The puzzling phenomena in cable industry and its solution

In the market economy tide, the rise and fall of enterprises is common. But there’s a puzzling phenomenon: some cable companies, despite continuous losses, still operate and won’t shut down. What’s behind this?

The cable industry has faced big challenges in recent years due to global economic changes and market demand fluctuations. Factors like raw material price hikes, labor cost increases, and tighter environmental policies have squeezed profit margins, resulting in the “open one day, lose one day” situation. But many firms stick to it, maybe due to confidence in the future, market competition compromise, or other reasons.
Reasons for persistence include maintaining brand and market share. Closing would mean losing brand value and share, and recovery would be costly. Employee stability and social responsibility are also factors as many cable companies have a large workforce. Stopping business would cause unemployment. Investment in tech and equipment is another reason; stopping means huge losses and reinvestment. And there are policy and market expectations.

For cable companies facing the “open one day, lose one day” dilemma, they can seek breakthroughs by strengthening cost control and refined management, expanding new markets and business areas like new energy and intelligent manufacturing, increasing R&D investment to enhance product competitiveness, and optimizing supply chain management to reduce risks. This shows that despite the challenges, there are still ways out through continuous innovation and progress.

As a cable equipment solution provider, Jiangsu Hopda Machinery has more than 20 years of experience both in operating cable factories and manufacturing cable machinery. For those who have never come across this industry, we provide a turnkey solution to assist in every aspect of starting from scratch. If you want to find out more, please do not hesitate to contact us via WhatsApp: +86 15265282763 or email us at owenwang@hopda-machinery.com.