China's wire and cable industry or welcome new opportunities

With the continuous expansion of China's power industry, data communications, and urban rail transit industries, the demand for wire and cable will also grow rapidly, driving the development of China's wire and cable industry.

At present, the scale of the global wire and cable market has exceeded 100 billion euros. In the global wire and cable industry, Asia's market size accounts for 37%, European market is close to 30%, the American market accounts for 24%, and other markets account for 9%. Among them, although China's wire and cable industry plays an irreplaceable role in the global wire and cable industry, and as early as 2011, the output value of China's wire and cable companies has surpassed that of the United States, ranking first in the world. However, from an objective point of view, compared with the wire and cable industry in Europe and the United States, China is still in a big but not strong position, and there is still a big gap with foreign well-known wire and cable brands.

Divided by the country, Prysmian Corporation of Italy ranks first in the world with an annual turnover of more than 5 billion Euros, while Nexen of France ranks second behind the turnover of Prysmian. . U.S. General Cable Corporation ranked third with annual turnover of more than 3.4 billion euros. Japan’s Sumitomo Electric and Furukawa Electric’s cable business turnover also exceeded 2.5 billion euros, which is far from the sales of Chinese cable companies.

In 2011, the output value of China's wire and cable industry was 1.1438 billion yuan, for the first time exceeded trillion yuan, an increase of up to 28.3%, and a total profit of 68 billion yuan. After entering 2012, in July, the national wire and cable industry sold 671.5 billion yuan in output value, total profit was 28.1 billion yuan, and the average profit was only 4.11%. The industry profit was already lower than the average profit of China's electrician industry by 4.88%, which was significantly higher than in 2011. Decline. Even so, this profit is built on the basis of counterfeiting, shoddy goods, and short-selling goods. This phenomenon is even more revealing that China's wire and cable industry is fraught with crisis. Although a broad market was opened in 2013 with the advancement of industrialization, the internal and internal development of the industry was not optimistic.

The reason for this situation is that China’s wire and cable industry’s manufacturing scale has increased at an alarming rate. Technology and product upgrades are far behind the pace of the market. This has caused serious duplication in the industry and overcapacity. , insufficient effective supply, prominent structural contradictions, low input and output, and weak technological innovation. The wire and cable industry is a system industry, from the smelting of industrial raw materials, through product design, trial production to the batch production, testing, use and integration of finished products, and even to the recovery and recycling of products, is an extremely complex process. In the good times of the times, there has been blind expansion and extensive development. Although economic benefits can be obtained in a short period of time, it is difficult to form a scale and form a brand.

Affected by the economic situation at home and abroad, China’s industry is currently facing four major problems: the developed countries are returning to high-end manufacturing industries, which has increased the competitive pressure on our products; neighboring developing countries have lower labor costs and production factor costs, and China’s Competition for low-end manufacturing; China's labor costs and other factors of production costs continue to rise, corporate profits have been compressed; China's core technology controlled by people, lack of scientific and technological innovation capabilities.

China's wire and cable industry is closely related to the entire Chinese industry. It is also facing some problems in its development. On the one hand, it is constantly increasing its product requirements and is gradually shifting from the low end to the high end; on the other hand, the market environment is more complex and satisfied. Domestic demand changes to participate in international competition. Therefore, through the industrial transformation and upgrading, to improve the quality as the core link, and extended to the brand, market and technological innovation, has become the current key to enhance industrial competitiveness and realize the industry from a big change.

At present, China's wire and cable industry, with the exception of several large companies, seems to be aiming at short-sighted earning. It is precisely because China's wire and cable companies mostly pursue short-term economic benefits, thus causing China's wire and cable industry to face a severe test today. The lack of technological innovation and product innovation, lack of market innovation, and lack of management systems all hinder the development of China's cable companies. This is also the fundamental reason why China's wire and cable industry is unable to form its own international brand. With the continuous development of science and technology and the advancement of industrialization, the requirements for wire and cable products are getting higher and higher. If cable companies cannot produce wire and cable products that meet the requirements and meet the standards, they will certainly be eliminated.

It can be seen that technology and technological innovation are fundamental to the inventory and development of wire and cable companies. Only by possessing strong technological innovation and product innovation capabilities and having independent intellectual property rights can the company's core competitiveness be further enhanced. The technical level of China's wire and cable industry is generally low, mainly in the production of low efficiency, low degree of automation, high energy consumption, on-line detection is incomplete, poor reliability, serious excess, poor quality, industry development and safety is threatened, The lack of after-sales service, especially the industry technology innovation system has not yet formed, and the independent design and development capability is poor. It basically stays at the low level of surveying and mapping and imitation, and has not fully grasped the design technology of wire and cable products, and has not formed wire and cable products. The combined development mechanism of materials, processes, and equipment makes it difficult to meet industry development needs.

It is reported that at present, China's wire and cable industry, the average investment in R & D funds less than 1% of sales, domestic cable companies more than 90% of production capacity concentrated in low-end products. With the increasing demand for technological innovation, technological innovation, and material innovation, some domestic wire and cable companies have also increased investment in innovation. In August 2012, Jiaxing Duojiao Wire & Cable Co., Ltd.'s “Enamelized green fire-resistant cable project” won the National Innovation Fund project and received a 700,000 yuan special fund for science and technology, which is also the only national innovation fund project approved in this field in China. project.

In a sense, the R&D of the “Enamelized green fire-resistant cable project” is not the birth of a simple new material, but set a benchmark in the industry.

In 2013, China's wire and cable companies must implement the enhancement of independent innovation capabilities as a corporate development strategy in all aspects of their production and operations, and strengthen technological innovation to acquire more independent intellectual property rights in key areas, at the forefront of science and strategy. The technology field has a place.

In addition, China's East China and South China regions are China's priority areas for development, and are the first areas for foreign companies to enter, with the country's most advanced resources and technologies. Therefore, it can be said that China's wire and cable industry is a technology-oriented type. China's wire and cable industry should make breakthroughs in East China and South China, take the lead in realizing innovations in science, technology, and materials, and lead China's wire and cable companies toward the goal of “bigger and stronger”.

In the same way, the government should also take this as its goal, increase the intensity of vocational education, increase subsidies for wire and cable SME guarantees, and introduce policies for the introduction of high-end talent, market development, R&D centers, and procurement of local products to assist China. The sustainable development of wire and cable industry.