China's wire and cable industry is facing a new round of development

As China's wire and cable industry enters a rapid development track, the wire and cable industry is attracting more and more attention. At present, China's wire and cable industry has become China's machinery industry second only to the automotive industry, the annual output value has reached 900 billion yuan. Recently, Li Guolin, Secretary-General of China Cable Industry Association, said in an interview with Ben Wang reporters that although the industry is developing fast, it is currently facing excess production capacity, the quality of products is worrying, the product structure is lagging, the industry price is disorderly competition, and the industry's profit rate is rapidly declining. Serious challenges.

Mei Zhenxin, president of the China Mechanical and Electrical Industry Price Association, analyzed that the average profit margin of the wire and cable industry in 2010 was 4.55%, which was not only lower than the machinery industry by 2.6 percentage points, but also lower than the industry's own level in the previous two years. From January to May this year, it has been reduced to 3.94%.

He said that at present the product structure in the cable industry is irrational and the homogeneity of enterprise products is serious. In addition, the industrial organization structure is irrational and lacks leading enterprises with advantages. At present, large enterprises are not strong, and small businesses are not specialized or savvy, and the price war between enterprises is becoming increasingly fierce.

According to the former Secretary of the National Development and Reform Commission’s Price Division, Changsha Training and Training pointed out that disorderly market competition is entirely due to the fact that some companies do not study, do not study, and are not familiar with price laws and regulations, and there is no price management system in the company. Professional personnel are not well equipped. As a result, it created a chaotic situation in the market.

Li Guoqiang, deputy director of the Human Resources Research and Training Center of the Development Research Center of the State Council, said that the current direction of the cable industry is active structural adjustment and upgrading. The strategic adjustment of the economic structure is the main direction of the country’s economic approach to accelerate structural change. As the traditional industry, the cable industry should pay close attention to the development trend of the cable industry, promote mergers and reorganizations of the industry, cultivate leading enterprises, and increase industrial concentration. Attention should be paid to cultivating lines. The new growth pole of the cable industry, the development of high-end cable products, pay attention to high-tech products with growth potential, enhance the international competitiveness of the cable industry.

“The wire and cable industry is facing a new round of development. To get rid of low-level redundant construction and vicious competition as soon as possible and form a reasonable product grade and industrial structure, each company must identify its own positioning.” Li Guoqiang believes that a radical change in the current In the industry structure, the enthusiasm of enterprises alone is not enough. It also requires the joint efforts of government departments, industry associations, and users.

He revealed that in the future, the State Council Development Research Center Enterprise Research Institute will conduct in-depth investigations and studies on issues such as the “China Wire and Cable Industry Development Prospects and Institutional Policy Study” to guide the future development of the cable industry. In addition, an e-commerce platform will be set up, industrial funds will be established, the price mechanism will be improved, and mergers, reorganizations, and consolidations will be promoted. ”

According to statistics, there are more than 7,000 cable manufacturing companies in China, employing more than 700,000 people. China's cable industry has surpassed the United States, Japan, and Europe to become the world's largest cable producer.