Electric wire and cable industry development status

In the 1990s, China’s electric wire and cable industry has achieved rapid development. To become the world’s second largest producer of wire and cable. The development of the industry has given rise to the following problems:
One. The number of wire and cable enterprises is large but the scale is small, and state-owned enterprises have lost their dominant position in the industry. When Shanghai Cable Research Institute conducted the industry survey in 1988, the state-owned enterprises designated by the state accounted for 48% of the total industry output value, but now the collective enterprises, joint-stock cooperative enterprises, foreign enterprises and emerging enterprises such as Hong Kong, Macao and Taiwan investment enterprises have taken the leading position in the industry.

Two. The product structure of the industry has changed. The proportion of wire and cable for winding and electrical equipment decreased, while the proportion of power cable and communication cable increased. This change is related to the rapid development of China’s electric power cables and communication industry, which is expected to continue in the future.

Three. Compared with foreign advanced enterprises, China’s wire and cable industry still lags far behind in terms of management level, technology level, technology content, product quality, etc., and equipment utilization ratio is low. The utilization rate of electric wire and cable equipment in China is about 30% on average, and 70% in advanced countries is normal.Four.Low labor productivity in the industry. Although China’s wire and cable industry has imported a large number of production equipment since the 1980s, which has greatly improved the labor productivity of the industry, the gap with foreign countries is still very large. For example, the per capita sales volume of China’s wire and cable industry is only 10%~20% of that of Japanese counterparts.

Five. Unreasonable product structure. In China’s wire and cable products, the proportion of low-tech products is too large, while the proportion of high-tech products is too small, and the product structure is unreasonable.
Six.Low input and output rate of materials. China’s enterprises in the production process, material consumption and waste is very serious, so that the input output rate is very low.
Seven. Backward management and long production cycle. The turnover of working capital in China’s electric wire and cable industry is less than two times, which is far lower than foreign countries’ 9-11 times.

Eight. The scientific research is weak, the enterprise innovation system establishment progress is slow. The innovation system is not yet in place.
Nine. Market awareness needs to be further enhanced. At present, factories in the industry, especially large and medium-sized state-owned enterprises, have only changed from production-oriented to sales-oriented, but have not yet achieved market-oriented. Large foreign enterprises have invested a great deal of manpower and material resources in market development to highlight the role of market orientation.