The wire and cable industry is a sub-sector of the machinery industry and an important part of the equipment manufacturing industry. It is called the "nervous" and "blood vessels" of urban and rural areas. In recent years, especially during the “Eleventh Five-Year Plan†period, the wire and cable industry in China has developed rapidly. By the end of the “Eleventh Five-Year Plan†period, the output value of the national wire and cable industry has reached 500 billion yuan, making it the second largest industry after the automotive industry. , ranking first in the world. The wire and cable industry in Anhui has also developed rapidly. By the end of 2010, the output value of the province's wire and cable industry has exceeded 40 billion yuan.
Survival is difficult
At present, China's wire and cable industry is still a trend of continuous development, but there are also seven major problems, which seriously restrict the healthy and sustainable development of the industry.
One is the surplus of middle and low-end products and the lack of high-end products. At present, there are about 10,000 enterprises in China's wire and cable industry, but most of them are small in scale and have low product levels. There are not many companies that can truly win the bid in national key projects. Some special and major areas of wire and cable are in short supply, and only rely on imports when necessary.
The second is the repeated production, redundant construction, and excess production capacity. It should be said that wires and cables are relatively easy to produce, and the threshold for market access is also low. In recent years, the transformation of urban and rural power grids has caused some companies to “grab the opportunity†and proceeded in one move; even the power sector has been competing to build factories. Over the past few years, the pace of national capital construction has been accelerated, and the real estate industry has continued to heat up. Many companies have come to the forefront, seeing what others produce, what they also produce, causing product duplication and overcapacity.
Third, local protectionism and monopoly are serious, and the market lacks norms. Due to the overcapacity of wire and cable and fierce market competition, some local governments engage in local protection and hardlines require the use of local products. Some power departments use only the products produced by enterprises in this system or the products of related households, and other enterprises are difficult to access. Some regulatory agencies also only investigate foreign products and do not check local or system products, resulting in unfair competition. At present, in the low-end wire and cable market with relatively low technology added value, the situation of price reduction and marketing is quite common. Some “workshop companies†that do not have the necessary means such as production capacity, quality control, and testing can be caught in the industry and become the source of counterfeiting, shoddy work, cutting corners, shoddy work, and shoddy products, and by lowering sales prices. Such means disrupt the order of market competition and aggravate the disorderly competition in the industry.
Fourth, raw material prices have continued to climb. Due to fierce market competition, it is difficult for cable products to raise prices, and business survival is difficult to sustain. The main raw materials for the wire and cable industry are copper and aluminum. In the past few years, the prices of copper and aluminum have continued to rise despite fluctuations. With the increase in energy, transport costs, and employing wages, the cost of wire and cable production has been rising. In order to maintain profitability and maintain production, some enterprises have to cut corners, lower product standards, and even produce fake and shoddy products.
Fifth, less investment in R&D and insufficient innovation capability. Some cable companies are eager for quick success and are busy developing production and increasing production. They are not willing to invest capital and intellectually develop new products, especially high-precision products; they also do not attach importance to improving product quality and creating brand names. To make local cable companies lack independent intellectual property rights, key technologies are subject to people, and the development of high-end technologies and high-end products is slow. According to statistics, only 30% of the domestic cable brands have reached the level accepted by the international market and can compete. The lack of professional personnel in the enterprise, graduates of related institutions are reluctant to enter the work of small and medium-sized cable companies, most of the employees of private enterprises have not carried out relevant professional training, and the technical innovation talents are seriously deficient. Most enterprises lack the investment of special funds for product development and innovation. All of these have led to the lack of independent technological innovation in the current domestic cable manufacturers and the conspicuous contradictions in the product structure.
Sixth, low-cost bids affect the sound development of the cable industry. Downstream companies occupy large amounts of funds from upstream companies. In the tendering and bidding activities, the downstream customers use low-price bids, and the cable companies dumped for survival at low prices, ordered the national standard goods, and provided non-standard products.
