Analysis of Development Status of Wire and Cable Industry

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

[Note: In 2010, the total annual amount of copper and aluminum conductors used in the national wire and cable industry was approximately 4.84 million tons and 2.2 million tons. Coupled with the actual sales of China's optical fiber and cable industry, the output value of the wire and cable industry in 2011 could not reach 936.516 billion yuan. The gold content of this figure is up to about 70%. In 2011, China’s GDP was US$8 trillion, and it was converted at the exchange rate of 1:6.3. The RMB GDP corresponding to US$8 trillion was 5.04 billion yuan. The contribution rate of China's wire and cable industry to China's GDP has reached or approached 2%, and I personally believe that it cannot be achieved. ]

In 2011, the national wire and cable industry sold 1.1438 billion yuan, and China's wire and cable industry exceeded trillions for the first time, an increase of 28.3%, and a total profit of 68 billion yuan. In 2011, accounts receivable due to user default amounted to RMB 166.1 billion, of which, wire and cable accounts receivable amounted to RMB 156 billion, and optical fiber and cable accounts receivable amounted to RMB 10.1 billion.

From January to July 2012, the total output value of wire and cable industry in China was 671.5 billion yuan and total profit was 28.1 billion yuan. The account receivables due to user defaults from January to July 2012 were as high as 183.2 billion yuan, of which, accounts for receivables for wires and cables totaled 168.3 billion yuan and accounts receivable for fiber optic cables reached 14.9 billion yuan.

From January to July of 2012, the average profit of the wire and cable industry in the country was only 4.11%. This profit was formed on the basis of fake and shoddy goods, shoddy goods and short goods. This phenomenon shows that the wire and cable industry is full of crisis. The wire and cable industry's profits have been lower than the average profit of the Chinese electrician industry by 4.88%.

The output value of China's wire and cable industry has exceeded 1 trillion yuan, accounting for more than 25% of the global wire and cable market share. We seem happy but we cannot be happy. China's wire and cable industry has become the world's only major manufacturing country with no internationally renowned brands. This is not glory, but shame, which truly reflects China's wire and cable industry.

The manufacturing scale of China's wire and cable industry has increased rapidly, developed extensively, and expanded in an irrational manner. The technical progress and product upgrades are slow, and the repeated construction is very serious. As a result, the entire industry is seriously overcapacity. Most of the companies are engaged in mid-to-low-end market shopping and melee, high-end markets, high-end brands fall, and counterfeits and counterfeits are flooded, resulting in low profits. .

The wire and cable companies in Japan and South Korea, after experiencing rapid economic growth in their home countries, have all formed well-known wire and cable companies with considerable competitiveness and high degree of internationalization. China's rapid economic development over the past 30 years is an exception. The high-end market share in the world's wire and cable manufacturing technology is still largely occupied by large companies in Europe, the United States, and Japan. We must soberly recognize the gap.

The wire and cable industry is a system industry. It is an extremely complicated process from the smelting of industrial raw materials, through product design, trial production, to the batch production, testing, use and integration of finished products, and even to the recovery and recycling of products.

China's wire and cable industry lacks culture. The purpose of many employers is to earn money, and when appropriate, transfer to other more profitable industries. China's wire and cable industry still lacks skilled industrial workers. It is also because the purpose of workers is to make money rather than to improve their jobs.

The most serious problem facing the wire and cable industry in China today is not technology, market, management and innovation, but ethical issues. Today, China's wire and cable industry has been unable to produce the reasons for having an international brand. The lack of compliance with the moral bottom line is a key factor.