The current situation and gaps in the development of the cable industry

In 2010, the national wire, cable and optical fiber cable industry achieved a total industrial sales output value of about 936.516 billion yuan at current prices, an increase of 29.58% and 27.4% year-on-year respectively. The total amount of copper and aluminum conductors used in the industry is about 4.84 million tons and 2.2 million tons, accounting for about 64% and 13% of the national copper and aluminum consumption respectively, and about 33% of the global wire and cable copper conductor production (according to CRU forecasts, in 2010 the world copper conductor production will reach 14.4 million tons).

[Note: In 2010, the total amount of copper and aluminum conductors used in the national wire and cable industry was about 4.84 million tons and 2.2 million tons. Coupled with the actual sales of China's optical fiber and cable industry, the sales output value of the wire and cable industry in 2011 will definitely not reach 936.516 billion yuan. The gold content of this figure is at most around 70%. In 2011, China's GDP was 8 trillion US dollars. Converted at the exchange rate of 1:6.3, the RMB GDP corresponding to 8 trillion US dollars was 5.04 billion yuan. The contribution rate of the national wire and cable industry to China's GDP is at or close to 2%, which I personally think is absolutely unreachable. ]

In 2011, the sales output value of the national wire and cable industry was 1,143.8 billion yuan. For the first time, China's wire and cable industry exceeded one trillion yuan, an increase of 28.3%, and the total profit was 68 billion yuan. In 2011, the industry accounts receivable due to user defaults reached 166.1 billion yuan, including 156 billion yuan of wire and cable accounts receivable, and 10.1 billion yuan of fiber optic cable accounts receivable.

From January to July 2012, the sales value of the national wire and cable industry was 671.5 billion yuan, and the total profit was 28.1 billion yuan. From January to July 2012, the industry accounts receivable due to user defaults reached 183.2 billion yuan, including 168.3 billion yuan of wire and cable accounts receivable, and 14.9 billion yuan of fiber optic cable accounts receivable.

From January to July 2012, the average profit of the national wire and cable industry was only 4.11%. Dongguan wire and cable equipment manufacturers believe that this profit is still based on fake, shoddy, and short weight. This phenomenon is formed on the basis of It shows that the wire and cable industry is full of crisis. The profit of the wire and cable industry has been lower than the average profit of China's electrical industry by 4.88%.

The output value of China's wire and cable industry has exceeded 1 trillion, accounting for more than 25% of the global wire and cable market share. We can't be happy with what seems like a happy thing. China's wire and cable industry has become the only major manufacturing country in the world without an internationally renowned brand. This is not a glory, but a shame, which truly reflects the stage of China's wire and cable industry.

The manufacturing scale of China's wire and cable industry is increasing rapidly, developing in extensive, and expanding irrationally. However, technological progress and product upgrades are slow, and repeated construction is very serious, resulting in serious overcapacity in the entire industry. Most companies are shopping and fighting in the middle and low-end markets, high-end markets and high-end brands have fallen, counterfeit and shoddy products are rampant, and profits are meager.

Wire and cable companies in Japan and South Korea, after experiencing rapid economic growth in their countries, have formed well-known brand wire and cable companies with considerable competitiveness and a high degree of internationalization. China has experienced 30 years of rapid economic development, but it is an exception. The high-end market share in the technical field of wire and cable manufacturing in the world is still basically occupied by large enterprises in Europe, the United States and Japan. We need to be soberly aware of the gaps that exist.

The wire and cable industry is a systematic industry. From the smelting of industrial raw materials, through product design, trial production, to mass production, testing, use and integration of finished products, and even development to product recovery and recycling, it is an extremely complex process.

The Chinese wire and cable industry lacks culture. The purpose of many bosses is to make money, and when appropriate, they will immediately move to other more profitable industries. China's wire and cable industry still lacks skilled industrial workers, also because the purpose of workers is to make money rather than keep improving on their posts.