The downstream customers in the industry are strong and large customers, occupying a large amount of funds from cable companies and affecting the normal operation of the entire industry.
Seventh, there are numerous cable entry qualifications and cable companies are overwhelmed. Wire and cable are the products that must be used in various industries. However, various industries have different requirements for cable performance or have different priorities. Therefore, various restrictions are imposed on the cable product access network. Those who are not qualified for network access must not be allowed to use the network, resulting in annual cable manufacturing enterprises. It takes a lot of manpower, material resources, and financial resources to deal with these numerous accreditations. For example, the most common cable requires a production license, the low voltage wire must have a 3C compulsory certification, the mining cable must have a safety certification for a coal mine system, the indoor communication cable must have a network access license for the telecommunications bureau, and the television cable must have a broadcast television department. Network access licenses, computer network LAN cable must have a network access license, fire-retardant fire-resistant cables must have the fire department's record approval certificate and so on. What's more, the same product needs to have several user department licenses at the same time. In order to obtain a variety of network access qualifications, the company's marketing expenses have increased significantly.
Change the mode of development without delay
The wire and cable industry is an important component of the equipment manufacturing industry. The national economic construction cannot be separated from the wire and cable, and the “12th Five-Year Plan†period will require vigorous development. At present, the competition in the wire and cable industry has become increasingly fierce, and multinational companies have “eaten†a large share of the Chinese market. China's wire and cable industry should be in line with international standards. To enhance market competitiveness, it is imperative to change the mode of development.
First, we must adjust the product structure and vigorously develop high-end products. At present, China's middle and low-end cable products are in excess, but high-end products are still insufficiently supplied. Local cable companies must vigorously develop high-end products, mainly special cables, high-voltage cables, ultra-high voltage cables, and superconducting cables; special fields such as submarine cables and mining cables must be developed. To develop these cables, it is necessary to increase R&D investment and increase R&D strength. Enterprises must be willing to invest in this area. The lack of technical strength of enterprises can enable the combination of production, education, and research, with the help of universities and research institutes. We must actively apply for patents, protect intellectual property rights, and form our own products and technological advantages. To see that having such advantages, "fist" products, is much stronger than the production of ordinary conventional products.
Second, adhere to technological innovation and improve product quality. With the progress of society, the production of products is moving toward energy conservation and environmental protection. The cable industry is no exception. To develop energy-saving and environmentally friendly cables, we must improve the process and improve the manufacturing methods. We must vigorously adopt new processes, new technologies, and new materials. An enterprise in Anhui Province adopts aluminum alloy cables, which are characterized by good quality, high reliability, energy saving, and cost reduction. It has been certified by the U.S. authorities and exported to foreign countries. The economic benefits are considerable and it is worth advocating.
Third, implement brand strategy and improve core competitiveness. Wire and cable is a product with a wide range of products. Manufacturers must strive for a place in the market. They must strive to improve product quality and improve product reliability. It is necessary to actively create brand names, create well-known trademarks, and increase product awareness. We must actively adopt international standards and improve the quality and level of products. Only by creating such a brand can the product be favored by users. At present, there are not many companies with well-known brands in the cable industry in China. Enterprises should regard creating brand names as their goal of struggle, formulate plans, implement measures, and strive to achieve them.
Fourth, promote corporate restructuring and develop large enterprise groups. At present, the number of wire and cable manufacturers in China is large and small, and it is difficult to develop high-precision products by themselves. Practice has proved that large enterprise groups are an advanced form of organization and play an important role in optimizing resource allocation, implementing structural adjustment, and organizing modern production. In the wire and cable industry, the formation of large companies, large groups, external to help improve international competitiveness and protect national brands; internal can promote the establishment of a good market order, to overcome the disorderly competition. We must actively promote the reorganization of enterprises, unite related cable manufacturers, implement a rational division of labor, use funds centrally, and sell in a unified manner. This is conducive to product development, is conducive to professional production, is conducive to open up and occupy the market. In order to promote corporate restructuring and development of large enterprise groups, local governments and competent authorities should pay attention to it and do a good job in organizing and coordinating work. It is necessary to break the boundaries between regions, departments, and industries, and take advantage of advantageous enterprises and superior products as the leader to form enterprise groups and related companies. Drive up.
