Analysis of the Development of Wire and Cable Industry in China

The wire and cable industry is more dependent on funds. Affected by the prices of raw materials such as copper, aluminum, and plastics, cable manufacturers face tremendous cost pressures. The shortage of funds and tight funding chain have become an important factor restricting the development of small and medium cable companies. With the increasingly fierce market competition, mergers and acquisitions and capital integration of cable companies have become an inevitable trend.

Equipment integration The production equipment is a fixed asset of the company and an important resource for the company. Many products produced by companies are accidental and infrequent. Therefore, part of the production equipment of the company will be idle for a long time. The idleness of resources is the biggest waste. Therefore, companies must carefully analyze the use of relevant equipment, and integrate the production equipment and production lines of the company.

How can China's wire and cable market explore the market?

Only by concentrating resources and specializing in the main business can we make the cable industry bigger, stronger, and better. Only focusing time on the cable industry will help foster professional talents and technology. Many areas of the cable manufacturing industry are high-tech intensive industries. Without a strong professional and scientific team, it is impossible to carry out technological innovation and scientific research and development.

For China's cable economy to integrate into the global market, it needs more standard sense of competition and a sense of national responsibility. Chinese companies must also learn to use technology strategies that compete with standards and rivals. If China's international bidding for large projects, but also set national standards, the future market competitive advantage will be clearly reflected. The facts show that nothing can be done as a result. In the next few years, the national cable manufacturing industry will continue to experience a difficult stage. There must be a number of backbones, always focusing on the development of the cable industry, and supporting the banner of China's national cable industry. The development of specialization can be extended along the upstream and downstream of the product and industrial chain. The development space is actually huge.

When many Chinese companies opened up overseas markets, we found that in addition to a series of trade protection barriers, foreign countries often set technical barriers through the formulation of technical standards. Technical barriers also allow Chinese companies to pay enough production costs and marketing costs. For example, to enter the US market to pass UL certification, to meet European standards in Europe; some European industries even have to revise a standard every two years, the purpose is very clear, that is, allow you to turn around their standards. China's standards are far behind the changes in emerging markets. Front-line products such as wind power, nuclear power, optoelectronics, and power grid smart grids do not have the early intervention of the national standard.

In short, as the cable industry gradually matures and industry competition intensifies, corporate mergers and restructuring will inevitably lead to the reintegration of products, talents, funds, and equipment within the industry and between companies.