Bright prospects for the development of the industry. In terms of total industrial output value, the wire and cable industry is the second largest industry in China after the automobile industry. In the world, China's total output value of wire and cable has exceeded Japan's second only to the United States, is the world's second largest producer of wire and cable. With the continuous growth of market demand, in recent years, the overall development of the wire and cable industry is very fast, the number of new enterprises is rising, and the overall technical level of the industry has been greatly improved.

China's power grid construction has entered a comprehensive stage. During the "Eleventh Five-Year Plan" period, my country will accelerate the construction of 1000kV AC test demonstration projects and the construction of ± 800kV DC transmission projects, further accelerate the construction of cross-regional power grids, strengthen the national interconnection structure, and strengthen the 500kV(330kV) main grid of regional power grids and provincial power grids., Accelerate the formation of 750kV grid in the northwest, strengthen the construction of key urban power grids, improve rural power grids, improve the level of rural electrification, and vigorously promote the application of advanced and apply. Obviously, the upgrading of power transmission and transformation equipment, the construction and transformation of large-capacity transmission lines, and the further transformation of urban and rural power grids will bring huge business opportunities to cable companies.

While the market continues to expand, problems affecting the healthy development of the industry continue to emerge. With the rapid development of power grid construction, the "Eleventh Five-Year Plan" industry has a long way to go. It has been commented that the total output value of the top ten wire and cable manufacturers in the national wire and cable industry only accounts for about 10% of the entire industry. The industrial concentration is low, the economies of scale are insufficient, and the structural contradictions of products are prominent, especially the oversupply, which has intensified the industry. Disorderly competition.

There are a large number of wire and cable enterprises in China, but most of them are small in scale, 95% of which are small and medium-sized enterprises. The phenomenon of repeated investment and blind follow-up by enterprises is very serious. The phenomenon of mass action has caused a serious oversupply of some products and produced low-price competition, which has brought serious consequences at the expense of product quality. The Guangdong Provincial Bureau of Industry and Commerce has found that nearly 80% of the wire and cable products on the provincial market are unqualified, and the quality difference is shocking.

The market spot check report shows that many wire and cable products in the current circulation field are produced by cutting corners in order to reduce costs. These products can easily cause accidents such as electric shock, short circuit and fire, and consume a lot of electricity. Sampling inspection found that wire and cable jerry-built phenomenon is serious, some enterprises in order to reduce costs, will account for nearly 80% of the cost of raw materials copper conductor significantly "shrink", greatly reducing the actual cross-sectional area; some manufacturers in the production of the use of impurity copper, resulting in 49.6 of wire and cable products conductor resistance index is not qualified. Sampling inspection also found that 58.3 percent of the product insulation, sheath before aging tensile strength index is unqualified. Users use such products, prone to electric shock risk, resulting in electrical short circuit fire serious consequences. These inferior products to the normal operation of the power system buried many hidden dangers, a serious threat to personal safety.

The reason is mainly due to the rapid growth of production, the market has a serious surplus. At the same time, due to the low entry "threshold", not only the concentration of the industry is getting lower and lower, but also some "workshop enterprises" that do not have the necessary means of production capacity, quality control and testing can be mixed in the industry, becoming the source of fake and shoddy, shoddy, shoddy and shoddy products.

As the most important supporting industry in power grid construction, many enterprises in the wire and cable industry hope to win a certain market share by virtue of the business opportunities of power grid construction in the 11th Five-Year Plan period. The author believes that in the face of new market demand, upgrading the product level as soon as possible is the top priority of the industry development.

Looking at the domestic and foreign markets, it can be said that the development opportunities and challenges of China's wire and cable industry coexist: the rapid development of power grid construction, the requirements for the quality of cable technology are increasing day by day; in the face of the new situation of economic globalization, it has also greatly intensified the international competition of cable products. At present, only a few cable varieties in China can reach the level that can be accepted by the international market and can participate in competition. Most cable varieties need to be developed urgently and need to be improved.

The advantage of enterprises in the face of the market is no longer the size of the "territory", but should be the technical strength, product grade competition. It can be said that the development of the industry has entered a critical period. Therefore, the whole industry needs to carry out effective strategic adjustment, establish industry system norms, and solve major problems such as its own innovation system and mechanism.

At present, the most important thing for the whole industry is to improve product quality and focus on supporting the development of marketable, high value-added and low-energy products. Resolutely eliminate products with backward technical performance and serious waste of resources. At the same time, the market circulation of jerry-built products is strictly prohibited, and repeated construction is resolutely stopped to promote the healthy development of the industry.