Survival is difficult
At present, China's wire and cable industry is still a trend of continuous development, but there are also seven major problems, which seriously restrict the healthy and sustainable development of the industry.
One is the surplus of middle and low-end products and the lack of high-end products. At present, there are about 10,000 enterprises in China's wire and cable industry, but most of them are small in scale and have low product levels. There are not many companies that can truly win the bid in national key projects. Some special and major areas of wire and cable are in short supply, and only rely on imports when necessary.
The second is the repeated production, redundant construction, and excess production capacity. It should be said that wires and cables are relatively easy to produce, and the threshold for market access is also low. In recent years, the transformation of urban and rural power grids has caused some companies to “grab the opportunity†and proceeded in one move; even the power sector has been competing to build factories. Over the past few years, the pace of national capital construction has been accelerated, and the real estate industry has continued to heat up. Many companies have come to the forefront, seeing what others produce, what they also produce, causing product duplication and overcapacity.
Third, local protectionism and monopoly are serious, and the market lacks norms. Due to the overcapacity of wire and cable and fierce market competition, some local governments engage in local protection and hardlines require the use of local products. Some power departments use only the products produced by enterprises in this system or the products of related households, and other enterprises are difficult to access. Some regulatory agencies also only investigate foreign products and do not check local or system products, resulting in unfair competition. At present, in the low-end wire and cable market with relatively low technology added value, the situation of price reduction and marketing is quite common. Some “workshop companies†that do not have the necessary means such as production capacity, quality control, and testing can be caught in the industry and become the source of counterfeiting, shoddy work, cutting corners, shoddy work, and shoddy products, and by lowering sales prices. Such means disrupt the order of market competition and aggravate the disorderly competition in the industry.
Fourth, raw material prices have continued to climb. Due to fierce market competition, it is difficult for cable products to raise prices, and business survival is difficult to sustain. The main raw materials for the wire and cable industry are copper and aluminum. In the past few years, the prices of copper and aluminum have continued to rise despite fluctuations. With the increase in energy, transport costs, and employing wages, the cost of wire and cable production has been rising. In order to maintain profitability and maintain production, some enterprises have to cut corners, lower product standards, and even produce fake and shoddy products.
Fifth, less investment in R&D and insufficient innovation capability. Some cable companies are eager for quick success and are busy developing production and increasing production. They are not willing to invest capital and intellectually develop new products, especially high-precision products; they also do not attach importance to improving product quality and creating brand names. To make local cable companies lack independent intellectual property rights, key technologies are subject to people, and the development of high-end technologies and high-end products is slow. According to statistics, only 30% of the domestic cable brands have reached the level accepted by the international market and can compete. The lack of professional personnel in the enterprise, graduates of related institutions are reluctant to enter the work of small and medium-sized cable companies, most of the employees of private enterprises have not carried out relevant professional training, and the technical innovation talents are seriously deficient. Most enterprises lack the investment of special funds for product development and innovation. All of these have led to the lack of independent technological innovation in the current domestic cable manufacturers and the conspicuous contradictions in the product structure.
Sixth, low-cost bids affect the sound development of the cable industry. Downstream companies occupy large amounts of funds from upstream companies. In the tendering and bidding activities, the downstream customers use low-price bids, and the cable companies dumped for survival at low prices, ordered the national standard goods, and provided non-standard products.
The downstream customers in the industry are strong and large customers, occupying a large amount of funds from cable companies and affecting the normal operation of the entire industry.
