Survival of the fittest in the wire and cable market, industry technology advances towards standardization

SMM News: Although China's wire and cable industry has gone through more than 20 years and has achieved considerable development, it still has not broken out of the vicious circle of big but not strong, and there is still a big gap compared with the world's first-class companies. There are many problems such as low industrial concentration, large number of enterprises and small scale, insufficient economies of scale, insufficient independent innovation capabilities, and prominent product structural contradictions. With the continuous progress of market competition, the development of my country's wire and cable enterprises is facing this market situation of survival of the fittest.

Industry: Chinese wire and cable companies will eliminate 30% by 2015

my country's wire and cable industry has low concentration and low entry barriers. Although many small companies have entered this industry, many of them will be eliminated in the future competition. Because this industry is a lenient entry and strict exit industry, its threshold lies in the market, and the market will naturally eliminate these companies. China's wire and cable market has more than 7,000 manufacturing companies, with an output value of 1 trillion yuan, and nearly 700,000 employees, making it the world's largest in total.

The industry is concentrated in Guangdong Province (e.g. Dongguan City is dominated by electric wires), Jiangsu Province (e.g. Yixing City is dominated by power cables), Hebei Province (e.g. Ningjin County is dominated by low-voltage cables), Anhui Province (e.g. Wuwei County's special Wire and cable), Henan, Chongqing, Shandong and other places. Liu Long said that in recent years, as the economic development has faced bottlenecks in energy and power shortages, my country has continuously increased its investment in power, which has brought the wire and cable industry into a period of rapid development.

However, due to the huge output value and profits of the industry, and more than 90% of the domestic cable companies' production capacity are concentrated in low-end products, a large number of small companies have entered this industry. Many small companies even take the risk and use shoddy products, resulting in only about 1/3 of the qualified products in this industry.

Although the wire and cable industry is only a supporting industry, it occupies a quarter of the output value of China's electrical industry. It has a wide range of products and a wide range of applications, involving industries such as electric power, construction, communications, and manufacturing, and is closely related to various sectors of the national economy. Wires and cables are also known as the "arteries" and "nerves" of the national economy. They are the basic equipment indispensable for the transmission of electric energy, the transmission of information, the manufacture of various motors, instruments, and meters, and the realization of electromagnetic energy conversion. They are the future electrification and information Necessary basic products in a modernized society.

Technology: Security cable technology has entered the era of standardization

In order to better promote the security industry and ensure the harmonious development of social life and work, security cable products must develop in a safer and faster direction. As one of the most important cable product development and production bases in the world, China currently has flame-retardant and fire-resistant, high-temperature and low-temperature resistance, low inductance, low noise, environmental protection, low smoke and halogen, anti-termite and rodent, waterproof and moisture-proof, etc. A series of cable products with unique performance and special structure have formed a certain degree of productivity. With the continuous improvement of society’s requirements for security protection and system safety, and through extensive publicity, promotion and collaboration by governments, industries, and enterprises, we believe that the above-mentioned new technology cable products with high performance, efficiency and safety will surely be the same as those in western developed countries. That way, it is widely used in security systems.

Industry standards are the foundation for the development of industries and enterprises, and product technical standards are an effective guarantee for product quality. With the development and maturity of China's security industry, the national competent authorities are vigorously promoting the standardization of the security industry, and currently the formulation of technical standards for security cable products has been included in the work plan for the next stage. We believe that with the joint efforts of the government, industry and enterprises, the production and quality assurance of security cable products will have rules and laws to follow, and the technology and application of security cables will become more reliable and more reliable. The field of specialization is advancing rapidly.

Market: Leading companies occupy the mainstream market

China's security industry started from scratch, grew up in competition, and has formed a certain scale after decades of development. Driven by global economic integration, leading companies among different products in the industry will inevitably emerge, and industry concentration will continue to increase. Only when there is industrial concentration and leading companies in the industry, can the industry establish a common development concept. Only from the most basic considerations of survival, can enterprises enter the most important perspectives of promoting the healthy development of the industry, such as scientific management, core technology, and core products, so as to avoid low-quality and low-end unfair competition. In the past, the chaotic competition of cable manufacturers of large and small, different good and bad, and some manufacturers in the industry who lacked technical strength and capital scale will gradually end the vicious competition for local interests and immediate survival.

At present, the leading companies in the domestic security industry have begun to take shape. The domestic security cable market has formed a number of mainstream companies. These companies have continued to extend their products and channels through continuous improvement of corporate management and team building, whether in the brand The degree of influence is the overall improvement of product quality and service specifications, which have been increasingly accepted and affirmed by the industry and users. I believe that with the continuous improvement of industry concentration and the continuous expansion of the production scale of such enterprises, the productivity generated by the scale will be fully reflected in the market, and the cost-effective products and standardized services will surely occupy the security cable The vast majority of market share.