How can China's cable industry get out of the loop?

The 2012 that was just in the past was a stumbling block to the Chinese wire and cable industry: the impact of the global financial crisis and the slowdown in GDP growth led to the general lack of operating capacity and overcapacity in the industry, even causing people to close down the industry. Tide worry.

The current year of 2013 is the year when the Chinese cable industry thinks about a new road. In the face of global political and economic adjustments, all walks of life are actively changing to adapt to the new political and economic realities. Then, as the "vascular" and "nervous" of the national economy, what will the wire and cable industry go from here in the global opportunity for major changes?

Big but not strong circles

From the perspective of the international environment, the current global wire and cable market scale has exceeded 100 billion euros, of which the market size in Asia accounts for 37%, the European market is close to 30%, the American market accounts for 24%, and other markets account for 9%.

From the perspective of domestic policies, according to the "2012-2016 Wire and Cable Industry Macro Investment Environment and Industry Development Trends Analysis Report," it shows that during the "12th Five-Year Plan" period, the speed of China's railway construction will bring about the locomotive cables, communications and signal cables, etc. The huge demand of the market. In 2013, with the continuous expansion of China's power industry, data communications, and urban rail transit industries, the demand for wire and cable will also grow rapidly, driving the development of China's wire and cable industry.

A series of favorable factors also show that China's wire and cable industry has a vast domestic and foreign markets. And as early as 2011, China's total output value of wire and cable has surpassed that of the United States, ranking first in the world.

However, it is undeniable that China's cable is large but its strength is not strong.

From a ranking of global wire and cable companies, one can look a bit into the rankings: divided by country, the “leader” of Italian Prysmian Corporation has annual turnover of over 5 billion euros; France’s Nexans’ annual turnover Second only to Prysmian; U.S. General Cable has an annual turnover of more than 3.4 billion euros; Japan’s Sumitomo Electric and Furukawa Electric’s cable business turnover also exceeded 2.5 billion euros; sales of Chinese cable companies are far from Compared with foreign well-known wire and cable brands there is still a big gap.

In addition, there are many problems in the industry, such as very serious redundant construction, overcapacity, large number of companies, small scale, weak technological innovation, and outstanding product structural contradictions, which are already constraining the development of China's wire and cable. It is reported that at present, China's wire and cable industry average investment in R & D funds is less than 1% of sales, domestic cable companies more than 90% of production capacity is concentrated in low-end products, technology and product upgrades are far behind the pace of the market.

Adjust the strategic layout

In 2013, a new round of changes and games are being unveiled. The large and non-strong Chinese wire and cable industry has also led to close attention and thinking among industry players on the strategic layout of cable adjustment.

First of all, grasping the price trend of raw materials is undoubtedly equivalent to “stepping on the beat” for the wire and cable industry.

Copper and aluminum, as the main raw materials for the wire and cable industry, have great impact on wire and cable companies. According to Gan, the deputy general manager of Yingda Futures Co., Ltd., the surplus of copper concentrate in this year and the next year is the consensus of the industry. The pressure on the copper concentrate during the supply process is long-term, but the recent pressure is not particularly obvious. From the short-term and medium-term perspectives, copper prices have room to rebound before the third quarter, and there may be long-term decline after the third quarter. The space for aluminum rebound is smaller, so the long-term weakness of aluminum is a major trend.

From this point of view, the long-term downward trend of major raw materials has certain positive stimulatory effects on the wire and cable industry. In addition, transformation and upgrading are a major measure advocated by the government, economists, and entrepreneurs.

Li Yanxia, ​​Director of the Quality Work Department of China National Machinery Industry Federation, believes: “How can the wire and cable industry grow steadily, attack the high-end, build up the foundation, strengthen management, accelerate the transformation and upgrading of the industry, improve the industrial structure and improve the quality of products, so that enterprises can truly change Strong development is an issue that everyone in the wire and cable industry needs to think about urgently."

Wang Quan, deputy secretary of the Wuxi municipal party committee and mayor of the city, said: “Accelerating the industrial transformation and upgrading and supporting the acceleration of the development of leading enterprises are the priorities and responsibilities of governments at all levels.”

Chen Xiaohong, an economist and researcher at the Development Research Center of the State Council, proposed: “The Chinese cable companies should further clarify and implement the transformation of development methods and implement the development strategy of relying on innovation to enhance competitiveness.”

Jiang Xipei, chairman of the Board of Directors of Far East Holding Group, said: “The Far East Holding Group is now moving from product management to capital management, from business management to market value management, from centralized management to diversified management, from business development to talent development. With culture, it will lead the development and change, from the domestic development to the international development and change in five directions."

The reporter was informed that on May 9, 2013, the “2013 Global Wire and Cable Annual Conference” with the theme “Strategic layout under the new cycle” was held in Yixing, Jiangsu Province. Leaders, experts, chief engineers, board members, and general managers from various countries in the world Many other authorities gathered in Yixing to discuss the growth path of the cable industry under the new cycle, and analyzed in depth the current strategic layout of the global wire and cable industry under the new cycle.