Shangpu Consulting: Problems in the Development of Wire and Cable Industry

With the rapid development of China's economy and the further acceleration of the process of industrialization and urbanization. The wire and cable industry has developed rapidly as an important basic industry for the national economy, and it has become the second largest industry for relay car manufacturing in the electrical and electronics industry. In addition, the domestic wire and cable industry has a significant impact on the global wire and cable manufacturing industry. Analysts in the electronics industry of Shangpu Consulting pointed out that at present, compared with the important position of the wire and cable industry, there is still a big gap between the domestic wire and cable industry. The overall level of domestic wire and cable product quality is still relatively low, and the qualified rate of product quality inspection has been low; at the same time, the overall capacity of wire and cable is seriously excessive, the industry concentration of wire and cable is relatively low, and the ability of independent innovation of the enterprise is relatively weak. The homogenization competition also has insufficient stamina; the wire and cable industry is affected by the disorderly over-expansion, and the market competition is very unregulated. These problems seriously restrict the healthy and rapid development of the wire and cable industry.

It is worth noting that the dependence of the wire and cable industry on capital is relatively large. The shortage of funds and the tight funding chain have become an important factor restricting the development of small and medium cable companies. With the fierce competition in the wire and cable market, mergers and acquisitions and capital integration of cable companies have become an inevitable trend.

According to the "2011-2016 China Wire & Cable, Cable & Electric Equipment Manufacturing Market Analysis & Development Prospects Study Report" issued by Champ Consulting, it shows that as the development of the wire and cable industry gradually matures, the industry competition will become even fiercer, with wire and cable manufacturing. The development of the industry has slowed down, with little growth. With the changes in the external environment and the impact of internal competition, the world wire and cable industry has entered the pattern of several giant monopoly competition only concentrated resources, specializing in the main industry, in order to make the cable industry bigger and stronger. The merger and reorganization of wire and cable companies will inevitably lead to the reintegration of products, talents, funds, and equipment within the industry and between companies.