Huge Domestic Market Demand While Low Localization Standard
Date: Hits:1933
Along with the rapid development of wire & cable industry, the overall technical level of the industry is increased in a large scope and more enterprises are established. As for the expansion of intelligent power grid, data communication industry, city rail transit industry, automobile industry, shipbuilding industry and etc., the demand for wire & cable material and equipment will be increased rapidly and in the future, the industries relevant to wire & cable has huge market potential for development. Taking overview of China's wire and cable industry development in recent years, “bringing principle” is still existed, and it has not built a wire & cable standard in domestic. Under huge market demand, home-made production is at an inferior position, which restricts local wire & cable technology falling behind the foreign.
Wire & cable industry is the very important supporting industry of China’s economic construction, widely used in many areas and is the indispensable basic equipment for transferring power, information and manufacturing all kinds of motors, electronics, autos, machine tool and other equipment. Wire & cable industry provides basic equipment for power and communication industries, occupying 1/4 of the electrical equipment industry output value and is China’s second industry just after the car industry. In worldwide, China is the first wire & cable producer with its output value has exceeded the United States of America.
According to statistics, the demand in overhead cable and wire & cable has being increased all the time. As government put new requirement of energy conservation and environment protection, and also State Grid and South Power Grid Corp also raise same new requirement, the enterprises are required to adjust the production research and development.
Actually, China’s wire & cable enterprises still has gap with foreign enterprises. “Bringing principle” is still the commonly used method since China reform and open which means technology standard, main facilities and main raw materials are all imported from abroad. Because importing foreign production, we only can comply with foreign standard which make conflict between domestic and foreign standards. Besides, from overall wire & cable industry development level, there are many problems such as low industry concentration ratio, technical force dispersion, and weak enterprise technical force and so on. However, facing huge market demand, it’s difficult for cable enterprises to resist the temptation.
In China, except several large cable enterprises, more and more medium and small-sized enterprises are lingering for the survival target. Along with development of science and technology and the push of industrialization process, the standard for wire & cable is higher and higher. If cable enterprises can’t provide production meet the requirement and standard, they will be eliminated.
The information shows that, at present in China, the average R & D funding of wire & cable industry is less than 1% of sales volume and productivity of 90% enterprises in domestic is focus on low-end product. However, with high requirement for technological innovation, process innovation and material innovation, some cable enterprises have been increased the input of innovation.
With electrical network construction and reconstruction in cities and towns, the reconstruction of existing grid and construction of new power grid in rural areas will bring second and third scale cable enterprises good opportunity for development. Although at the moment cable production quality can satisfy the construction requirement, with the changing concept, the price will not be the only choice condition, and production quality will take important position. So, relevant enterprises still need technological innovation to support business expansion in the future.
In all kinds of new opportunities, medium and small-sized enterprises also need to look ahead, only grasp China’s huge market, improve research and development intensity and close to the domestic market standardization and put production quality the first place, can they stabilize their own position and brand market.
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