Three characteristics of wire and cable industry under new situation
Three characteristics of wire and cable industry under new situation
Wire and cable are wire products used to transmit electric (magnetic) energy,information and realize electromagnetic energy conversion.Wire and cable are widely used in various departments of the national economy,providing important supporting facilities for various industries,national defense construction and major construction projects.It is known as the blood vessel and nerve of the national economy,and is an important basic industry of the national economy.The quality of wire and cable products is directly related to the economic and social development and the vital interests of the people.
At present,the development of wire and cable industry presents three characteristics.
1.The wire and cable industry is developing rapidly
In 2011,China's wire and cable manufacturing industry continued to grow.As of November 2011,there were more than 7000 wire and cable manufacturing enterprises in China.Among them,there are 3496 Enterprises above Designated Size,with about 731200 employees,total assets of 600.292 billion yuan and total liabilities of 352.003 billion yuan.In 2011,the total industrial output value was 111.0262 billion yuan and the sales output value was 1083.408 billion yuan.Meanwhile,in 2011,the import and export of China's wire and cable manufacturing industry increased,of which the export value was 14.889 billion US dollars,an increase of 19.86%;the import value was 5.325 billion US dollars,an increase of 17.17%.
2.The wire and cable industry is dominated by medium and low-end products with low profit level
From the perspective of product structure,the homogenization of middle and low-end products is serious.About 90% of domestic wire and cable enterprises are mainly engaged in the production of medium and low voltage wire and cable products,with simple production equipment and technology,while high-end products such as nuclear power special cable,ship cable and other fields mainly rely on imports.
At present,China's wire and cable industry market competition is fierce,most of the domestic small and medium-sized enterprises use price competition.Wire and cable enterprises have insufficient development potential and weak independent innovation ability.In the low-end wire and cable market with relatively low technology added value,it is quite common for them to sell at a low price.More than 40% of the enterprises in the industry have experienced adverse competition such as winning the bid below the cost price and malicious price reduction by peers.At the same time,the cost of wire and cable raw materials is rising,and most of the products produced in our country are low-end wire and cable products.Therefore,many wire and cable manufacturers are in a state of low profit or even loss.
Overall,the profitability of China's wire and cable manufacturing industry is lower than the average level of the machinery industry.From January to November 2011,the sales profit margin and return on total assets of wire and cable industry were 8.46% and 9.23% respectively,with a year-on-year growth of only 0.2% and 0.5% respectively.
3.There is a big gap between wire and cable industry and large international companies
Although China is a big producer of wires and cables,it is not a powerful producer.Although Baosheng Technology Innovation Co.,Ltd.,Jiangsu Shangshang cable group,far east Holding Group Co.,Ltd. and other leading enterprises in the industry have strong competitiveness in the market,more than 90% of China's wire and cable production enterprises are small and medium-sized enterprises,with serious overcapacity,low industrial concentration,weak independent innovation ability and homogenization of medium and low-end products The competition is serious,the overall level of product quality is not high,the industry is disorderly and excessive expansion,and the market competition is not standardized.
With the global wire and cable market becoming more and more mature,the development of wire and cable manufacturing industry is slowing down, the growth rate is small,the demand is declining,the cable enterprises are relatively overcapacity,the price is falling,the competition among enterprises is intensifying,and the main raw materials such as copper,aluminum,plastic are rising sharply,which makes the development of many cable enterprises difficult,and a large number of small and medium-sized enterprises or non professional wire and cable enterprises are facing difficulties Cable factories have withdrawn from the market in different ways.At present,the three largest cable manufacturers in the world are Prysmann,Nexans and Sumitomo division cables.French nexen,Italian presman,British BICC and other companies have invested a lot in product development.In recent years,the rapid economic growth of emerging countries such as Asia and the shift of world wire and cable production center to Asia have driven the rapid development of wire and cable industry in China,Vietnam,the Philippines and Egypt in the Middle East.At the same time,due to the unification of Europe,the manufacturing cost in central and Eastern Europe is relatively low,and the growth of wire and cable manufacturing is also quite rapid.