Seventh, there are numerous cable entry qualifications and cable companies are overwhelmed. Wire and cable are the products that must be used in various industries. However, various industries have different requirements for cable performance or have different priorities. Therefore, various restrictions are imposed on the cable product access network. Those who are not qualified for network access must not be allowed to use the network, resulting in annual cable manufacturing enterprises. It takes a lot of manpower, material resources, and financial resources to deal with these numerous accreditations. For example, the most common cable requires a production license, the low voltage wire must have a 3C compulsory certification, the mining cable must have a safety certification for a coal mine system, the indoor communication cable must have a network access license for the telecommunications bureau, and the television cable must have a broadcast television department. Network access licenses, computer network LAN cable must have a network access license, fire-retardant fire-resistant cables must have the fire department's record approval certificate and so on. What's more, the same product needs to have several user department licenses at the same time. In order to obtain a variety of network access qualifications, the company's marketing expenses have increased significantly.
Change the mode of development without delay
The wire and cable industry is an important component of the equipment manufacturing industry. The national economic construction cannot be separated from the wire and cable, and the “12th Five-Year Plan†period will require vigorous development. At present, the competition in the wire and cable industry has become increasingly fierce, and multinational companies have “eaten†a large share of the Chinese market. China's wire and cable industry should be in line with international standards. To enhance market competitiveness, it is imperative to change the mode of development.
First, we must adjust the product structure and vigorously develop high-end products. At present, China's middle and low-end cable products are in excess, but high-end products are still insufficiently supplied. Local cable companies must vigorously develop high-end products, mainly special cables, high-voltage cables, ultra-high voltage cables, and superconducting cables; special fields such as submarine cables and mining cables must be developed. To develop these cables, it is necessary to increase R&D investment and increase R&D strength. Enterprises must be willing to invest in this area. The lack of technical strength of enterprises can enable the combination of production, education, and research, with the help of universities and research institutes. We must actively apply for patents, protect intellectual property rights, and form our own products and technological advantages. To see that having such advantages, "fist" products, is much stronger than the production of ordinary conventional products.
Second, adhere to technological innovation and improve product quality. With the progress of society, the production of products is moving toward energy conservation and environmental protection. The cable industry is no exception. To develop energy-saving and environmentally friendly cables, we must improve the process and improve the manufacturing methods. We must vigorously adopt new processes, new technologies, and new materials. An enterprise in Anhui Province adopts aluminum alloy cables, which are characterized by good quality, high reliability, energy saving, and cost reduction. It has been certified by the U.S. authorities and exported to foreign countries. The economic benefits are considerable and it is worth advocating.
Third, implement brand strategy and improve core competitiveness. Wire and cable is a product with a wide range of products. Manufacturers must strive for a place in the market. They must strive to improve product quality and improve product reliability. It is necessary to actively create brand names, create well-known trademarks, and increase product awareness. We must actively adopt international standards and improve the quality and level of products. Only by creating such a brand can the product be favored by users. At present, there are not many companies with well-known brands in the cable industry in China. Enterprises should regard creating brand names as their goal of struggle, formulate plans, implement measures, and strive to achieve them.
Fourth, promote corporate restructuring and develop large enterprise groups. At present, the number of wire and cable manufacturers in China is large and small, and it is difficult to develop high-precision products by themselves. Practice has proved that large enterprise groups are an advanced form of organization and play an important role in optimizing resource allocation, implementing structural adjustment, and organizing modern production. In the wire and cable industry, the formation of large companies, large groups, external to help improve international competitiveness and protect national brands; internal can promote the establishment of a good market order, to overcome the disorderly competition. We must actively promote the reorganization of enterprises, unite related cable manufacturers, implement a rational division of labor, use funds centrally, and sell in a unified manner. This is conducive to product development, is conducive to professional production, is conducive to open up and occupy the market. In order to promote corporate restructuring and development of large enterprise groups, local governments and competent authorities should pay attention to it and do a good job in organizing and coordinating work. It is necessary to break the boundaries between regions, departments, and industries, and take advantage of advantageous enterprises and superior products as the leader to form enterprise groups and related companies. Drive up.
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