Industry statistics show that in the next few years, China's wire and cable industry development speed will be higher than the national economic development rate is expected to reach more than 10%. In particular, the average annual growth of power wires and cables can be up to 15%. According to the information of comprehensive judgment, that for the next two years, the main distribution equipment industry sales revenue forecast for the next few years, wire and cable sales revenue of 353 billion yuan in 2008, 2009 was 398 billion yuan, 413 billion 600 million yuan in 2010. This is a great opportunity for cable companies, however, in the face of fierce competition in domestic and foreign cable manufacturing enterprises, for the hope of 2008, the five deputy general manager of Jiangsu Cable Co. Zhang Xinhua said the wire wire industry cautious optimism. Optimistic: wire and cable industry continued to develop rapidly in recent years, the power grid construction to speed up, UHV project have been put into construction, to the wire and cable industry has created a huge market. According to statistics, the industry average annual growth of more than 15% in the past 15 years. At present, China has become the second largest industry in the automotive industry. China plays an important role in the world. Wire and cable output value has exceeded the United States to become the world's largest wire and cable producer. From the pattern of the world, Europe, Japan and the United States had already carried out strategic mergers and acquisitions. Product series of division of labor, the target market re positioning, the formation of large-scale or specialized production. The characteristics of the industrial concentration is higher, the top ten enterprises accounted for the total sales revenue of the country or region of the market more than 2/3.
A clear trend is that the world's focus on wire and cable production continues to shift to Asia, led to the rapid development of China, Vietnam, Philippines and the Middle East region. From the overall perspective, the industry through a large number of technology introduction, digestion and absorption, as well as independent research and development, has formed a huge production capacity. With the supporting cable material, cable equipment manufacturing industry has also initially formed a complete set of supporting system. Large enterprises have obvious advantages in terms of market competitiveness, profitability is strong. Medium and small enterprises assets operation ability is better. At present, the market operation mechanism of the industry is obviously enhanced, the rapid development of private economy, has become the basic force of economic growth in the industry. Especially in the developed areas of the economy, the advantages of wire and cable manufacturing industry is obvious, and the regional difference is further expanded. In assets, state-owned economy component accounted for only 15%, foreign-funded enterprises accounted for nearly 25%, while the composition of the private economy is more than 60%. In the wire and cable industry sales revenue of the top ten enterprises, the vast majority of private enterprises. East China has become the most important manufacturing area of wire and cable industry, accounting for 50% of the country's assets and production value of 60% of sales, and won 70% of the profits of the industry. Caution: the industry's outstanding problems have not fundamentally resolved in the rapid development of the industry, the industry has become a major problem to become the fetters.
First, with the changes in the external environment and the impact of market competition, the world's wire and cable industry has formed a pattern of several giant monopoly;
The two is the main raw material prices rose sharply, cable companies strapped lead to slow capital turnover. Especially foreign special cable products to enter the Chinese market, the competition is more fierce competition, some enterprises have been faced with the crisis of survival.
It is understood that, at present, China's small and medium-sized wire and cable companies have reached more than 7 thousand. These enterprises due to the lack of R & D capabilities, most companies in the low-end products to do the article in the low-end products, high-end products in short supply. At present, there are about ten thousand enterprises in the cable industry, most of the enterprises are small in scale, the phenomenon of repeated investment in the industry is outstanding, and the production capacity is surplus. Such as urban and rural power grids, many enterprises set production overhead wires, power cables; pay attention to the development of high technology, and the production of high-voltage cable and optical fiber cable into many enterprises; in recent years, many enterprises investing in the production of automotive wires, especially foreign capital into the domestic high-voltage cables, cable and special cable market, make the competition more fierce. Industry brand influence is weak, resulting in a disorderly competition in the wire and cable industry. Truly in the country's major projects have the ability to win only more than and 50. Product price has become a magic weapon for many small and medium enterprises. Because the wire and cable is a typical material heavy, light industry, the price of raw materials accounted for the total cost of 70%~80%. Therefore, the quality of raw materials to a large extent affect the quality of wire and cable products. With the rising prices of copper and aluminum, coupled with rising energy and transportation costs, to further increase the cost of enterprises, the industry's gross profit margin fell. Cause some companies cut corners, or for different customer production of so-called "high standard" products, the strict mandatory national standards to control production according to the so-called "tailored" to ensure the safety of the enterprise standard production. Small business has been able to provide ultra low price products, is nothing more than the original material to do the article, the quality of the product can be imagined. Increased quality risk, unfair competition.
