Talking about the current situation of wire and cable industry

Wire and cable are widely used in many industries such as energy transportation, information and communications, construction railways, urban rail vehicles, aviation metallurgy, and petrochemicals. China is a big cable country, but it is not a strong country. At present, the wire and cable industry has many and small scales. According to statistics, there are more than 7,000 cable manufacturing enterprises in China, and there are numerous small-scale enterprises. The production concentration of the wire and cable industry is low, and the market share of the largest companies is only 1% to 2.5%.

From the perspective of the development level of the entire industry, the cable industry has low concentration, decentralized technology, and low technological content. On the contrary, the wire and cable industry in the developed countries in the West has gone through hundreds of years of development, with marked polarization and relatively high market concentration. Among them, the top 10 in the United States have a market share of 67%, the top 6 in Japan has a market share of 65%, and the top 5 in France has a market share of 90%. The above facts have determined that the domestic cable industry has fierce competition in the internal market, and the lack of competition in the international market. How to improve the domestic market environment and enhance international competitiveness is an important issue in the industry for urgent consideration.

Wire and cable manufacturing costs have soared, but their sales prices are difficult to increase. Therefore, the market competition has become increasingly fierce, especially in the low-end wire and cable products market with relatively low technology added value. Industry insiders believe that the underlying causes of low-cost product competition are blind investment, overcapacity, and oversupply. On the one hand, due to the low investment threshold, a large number of companies have flooded into the industry, causing companies in the industry to “overuse too much”. It is understood that there are as many as 7,000 large and small enterprises in the wire and cable industry, with a production capacity of more than 1,000 billion. At present, China's wire and cable market demand is only 700 billion. The production capacity of these enterprises far exceeds the market demand, and there has been a serious surplus; On the other hand, due to the low threshold, not only the concentration of the industry is getting lower and lower, but also some “shopping companies” that do not necessarily have the necessary means of production capacity, quality control and testing can be used in the industry and become counterfeit. Fake and shoddy, shoddy, cutting corners, shoddy work, and shoddy production of cable products, and by disrupting the market competition order by means of lowering the sales price, non-standard products are popular, not only bury huge security risks, but also aggravate the disorderly competition in the industry. It also makes it difficult for law-producing companies and distributors to work harder, which in turn affects the image and development of the entire industry.

With the continuous deepening of China's economic system reform and the continuous development of the market economy, the transformation and reorganization of assets in China's cable industry have entered a period of intensive progress. The outcome of a major industry reshuffle is bound to be the privatization, joint venture or foreign-owned solemnization of state-owned enterprises. . As an investment industry, the predicament of the cable industry has long relied on the market demand brought by public investment, satisfies the expansion of low-tech capacity, blindly follows the trend, and constantly competes for prices by fighting down prices. However, once the growth rate of social investment slows down and the market fluctuates, the pressure brought about by the overcapacity will be released like a volcano that has been suppressed for a long time, and the state of the industry will deteriorate rapidly.

The adjustment and integration of the cable industry is imperative. Only by finding new economic development momentum can we achieve a leap from big to strong and create first-rate enterprises.

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