Three characteristics of wire and cable industry under new situation
Wire and cable are wire products used to transmit electric (magnetic) energy,information and realize electromagnetic energy conversion.Wire and cable are widely used in various departments of the national economy,providing important supporting facilities for various industries,national defense construction and major construction projects.It is known as the blood vessel and nerve of the national economy,and is an important basic industry of the national economy.The quality of wire and cable products is directly related to the economic and social development and the vital interests of the people.
At present,the development of wire and cable industry presents three characteristics.
1.The wire and cable industry is developing rapidly
In 2011,China's wire and cable manufacturing industry continued to grow.As of November 2011,there were more than 7000 wire and cable manufacturing enterprises in China.Among them,there are 3496 Enterprises above Designated Size,with about 731200 employees,total assets of 600.292 billion yuan and total liabilities of 352.003 billion yuan.In 2011,the total industrial output value was 111.0262 billion yuan and the sales output value was 1083.408 billion yuan.Meanwhile,in 2011,the import and export of China's wire and cable manufacturing industry increased,of which the export value was 14.889 billion US dollars,an increase of 19.86%;the import value was 5.325 billion US dollars,an increase of 17.17%.
2.The wire and cable industry is dominated by medium and low-end products with low profit level
From the perspective of product structure,the homogenization of middle and low-end products is serious.About 90% of domestic wire and cable enterprises are mainly engaged in the production of medium and low voltage wire and cable products,with simple production equipment and technology,while high-end products such as nuclear power special cable,ship cable and other fields mainly rely on imports.
At present,China's wire and cable industry market competition is fierce,most of the domestic small and medium-sized enterprises use price competition.Wire and cable enterprises have insufficient development potential and weak independent innovation ability.In the low-end wire and cable market with relatively low technology added value,it is quite common for them to sell at a low price.More than 40% of the enterprises in the industry have experienced adverse competition such as winning the bid below the cost price and malicious price reduction by peers.At the same time,the cost of wire and cable raw materials is rising,and most of the products produced in our country are low-end wire and cable products.Therefore,many wire and cable manufacturers are in a state of low profit or even loss.
Overall,the profitability of China's wire and cable manufacturing industry is lower than the average level of the machinery industry.From January to November 2011,the sales profit margin and return on total assets of wire and cable industry were 8.46% and 9.23% respectively,with a year-on-year growth of only 0.2% and 0.5% respectively.
3.There is a big gap between wire and cable industry and large international companies
Although China is a big producer of wires and cables,it is not a powerful producer.Although Baosheng Technology Innovation Co.,Ltd.,Jiangsu Shangshang cable group,far east Holding Group Co.,Ltd. and other leading enterprises in the industry have strong competitiveness in the market,more than 90% of China's wire and cable production enterprises are small and medium-sized enterprises,with serious overcapacity,low industrial concentration,weak independent innovation ability and homogenization of medium and low-end products The competition is serious,the overall level of product quality is not high,the industry is disorderly and excessive expansion,and the market competition is not standardized.
With the global wire and cable market becoming more and more mature,the development of wire and cable manufacturing industry is slowing down, the growth rate is small,the demand is declining,the cable enterprises are relatively overcapacity,the price is falling,the competition among enterprises is intensifying,and the main raw materials such as copper,aluminum,plastic are rising sharply,which makes the development of many cable enterprises difficult,and a large number of small and medium-sized enterprises or non professional wire and cable enterprises are facing difficulties Cable factories have withdrawn from the market in different ways.At present,the three largest cable manufacturers in the world are Prysmann,Nexans and Sumitomo division cables.French nexen,Italian presman,British BICC and other companies have invested a lot in product development.In recent years,the rapid economic growth of emerging countries such as Asia and the shift of world wire and cable production center to Asia have driven the rapid development of wire and cable industry in China,Vietnam,the Philippines and Egypt in the Middle East.At the same time,due to the unification of Europe,the manufacturing cost in central and Eastern Europe is relatively low,and the growth of wire and cable manufacturing is also quite rapid.
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