The basic problems of the cable industry remain unresolved

time:2022-11-26

Last year, due to the impact of the global financial crisis, China's wire and cable industry was hindered. Moreover, the wire and cable manufacturers in China are mainly concentrated in East China, Central China and North China, of which the cable industry in East China is the most prominent, accounting for half of the industry, and has relatively obvious advantages in terms of scale, strength, income and benefits. Therefore, in 2012, relevant institutions conducted research on more than 20 large, medium and small wire and cable manufacturers in Jiangsu Province, which are representative, However, the survey results show that the wire and cable industry has been greatly affected by the economic and financial crisis, especially by small and medium-sized enterprises, resulting in less than 50% of the operating rate. Although the situation of model enterprises has eased slightly, the phenomenon of insufficient operating rate is also pressing.


At the beginning of 2013, China's wire and cable industry was intoxicated with the New Year's vision. Moreover, the power development, industrialization and other major situations are the reasons for the wire and cable industry to be happy. But it has already arrived in April in a twinkling of an eye. At present, it is not unreasonable to worry about the market surplus but the lack of stamina. For example, at present, the product quality problems in the industry have not been effectively supervised and solved, and the technological innovation of products has not been effectively improved. In addition, the cost of raw materials and other raw materials has risen. It is still worrying whether wire and cable manufacturers can adapt to the market demand in the future and develop wire and cable products that meet the market requirements.


Moreover, up to now, the wire and cable industry in China still faces a series of serious problems, such as low entry threshold, serious homogeneity, low concentration, low technology content, fierce competition at low prices, and serious jerry built, shoddy and shoddy products. Although the industry has been urging relevant government departments to strengthen supervision and issue relevant policies in recent years, there is no fundamental improvement at present, The unhealthy phenomena in the industry are also rampant.


At present, there are more than 9000 large and small wire and cable manufacturers in China, while the market share of the first 29 large manufacturers with the strongest local strength is only less than 15%. The pattern of excessive decentralization has made it difficult for Chinese wire and cable manufacturers to achieve economies of scale, and has aggravated overcapacity and excessive market competition.


In addition, due to the rising prices of raw materials, especially copper, in recent years, some wire and cable manufacturers have been playing tricks on raw material costs. In particular, power cables, electrical equipment wires and cables and winding wires use more copper, so some wire and cable manufacturers do not hesitate to wrap them with good copper, but replace them with bad copper or even aluminum and steel, or cut corners, short meters and short yards. All kinds of chaos emerge one after another.


The low price competition, bad competition and even vicious competition in the industry have a long history, which has seriously hindered the orderly and healthy development of China's wire and cable industry. Although the current procurement in the industry seems to be "strictly" in accordance with the Bidding Law, in practice, we found that some wire and cable manufacturers, in order to win the bid, have adopted the lowest price bidding, and then obtained compensation by other means. As a result, the vicious circle of competition in the industry has been created, and the product quality is difficult to meet the standard, which also brings certain hidden dangers to the safety of the project and users' lives and properties.


Although the wire and cable industry is a supporting industry, it accounts for 1/4 of the output value of China's electrical industry and is also the second largest industry after the automobile industry. Wire and cable products are widely used in various sectors of the national economy, which are the basic guarantee for the normal operation of modern economy and society, and are also essential products in people's daily life. In addition, the position of wire and cable products after being used for construction is relatively hidden, so the quality problems are not easy to be found by the naked eye, and the detection and supervision are also difficult. Therefore, if we adopt low price competition to win the market, and then save costs and make up the deficit from raw materials, it is easy to lose money because of small things, meet the illegal enterprises, but harm the masses of consumers.


How can wire and cable manufacturers stand in the industrial perspective, stand in the social perspective, and obtain profits without harming the interests of the masses is a more realistic problem. The survival of enterprises is basically for profit, but as the saying goes, "Gentlemen love money in a proper way", they cannot do so at the cost of harming the interests of the masses for their own interests. Finally, in terms of quality supervision, the state and relevant testing institutions need to strengthen supervision and punishment to further ensure the quality and safety of wire and cable products