Examine the main challenges in wire and cable manufacturing, such as supply chain problems and quality control concerns, and discover how business leaders get beyond them to ensure consistent output.
In order to develop nation’s infrastructure, electricity and data transmission are essential. In this regard, wire and cable manufacturers in India play a vital role in meeting cable demands.
Electricity is required in factories or industries, residential houses, commercial buildings and offices. For electrical transmission, power cables are required but for transmission data from one place to another, we require data cables or fiber cables.
Manufacturers of wire and cable in India face a variety of difficulties. Let us explore and understand these challenges and know how we can overcome them.
Understanding Wires and Cable Manufacturing Challenges
Recognize the challenges in wire and cable manufacturing, from guaranteeing product longevity to managing supply chain interruptions, as well as the ways in which businesses tackle these problems.
#1. Limited Financial Resources
Wire and cable manufacturers have limited financial resources for purchasing highly efficient machines that use cutting-edge technologies and consume less power for manufacturing cables.
These machines need to have integrated CNC technology and quality control machines to ensure product quality in the manufacturing process.
The government provides subsidies on purchasing such heavy industrial machines for business owners, but the initial investment is too high, which creates an extra burden for the enterprise owners.
#2. Price Fluctuations of raw materials
The price of the raw material that is used in the wire manufacturing process is unstable and keeps fluctuating from time to time.
Sometimes the raw materials are cheap, while most of the time they are expensive. This reduces the profit margin considerably of the wires and cable manufacturers and affects their industrial output.
#3. High Cost of Manufacturing Machines
The cost of manufacturing cables and wires depends on many factors. In a wire manufacturing unit, many workers work as full-time paid employees; hence, they have regular fixed salaries.
Not only this, the raw materials used in the wire manufacturing companies need to be purchased and kept in storage, which adds to the extra cost. The machines need to be maintained from time to time to ensure proper working, so some money goes there as well.
In addition to this packaging of the wires and cables, Indian wire and cable manufacturers impose additional costs for moving cables from one location to another. This increases the overall cost of manufacturing wires and cables in India.
#4. Slow Technological Advancements
Research and development in cables and wires are too slow as compared to other technological fields.
Governments do not provide enough funding for new research and development in cable technologies, which slows down the rate of infrastructure development within a nation.
Hence, the government should take a keen interest in encouraging these wire and cable manufacturers in India to help sustain their businesses and promote sustainable business growth.
#5. Skilled Workforce Shortage
The workforce in the cable and wire manufacturing industries needs to be skilled; otherwise, there would be overutilization of the raw materials and too much waste in producing less cable.
To ensure that the manufacturing process is optimized, we need skilled laborers and working staff.
#6. Regulatory Hurdles and Policy Changes
Government policies and guidelines set for industries, factories, and manufacturing units are strict, obligatory, and require compliance.
Any deviation in following these rules and regulations are treated as criminal offense and huge penalties are levied to factory owners.
#7. Environmental Concerns
Factory waste poses environmental risks as well. International agencies are pretty strict about carbon emissions and focus on promoting an eco-friendly approach to the wire-making process and recycling waste.
Providing additional benefits to companies that comply with strict carbon emission laws can promote and encourage wire and cable manufacturers in India.
Conclusion
Wires and cable manufacturers in India face many challenges. First of all, they have limited financial resources and aid provided by the government. Most of the entrepreneurs do not get government aid due to a lack of knowledge or awareness of government initiatives.
Secondly, in India, we get low-rated employees, but they are not skilled. They do not know how to use optimal raw materials for production of wires and cables.
Thirdly, the cost of raw materials keeps fluctuating, which poses an additional burden to wire manufacturing company owners from time to time.
