1. development status

At present, there is a big gap between the development level of China's wire and cable industry and the important position of wire and cable industry. The overall level of wire and cable product quality in China is not high, the qualified rate of product quality supervision and spot check has been hovering at a low level for a long time, the product quality of small and medium-sized enterprises fluctuates greatly, and some enterprises do not have a strong sense of responsibility to fulfill the main responsibility of product quality. the phenomenon of quality loss and violation of the law is more prominent, and the quality problems bring great hidden dangers to safety, environmental protection and health. At the same time, the overall production capacity of wire and cable is seriously surplus, and the utilization rate of ordinary wire and cable production equipment is generally less than 40%; the industrial concentration is not high, the development stamina of enterprises is insufficient, the ability of independent innovation is not strong, and the homogenization competition of middle and low-end products is serious; the industry is disorderly and excessive expansion, and the market competition is not standardized. These problems are bound to restrict the quality of wire and cable products to further improve.

According to the classification of the National Bureau of Statistics, the wire and cable industry belongs to the electrical machinery and equipment manufacturing industry. Classified by use, the main products include power cables, bare wires, winding wires, electrical equipment cables, communication cables and optical cables. Wire and cable products are classified according to voltage levels and can be divided into different voltage levels such as low voltage, medium voltage, high voltage, ultra-high voltage and ultra-high voltage. In our country, the voltage below 110KV is called distribution voltage, which completes the function of step-down processing of electric energy and distributing it to electric energy users in a certain way. The voltage between 110KV-1000KV is called transmission voltage, which completes the function of long-distance transmission of electric energy. In the transmission voltage, the voltage between 110KV-220KV is high voltage, the transmission voltage of 330KV-750KV grade is ultra high voltage, and the voltage of 1000KV AC and DC positive and negative 660KV or above grade is called ultra high voltage.

The wire and cable industry management organization is the wire and cable branch of the China Electrical Appliance Industry Association under the China Federation of Industry. Its main functions are to assist the government in the self-discipline management of the industry, represent and safeguard the interests of the wire and cable industry and the legitimate rights and interests of member enterprises, and organize the formulation of the wire and cable industry. 

Ordinary cable companies mainly earn profits by earning processing fees. When an enterprise signs a sales contract with a customer, it generally takes the purchase price of the copper rod plus a certain percentage of the gross profit as the sales price. In terms of payment, customers mainly adopt the stage payment mode, such as the "2-5-2-1" mode, I .e. 20% advance payment after the contract is signed, 50% after the product is delivered, 20% after the product is installed, and the remaining 10% is paid as quality deposit after the expiration of the warranty period. This repayment model requires cable companies to plan cash flow reasonably to avoid capital turnover difficulties. In the procurement of copper rods, the purchase price of some of the use of the current price model, some of the use of copper and aluminum spot price plus copper and aluminum rod processing fees pricing model, different procurement and sales models make cable enterprises in response to fluctuations in raw material prices will have different exposure.

Problems encountered in the development of wire and cable industry

The wire and cable industry is more dependent on capital. Affected by the prices of raw materials such as copper, aluminum, and plastics, cable manufacturers are facing tremendous cost pressures. The shortage of funds and the tight capital chain have become an important factor restricting the development of small and medium-sized cable enterprises. With the increasingly fierce market competition, the merger and reorganization of cable enterprises and the integration of funds have become an inevitable trend. 

Equipment integration 

Production equipment is the fixed assets of enterprises, but also an important resource of enterprises. In the products produced by various enterprises, many businesses are accidental and infrequent. Therefore, the production equipment of the enterprise part will be idle for a long time. The idleness of resources is the biggest waste. Therefore, enterprises should carefully analyze the utilization of relevant equipment and integrate the production equipment and production lines of enterprises.

On November 14, 2011, the "Guiding Opinions on Promoting the Quality Improvement of Wire and Cable Products" (hereinafter referred to as the "Opinions") jointly issued by the General Administration of Quality Supervision, Inspection and Quarantine, the Ministry of Industry and Information Technology and related industries and industry associations was published on the website of the General Administration of Quality Supervision, Inspection and Quarantine, causing media attention. The core spirit conveyed by the "Opinions" is to improve the overall quality of my country's wire and cable products through comprehensive rectification of product quality supervision, industrial policy constraints and guidance, and promote this industry that is referred to as the "blood vessel" and "nerve" of the national economy. Sustainable and healthy development. Some people in the industry privately compare this comprehensive rectification to "a storm", but more people believe that this will be a long-term, deep-seated, and methodical slow effort. It won't be another "gust of wind".

2. future development trend 

China wire and cable how to open up the market puzzle? 

Only by concentrating resources and specializing in the main industry can the cable industry become bigger, stronger and more refined. Only by focusing on the cable industry can it be conducive to the cultivation of professional talents and the accumulation of technology. Many areas of the cable manufacturing industry are high-tech intensive industries, without a strong professional scientific and technological team, unable to carry out technological innovation and scientific research and development. 

For China's cable economy to integrate into the global market, more standard competition awareness and national responsibility are needed. Chinese enterprises should also learn to use standards and competitors to compete with technical strategies. If China's international bidding projects also set national standards, the future market competitive advantage will be clearly reflected. Facts show that doing everything will only result in doing nothing well. In the next few years, China's cable manufacturing industry will continue to experience a difficult stage. There must be a group of backbone forces, always concentrate on the development of the cable industry, and support the banner of China's national cable industry. The development of specialization can extend along the upstream and downstream of the product and industrial chain, and the development space is actually huge. 

When many Chinese enterprises open up foreign markets, we find that in addition to a series of trade protection barriers, foreign countries often set up technical barriers through the formulation of technical standards. Technical barriers also make Chinese enterprises pay enough production costs and marketing costs. For example, to enter the U.S. market to pass UL certification, to Europe to meet the EU standards; some European industries even every two years to revise the standard, the purpose is very clear, is to let you around their standards. And China's standards are far from keeping up with the changes in emerging markets. Wind power, nuclear power, photoelectric composite, grid smart grid and other cutting-edge products are not the national standard of early intervention. 

Recently, the global wire and cable market is becoming more and more mature, and the development of wire and cable manufacturing industry is slowing down, and the growth rate is not large. With the changes in the external environment and the impact of internal competition, the world wire and cable industry has entered the pattern of monopoly competition of several giants, in the world-wide vertical and horizontal closed horn line. Almost at the same time as South Korea's LS Group announced its entry into China, the new factory Nexon (Shanghai) Cable Company with an investment of 2200 euros officially started in April, marking the beginning of the production of the world's advanced special cables in China. Special cable products market demand for us to set up a huge and fine division of the stage, we need to grasp, to develop, to occupy. In today's fierce competition and unprofitable ordinary products, why not focus on the development of special cable products.

In short, as the cable industry gradually matures, industry competition intensifies, mergers and reorganizations, will inevitably promote products, talent, capital, equipment in the industry, the re-integration of enterprises.