that the government must guide the entire industry to develop to higher levels of technology, management, and branding, and completely get rid of the vicious competition with low-end products, and create a batch of companies and products that can be called out in the world as soon as possible. Brands do not have to mislead companies with “fake, big, empty” so-called “guidance”, nor do they just throw a few numbers at companies. Of course, to achieve "industry transition" is not an easy move, because now is no longer the planned economic era, and all are arranged by the state departments. The current situation is that local governments are only concerned with GDP, and the industry organization is only a non-governmental administrative organization. It has no binding power over enterprises, and it is local governments that can constrain enterprises. What the company hopes is that industry organizations can truly erect a banner of glory, nurture the strength of a backbone enterprise, lead the whole industry to advance, let the whole industry catch up with its goals, learn from examples, and make the enterprise meet the “financial turmoil”. Or what "boots" landed, it will be safe and sound.

The so-called “corporate transformation” means that the company must pay attention to its own image, including the image of the enterprise, product, quality, brand, and service. In particular, individual SMEs must completely get rid of the "small-scale peasant economic ideology", pay attention to enterprise management, product, quality and brand innovation, resolutely resist counterfeiting and low-cost dumping, and establish a fair and just market competition order. It is not easy to achieve "business transformation". First of all, we must carefully sum up the lessons learned, learn modestly from those successful companies, and find innovative entry points based on their own actual situations. We must not be arrogant, and must not be “ignorant” to do those that are contrary to social morality. thing. Otherwise, if we fail to effectively reform the former Africa, under the new circumstances of the increasingly sound market economy mechanism and anti-corruption, we will one day be stumbled by such "boots."

In order to reverse the chaotic situation in the wire and cable market competition, severely crack down on fake and shoddy products, severely punish unscrupulous companies, strictly control product quality, foster a fair and equitable market competition mechanism, and allow users to use safe and reliable wire and cable products. The General Administration of Survey and Inspection is currently implementing a nationwide special rectification campaign for wire and cable quality. Local governments and supervision departments are setting off a special rectification of wire and cable quality. This activity itself is a love for wire and cable companies. It is for companies to grow healthy and strong and not to be stumbled by the "boots" that fall from the sky.

Although this "rising boot" has little impact on most wires and cables, it cannot be taken lightly, because some things are really "people are not as good as they are." Maybe someday what boots fall?

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