Market standardization is not enough, local protection is still serious. Wire and cable as one of the basic industries in our country, whether in the degree of market regulation or by the degree of government attention, have not reached a certain height. From a national perspective, the current unified market basically formed, but there is no break around the invisible threshold, local protectionism is still serious. Some local governments require the use of local products, some regulators only check the local enterprises, not check the local enterprises. These acts named according to the law, it is closed protection, resulting in products can not be in accordance with the laws of the market circulation, hindering the standardization of the development of the market standardization. Price discourse power is weak, the market order disorder. Cable industry customers are mostly national large-scale projects or state monopoly industries, such as power, communications, railways, etc.. Cable companies can not be fair dialogue with a strong buyer's market. Some enterprises not only take to advance, but also to pay zhibaojin to customers. The current bidding mechanism is very confusing, the vast majority of the use of the "minimum price" standard, resulting in product quality can not be guaranteed. Basic research and application research is not enough, the lack of core competitiveness. Although the use of doctrine to make wire and cable companies have a number of good equipment, but did not really form the core competitiveness. With the enterprise as the main technological innovation and system construction lags behind the pace of economic development, the field of wire and cable the lack of independent intellectual property rights, the key technology is often restricted to the heteronomy, the development of high-end technology, high-end products. According to statistics, at present, China has only 30% of the cable varieties to reach the international market can accept and participate in the level of competition. Outlook: the development prospects of the cable industry continue to increase
Cable is an important industry in the national economic construction, after 50 years of construction, especially the rapid development of the 20 years of reform and opening up, now the products satisfy the rate has reached more than 95%, to meet the domestic market rate has reached more than 90%. Experts predict that the national attention to infrastructure construction, the development of the information superhighway, communication utilities such as electric equipment upgrading and energy saving requirements for take-off, etc., is bound to the wire and cable types and levels continue to put forward new demands. Deputy general manager of Jiangsu five party Cable Co. Ltd. Zhang Xinhua pointed out that at present, only 30% of the cable varieties in China reached the international market to accept and participate in the competition level, there are 70% varieties of cable urgent need to improve the product level and grade, a period in the future demand will not have too big growth, but the variety and level of demand will be a period of vigorous development. To this end, Jiangsu five party Cable Co., Ltd. actively adjust the train of thought, the establishment of technological innovation strategy, optimize product structure, and constantly improve the competitiveness of enterprises.
First, accelerate the integration of resources, through the macro policy guidance, and actively promote the reform of the industry and enterprise structure, and promote the optimization of industrial organization structure. Actively build large enterprise groups and promote the professional production of small and medium enterprises, the formation of the scale of the industry and professional production system. Secondly, to play the role of association organizations in the development of the industry, to build a bridge between the enterprise and the government. At the same time to better play the role of maintaining the overall interests of the industry and regulate the market order of the industry. In the continuous increase in product quality supervision and inspection efforts on the basis of the formation of a unified, standardized, transparent and open market in the country. Third, actively promote the brand strategy, through the integration of superior resources, to improve the overall level of the industry. To rely on science and technology, enterprises as the main body, enhance the ability of independent research and development, vigorously develop new products and promote the upgrading of products. Advocate industry backbone enterprises to cooperate and carry out research work and product reliability research, so that the level of product design, manufacture and operation is gradually increased. Fourth, enterprises should increase the intensity of technological transformation, from the basic production processes, and actively use high-quality and efficient process equipment, eliminate high energy consumption and pollution of the environment of obsolete equipment. Pay attention to the product technology, production technology, and enhance the ability of sustainable development, enhance the ability of online automatic detection. Fifth, vigorously promote the application of environmentally friendly production technology, and actively develop environmentally friendly wire and cable products. At the same time, strive to improve the management level of enterprises, and actively promote the institutionalization of management, fine management and market operation, and comprehensively improve the overall operational efficiency of enterprises, and promote the industry to achieve the transformation of industrial growth mode.
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