Exclusive interview with Cao Haixiao, head of domestic servo systems at STEP: Focusing on solutions to strengthen the brand image.
2021-09-22
Cao Haixiao, Head of Domestic Servo Systems, STEP Drive & Control Division
According to Cao Haixiao, head of domestic servo systems at the Shanghai STEP Motion Control Division, the first half of 2021—now halfway through—has been both predictable and somewhat surprising.
First, the rebound in the industry market, while expected to some extent, has shown an unexpectedly strong upward trend in orders. As a result, the strain on the market’s supply chain has become increasingly evident. Second, customer acceptance of domestic brands has also exceeded expectations. Previously, many industry customers had numerous restrictions on using domestically produced products; yet this year, these restrictions have significantly eased, and some customers have even proactively requested domestic alternatives. These industry users, on the one hand, hope to ensure the stability of their supply chains, and on the other hand, are mindful of the need to safeguard their own supply-chain security.
Moreover, influenced by the COVID-19 pandemic, the manufacturing sector has shown an even stronger demand for replacing human labor with machines and increasing the adoption of automated production lines. This, in turn, has spurred the rapid development of domestic robot manufacturing and intelligent manufacturing. Currently, many of STEP’s customers are stepping up their investments in intelligent manufacturing equipment, focusing on ways to further reduce labor costs, enhance production capacity, and improve product quality.
Regarding this year’s overall market shortage, Cao Haixiao believes that market panic is also a major contributing factor—much like the situation with mask-making machines at the onset of the pandemic in early 2020. At its core, this reflects deeper, long-term concerns about the future. The rebound in orders in 2021 has highlighted numerous underlying issues—for instance, in the supply chain, it has exposed problems related to industrial collaboration. The entire industry chain is operating at an extremely busy pace, yet not every company may be able to turn a profit. Given that capacity expansion in the chip industry has been relatively slow, we can expect the “chip shortage” to ease somewhat starting from the second half of this year. Faced with the current widespread shortages and insufficient component supplies, As a company with a highly comprehensive product lineup, Shanghai STEP has demonstrated the advantages of group-wide collaborative operations. By adopting a centralized and unified procurement approach through headquarters, each business segment can be adequately taken care of.
For domestic servo brands, whether measured by market share or customer recognition, now is undoubtedly the best period ever. In recent years, domestic servo brands have made remarkable progress, with their market share rising rapidly. As a local enterprise with exceptionally strong independent R&D capabilities, STEP has always been committed to becoming one of the industry’s leading players; therefore, More importantly, we are able to deliver differentiated and more valuable technology solutions.
Faced with the enormous market demand in China at this stage, relying solely on standardized products to dominate the entire market is no longer appropriate. Cao Haixiao pointed out that the closer a company is to its customers, the greater its competitive edge. Domestic brands can better align themselves with market needs and more effectively organize bulk deliveries—this is precisely where domestic brands have their greatest advantage. When developing customized solutions, STEP... We will carefully study the various “pain points” they encounter in their actual work. We will carry out in-depth development to provide customers across various industries with motion control technology solutions that meet their specific application needs, thereby enhancing customer loyalty and brand affinity, and continuously strengthening STEP’s strong brand image already established in different niche markets. (Source: Exclusive Interview by China Drive Network)
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