2010 CCTV half an hour of the economy broadcast a program on China's wire and cable industry overcapacity and vicious competition for the first time the status of a comprehensive in-depth coverage of the survey to the whole industry sounded the alarm, in the whole society caused Strongly reacted. The industry had to face its own crisis of confidence.
According to the statistics department and industry association data, poor quality cable on the safety of construction there is a huge threat, the current national fire accident, there are 2/3 and cable quality problems related to the loss can not be estimated.
Wire and cable products are widely used in various fields of the national economy, supporting the various industries, national defense construction and major construction projects, is the basic operation of modern economic and social protection, but also people indispensable products in daily life. The wire and cable industry is the second largest industry in the machinery industry after the automobile industry.
On the surface, the wire and cable industry's contribution to the national economy continues to increase, but the development of its industry has emerged a serious crisis, manifested in:
Industry concentration is not enough According to the National Bureau of Statistics 2009 statistics, the cable industry state-owned and above-scale enterprises a total of 4653, 98.8% of small and medium enterprises, large enterprises only 19, 19 large enterprises accounted for only 11.7% market share, while the United States 3 major production Accounting for 54%, Japan accounted for 86% of the seven, the United Kingdom accounted for 95% of the 12. Although China is a cable manufacturing power, but no one can really be called the industry boss, but did not form the scale of the industrial chain, there is no ringing world brands and multinational groups, it is difficult to fully participate in global competition.
Excess capacity expansion. Cable industry overcapacity in a few years ago has reached a very serious level. After the financial crisis in 2008, the nightmare of capacity expansion began, and all levels of government, in the name of "expanding domestic demand and maintaining growth", to invest in new products or develop high-end technology products, invested heavily in new factories and cables Industry has formed a new round of investment boom.
Lack of technological innovation. China's cable industry, the average investment in R & D spending less than 1% of sales. Domestic cable companies more than 90% of the production capacity concentrated in the low-end products. In the cable industry chain, high value-added products rarely involved in the enterprise.
Profits are extremely meager. As the domestic cable industry low-end competition to the degree of white-hot, according to industry statistics, in 2009 China's cable industry gross margin was only 12.84%. Minus the cost of manufacturing, personnel costs, financial costs, many companies only 2-3% of net profit, a large number of enterprises at the edge of the loss.
Non-standard tender for poor quality products to participate in the competition opportunities. In the cable tender, because the bid is very standard, vicious competition and unfair bidding situation is more serious, many do not have qualified enterprises to rely on the relationship to participate in the bidding. Non-standard bidding behavior is also hidden in the corruption of the factors, some of the bidding enterprises to collect the bid fee to seek benefits, to participate in the bidding of enterprises without restrictions, nor conduct field visits, blind pursuit of low-cost practices led to poor product exclusion Regular product situation.
Access to the threshold of a small number of shell enterprises. Cable industry access threshold is very low, so there have been many production of small workshops, a usually only one or two equipment, the production of one or two specifications of the product, and these small businesses in a place is often a star, Baotuan heating, production Varieties complement each other. They do not have a sound management team, technical staff, quality control system, and even no testing equipment. However, they have a brand, a production license, a variety of certification and award certificates, and the registered capital is not low. They are usually more than a dozen brothers to bid together, these companies are easy to string standard standard, an order to take back on the partnership to do, for the benefit of sharing.
In summary, the cable industry in the situation of internal and external difficulties. Leading to more disorderly market competition, the quality of the situation is worrying. In recent years, the relevant government departments to take a variety of measures to regulate the wire and cable market, but still can not contain the momentum of fake and shoddy. Many cable manufacturers want to do self-discipline, do not compete at low prices, in strict accordance with national standards to do, but the face of vicious competition has come to the situation is not fruit.
According to the statistics department and industry association data, poor quality cable on the safety of construction there is a huge threat, the current national fire accident, there are 2/3 and cable quality problems related to the loss can not be estimated.
Wire and cable products are widely used in various fields of the national economy, supporting the various industries, national defense construction and major construction projects, is the basic operation of modern economic and social protection, but also people indispensable products in daily life. The wire and cable industry is the second largest industry in the machinery industry after the automobile industry.
On the surface, the wire and cable industry's contribution to the national economy continues to increase, but the development of its industry has emerged a serious crisis, manifested in:
Industry concentration is not enough According to the National Bureau of Statistics 2009 statistics, the cable industry state-owned and above-scale enterprises a total of 4653, 98.8% of small and medium enterprises, large enterprises only 19, 19 large enterprises accounted for only 11.7% market share, while the United States 3 major production Accounting for 54%, Japan accounted for 86% of the seven, the United Kingdom accounted for 95% of the 12. Although China is a cable manufacturing power, but no one can really be called the industry boss, but did not form the scale of the industrial chain, there is no ringing world brands and multinational groups, it is difficult to fully participate in global competition.
Excess capacity expansion. Cable industry overcapacity in a few years ago has reached a very serious level. After the financial crisis in 2008, the nightmare of capacity expansion began, and all levels of government, in the name of "expanding domestic demand and maintaining growth", to invest in new products or develop high-end technology products, invested heavily in new factories and cables Industry has formed a new round of investment boom.
Lack of technological innovation. China's cable industry, the average investment in R & D spending less than 1% of sales. Domestic cable companies more than 90% of the production capacity concentrated in the low-end products. In the cable industry chain, high value-added products rarely involved in the enterprise.
Profits are extremely meager. As the domestic cable industry low-end competition to the degree of white-hot, according to industry statistics, in 2009 China's cable industry gross margin was only 12.84%. Minus the cost of manufacturing, personnel costs, financial costs, many companies only 2-3% of net profit, a large number of enterprises at the edge of the loss.
Non-standard tender for poor quality products to participate in the competition opportunities. In the cable tender, because the bid is very standard, vicious competition and unfair bidding situation is more serious, many do not have qualified enterprises to rely on the relationship to participate in the bidding. Non-standard bidding behavior is also hidden in the corruption of the factors, some of the bidding enterprises to collect the bid fee to seek benefits, to participate in the bidding of enterprises without restrictions, nor conduct field visits, blind pursuit of low-cost practices led to poor product exclusion Regular product situation.
Access to the threshold of a small number of shell enterprises. Cable industry access threshold is very low, so there have been many production of small workshops, a usually only one or two equipment, the production of one or two specifications of the product, and these small businesses in a place is often a star, Baotuan heating, production Varieties complement each other. They do not have a sound management team, technical staff, quality control system, and even no testing equipment. However, they have a brand, a production license, a variety of certification and award certificates, and the registered capital is not low. They are usually more than a dozen brothers to bid together, these companies are easy to string standard standard, an order to take back on the partnership to do, for the benefit of sharing.
In summary, the cable industry in the situation of internal and external difficulties. Leading to more disorderly market competition, the quality of the situation is worrying. In recent years, the relevant government departments to take a variety of measures to regulate the wire and cable market, but still can not contain the momentum of fake and shoddy. Many cable manufacturers want to do self-discipline, do not compete at low prices, in strict accordance with national standards to do, but the face of vicious competition has come to the situation is not fruit.
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