The wire and cable industry is gradually clear

The wire and cable industry is gradually clear

In the first half of last year, China's wire and cable companies experienced a period of low ebbing. Since the second half of the year, operations have been gradually stable. According to the survey, from the beginning of last October, the average operating rate of domestic wire and cable companies was 84.26%, which was higher than the year-earlier period, and the value was already higher than the average operating rate of 74.5% for the whole year of 2012, and the station was standing for 7 months in a row. More than 80%. This fully proves that the wire and cable industry in the domestic market continues to pick up, and it has also reaffirmed the confidence of the local cable industry.

However, with the continuous development of the domestic wire and cable industry, the obstacles on some development roads are becoming more and more clear. First, the domestic cable industry is demonstrating the increasingly clear features of the industry hierarchy. It mainly includes two aspects. One is the world's wire and cable giant with advanced technology, capital, and management advantages. It adopts a joint venture or wholly-owned enterprise in China and occupies an industrial market with high technical barriers and a high profit margin, distributed in electricity, The areas of high-end special cables, such as telecommunications and electrical equipment, which require high technical standards, have exacerbated the division of industry levels and at the same time have also aggravated the industry’s specialization.

Secondly, in the fierce competition among the private, state-owned, and foreign-funded industries in China's wire and cable industry, the industry structure has gradually become clear. For example, companies in the absolute leading position in the industry include several well-known multinational companies and leading companies in the domestic wire and cable industry. They can be classified as the first-tier companies in the industry, such as Nexans, Prysmian, and general-purpose cables, and foreign companies. Such as domestic enterprises; while the second-tier enterprises are leading companies in the wire and cable industry in China, but have a certain gap compared with leading enterprises, and enterprises with certain monopolistic advantages in certain product areas, such as Baosheng, Guangdong Nanyang, Zhongli and other domestic companies; third-tier enterprises are enterprises with certain industrial characteristics or competitiveness, such as Qixing, Sichuan Star, Dongguan Huaxin and other domestic companies; finally, the fourth level is the lack of features, competition in the market It is difficult to have competitiveness and even face cable production companies that have eliminated or closed down their risks.

In the face of many strong foreign rivals, local Chinese companies still feel pressured. For example, the development of China's domestic cable industry is still extensive. As we all know, the rapid development of the wire and cable industry still depends on a large number of resource inputs, and the growth rate of industry assets is not much different from the increase in industry output value. According to statistics, the growth rate of industry assets in 2012 reached 12.20%, while the growth rate of industry industrial output value in the same period was 12.23%. In the past two years, the growth of the industry was largely due to the increase in investment in industrial assets. However, compared with the growth in industrial assets in 2011 of 25.17%, the industrial output value of the industry increased by 18.0%, and the industry development has changed.

In addition, extensive development has led to overcapacity of low-end products in the local cable industry and insufficient development of high-end cables. According to statistics, about 90% of China's wire and cable companies are mainly engaged in the production of medium- and low-voltage wire and cable products. Their production equipment processes are simple, while high-end products such as nuclear power special cables, ship-to-ship cables, and robot cables mainly rely on imports.

At present, China's wire and cable industry has a fierce market competition. Most domestic small and medium-sized enterprises use price competition. Wire and cable enterprises lack sufficient development stamina and their independent innovation capability is not strong. In the mid- and low-end wire and cable markets where technology added value is relatively low, price reduction and sales are quite common. More than 40% of companies in the industry have experienced unfavorable competitions such as winning bids at lower cost prices and maliciously lowering their prices. At the same time, the cost of wire and cable raw materials has risen, and most products made in China are low-end wire and cable products. As a result, many wire and cable manufacturers are in a state of low profit or even loss.

When it comes to high-end cable product research and development, due to lack of industry concentration, lack of funds for SMEs and weak operating capacity of enterprises, leading wire and cable companies to maximize profits, companies do not put the technological innovation and product quality improvement In the first place. The situation resulting from this situation is that some cable manufacturers are not technologically innovative and strict in their quality; in addition, for some small and medium-sized cable manufacturers, they are conscious and incompetent.

Of course, the predicament faced by the local cable industry is by no means confined to the foregoing. Compared with the continuous injection of foreign companies into the Chinese market, the threat from the outside world is even more pressing. In recent years, the capital structure of China's wire and cable industry has become increasingly diversified. The status of state-controlled enterprises in the industry has weakened, and the proportion of private and foreign investment has increased significantly. In the field of low-voltage wire and cable production, domestic private enterprises have become the dominant force in the industry. In the wire and cable industry, privately-owned companies accounted for 69% of the output value, 70.6% of enterprises, 62.4% of assets, 51.2% of employees, and 66.2% of total profits and taxes. However, with the advantages of technology, capital, and management, foreign large-scale cable companies have a great advantage in the competition of some subdivided industries, especially high-end special cables.

In particular, whether the Party's "eighteenth session" or the successful convocation of the second session of the National People's Congress of the 12th National People's Congress has sent positive signals to all walks of life, it means that the full construction of China's construction will also mean that high-tech products will be developed. Great picture. As a result, the wire and cable industry in China is a mixed blessing. On the one hand, large construction will promote the development of the cable industry. On the other hand, it attracts more foreign-funded enterprises to inject into China and establish wholly-owned or joint-venture companies for the local cable industry. Market share for a new round of snatch.

As a result, the Chinese cable industry will go from here, let us wait and see. It is hoped that the domestic leading enterprises will be able to take the lead and lead China's cable industry out of its predicament, from a big cable country to a cable power.

Philippines Extension Sockets

Single Gang Trailing Socket,Philippines Charger Socket,Philippines Sockets Plugs,Power Outlet Converter Philippines

Heikki Technology Co., Ltd. , https://www.heikkipower.com

This entry was posted in on