• Cable industry development status
  

The size of nearly thousands of wire and cable enterprises in our country, 97% of whom are small and medium-sized enterprises, equipment utilization rate from 30% to 40% on average, far below the equipment utilization rate of more than 70% of the international level. 

More than 90% of capacity is concentrated in low-end products, and the industry average in research and development spends less than 1% of sales.

Aerospace, nuclear power, electronics, automotive wiring harness, high voltage cable net cable materials such as high-end products mainly rely on import.

To speed up the transformation and upgrading, speed up the merger and reorganization, to prevent overcapacity, always adhere to the quality first. 

Only in this way, to ensure that industry healthy and orderly development, and reasonably.

Transformation and upgrading are the keys to promoting the competitiveness of quality measures.

Obtained from the development of countries all over the world, at the time of slowing economic growth or even recession, the development of the industry is bound through mergers, acquisitions, transformation, upgrading, etc.

To constantly improve the industry concentration, the cable industry in China is no exception. 

In recent years, experts have also emphasized wire and cable industry transformation and upgrading. 

They emphasize that transformation and upgrading are in the lead of market demand for integration and upgrading.

How to do cable industry?

On the one hand, should establish the brand, abroad. Cable manufacturing enterprises should speed up the development of alternative imported products, occupation of the domestic high-end market, and speed up the export of high-end products, to secure a position in the international market."

In addition to the enterprises in the transformation and upgrading, and improving the quality of the competitiveness of their products, government departments also have. 

Such as wuwei county in Anhui province as one of the domestic wire and cable production bases, is the only special cable as the leading product industry base is always in ", "the word fluctuation kungfu, broadening the emerging industries need special products, product differentiation development road, make an industrial structure to high specializing purely do deep transformation.

Mergers and reorganization are a driving force in integrating quality basics way. China's wire and cable industry concentration degrees are low, the nationwide large industry enterprises are only 19. And their products accounted for only 11.7% of the country's market share. But at present the whole industry overcapacity, mergers, and reorganization are imperative.

The trend in the future development of the wire and cable industry in China? Wu Changshun thinks, director of the national electric wire electric cable quality supervision and inspection center, to a listed company, a large group of cable manufacturing enterprise merger integration related to wire and cable, size concentration, phasing out the lack of funds, lack of talents and the lack of market enterprise.

In order to guarantee the safety of electric power operation, the state shall implement a wire and cable products strict system of production license, the enterprise must obtain the national industrial products production license issued by the office of the wire and cable products production license to engage in production activities of wire and cable products in the territory of China, the new certification marks have been imposed on May 1, 2003. 

In terms of industrial policy, the national development and reform commission and the ministry of science and technology jointly compiled the "national important technical equipment development and major industrial technology development special planning".

The state council executive meeting to discuss principles through "the several opinions about accelerating the development of the equipment manufacturing industry under the state council, in order to promote the development of equipment manufacturing industry.

At the same time, in order to promote industrial structure adjustment, the national development and reform commission and the relevant departments formulate the catalog of some of the current industry stop low level repeated construction, in addition to the special cable and 500 kv ehv transmission lines, other new wire and cable manufacturing project is restricted, new production license shall be issued for no longer.

The technology level of the wire and cable industry is mainly embodied in two aspects: material and process. 

The proportion of raw materials in the cost of wire and cable products is more than 80%, thus saving material technology and use of low-cost technology is of great economic value. 

Process control level is a key factor affecting the quality of wire and cable products, the quality and technical indicators have a direct relationship with process control.

Wire and cable material is heavy industry, and light industry raw materials in China accounted for about 80% of the total cost of wire and cable (with 69% in America and Europe at 62%, Japan at 73%), according to the measurement, raw material prices rose 5%, about 4% lower profits.

Copper and aluminum are the most important raw materials, and wire and cable production are large-scale production manufacturers, have high bargaining power, and the purchase cost of raw materials restricts the wire and cable industry.

The wire and cable industry in the downstream vendors for grid construction companies and large electrical equipment manufacturers, has a relatively strong position, the bargaining power is strong, restricts the gross margin increase wire and cable industry.

The concentration is not high, in the whole wire and cable industry, and product technology content is less, the barriers to entry are relatively low.

The market competition is intense, state-owned enterprises have been gradually exit status, and foreign enterprises and private enterprises have become the most important force in the wire and cable industry.

With the continuous adjustment of the national economic structure and the guidance of relevant national industrial policy implementation, the wire and cable industry and optimization, and gradually formed a pyramid structure of the market.

Structure development imbalances, differences in different niche competition at the present stage our country outstanding problems of wire and cable industry product structure is more than ordinary cable products supply, high-end products in short supply, structural contradiction in products. 

In the field of low-voltage wire and cable in the market, focus on the domestic most of wire and cable companies, because of low technical content, production enterprise is numerous, severe overcapacity.

Industrial clusters and industrial production base of initial formation and distribution of regional market significantly, in east China, north China, such as industrial concentration area has formed several has certain characteristics of industry cluster and products production base.

Such as east China Yixing electricity cable of your community, wujiang, Jiangsu and Zhejiang fuyang communication cable your community radio frequency cable your community, Anhui, Zhejiang linan inaction.

Although China's wire and cable industry has experienced more than 20 years and has been in rapid development.

But is still not out of the strange circle of big but not strong, and the world's first-class enterprises are still a big gap compared. 

Existing industrial concentration is low, the enterprise quantity and small scale, economies of scale are far from enough, lack of capacity for independent innovation and product structural contradiction, and many other problems.