Wires and cables have played a very important role in my country’s infrastructure construction. With the continuous development of our country, for the power cable industry, in response to changing markets and needs, the traditional industry model can no longer adapt to market development, so for For many companies, the transformation of the industry brooks no delay.
my country's wire and cable industry is still a trend of continuous development, but there are also seven major problems, which severely restrict the healthy and sustainable development of the industry. Take Beijing's wire and cable industry as an example.
First, there is a surplus of mid-to-low-end products and insufficient high-end products. There are about tens of thousands of companies in my country's power cable industry, but most of them are small in scale and low in product standards. There are not many companies that can really win bids on national key projects. There are many wires and cables in some special and important fields that are lacking, so they can only rely on imports when needed.
Second, repetitive production and repeated construction are prominent, and production capacity is surplus. It should be said that wires and cables are relatively easy to produce products, and the threshold for market access is also low. In the past few years, in the transformation of urban and rural power grids, some enterprises "seized the opportunity" and rushed forward; even the electric power department rushed to build factories for production. In recent years, we have caught up with the accelerated pace of national infrastructure construction, and the real estate industry has continued to heat up. Many companies have emerged to see what others produce and produce what they produce, resulting in duplication of products and overcapacity.
Third, the phenomenon of local protectionism and monopoly is serious, and the market lacks regulation. Due to the overcapacity of wire and cable and the fierce market competition, some local governments engage in local protection and require the use of local products; some power departments only use products produced by their own system companies or products of related households, and it is difficult for other companies to enter. Some regulatory agencies also only check foreign products, but do not check local and local products, causing unfair competition. In the low-end wire and cable market where the added value of technology is relatively low, price competition is quite common. Some "workshop enterprises" that do not have the necessary means of production capacity, quality control and inspection at all have been mixed in the industry, becoming the source of counterfeit, shoddy, shoddy, cutting corners, and shoddy cable products, and they have driven down sales. Means such as prices disrupt the order of market competition and aggravate disorderly competition in the industry.
Fourth, the price of raw materials continues to rise. Due to fierce market competition, it is difficult to raise prices for cable products, and it is difficult for companies to survive. The main raw materials of the wire and cable industry are copper and aluminum. Although the prices of copper and aluminum have fluctuated in recent years, they have continued to rise; coupled with the increase in energy, transportation costs and employment wages, the production costs of wires and cables have continued to rise. In order to maintain profitability and maintain production, some companies have to cut corners, lower product standards, and even produce counterfeit and shoddy products.
Fifth, the R&D investment is low and the innovation capability is insufficient. Some cable companies are eager for quick success, busy developing production and increasing output, and are not willing to invest capital and intelligence to develop new products, especially high-precision products; they also do not pay attention to improving product quality and creating famous brands. As a result, local cable companies lack independent intellectual property rights, key technologies are controlled by others, and the development of high-end technology and high-end products is slow. According to statistics, only 30% of domestic cable brands have reached the level of acceptance and competition in the international market. Enterprises lack professional talents, graduates of relevant colleges and universities are reluctant to work in small and medium-sized cable companies, most of the employees of private enterprises have not received relevant professional training, there is a serious shortage of technical innovation talents, and most companies lack the investment of special funds for related product development and innovation. All lead to the lack of independent technological innovation of the current domestic cable manufacturers, and the contradictions in the product structure are prominent.
Sixth, winning the bid at a low price affects the sound development of the cable industry, and downstream companies occupy a large amount of funds from upstream companies. In the bidding activities, downstream customers win bids at low prices, and cable companies dump at low prices to survive, order national standard products for non-standard products. The downstream customers of the industry are strong and large customers, occupying a large amount of capital of cable enterprises, which affects the normal operation of enterprises in the entire industry.
Seventh, there are many qualifications for cable access to the network, and cable companies are overwhelmed. Wire and cable is a must-use product in various industries, and each industry has different requirements for cable performance or has its own focus. Therefore, various restrictions are placed on cable products to enter the network. Those who have not obtained the network access qualification are not allowed to use the network, causing cable manufacturers to use it every year. Expend a lot of manpower, material resources and financial resources to deal with these various qualifications. For example, the most common cables need to have a production license, low-voltage wires need to have 3C compulsory certification, mining cables need to have coal mine system safety certification, indoor communication cables need to have a network access license from the telecommunications bureau, and TV cables need to have a radio and television department. Network access license, LAN cable for computer network must have network access license, flame-retardant and fire-resistant cable must have record approval certificate from fire department, etc. What's more, the same product needs to have licenses from several user departments at the same time. Enterprises are exhausted to obtain various network access qualifications, and the marketing expenses of their products have greatly increased.
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