[China Aluminum Industry Network] China's wire and cable industry is currently in a period of rapid growth. Although prices of major raw materials such as copper, aluminum, and plastics have soared, many cable companies have been experiencing difficulties, and the power industry has experienced slower development, which has also had a negative impact on the cable industry. However, according to the forthcoming “Twelfth Five-Year Planâ€, in the next five years, the power, railway, rail transportation, energy, construction, communications, shipbuilding, and automobile industries will still maintain a large scale of investment, and will certainly give the cable industry Offering many rare opportunities, it will remain a promising sunrise industry. One of the eight hot spots plaguing the healthy development of the cable industry is that raw material prices fluctuate, and companies are trapped by fluctuations in copper and aluminum prices. In recent years, due to the soaring prices of the world copper ingot market, domestic cable companies have suffered from the plunge of raw materials. After the outbreak of the financial crisis, the prices of raw materials such as copper and aluminum plummeted, which made it impossible for companies to make timely, objective, and accurate judgments. As a result, cable companies were trapped in the turbulence of raw material prices, affecting the healthy development of cable companies. Second, the entry threshold of the industry is low, and vicious competition weighs on product quality. The current cable industry is developing rapidly, and the access threshold for the cable industry is low, especially during the period of large-scale transformation of urban and rural power grids and the current efforts of local governments to pursue GDP, and the lack of supervision by the relevant national authorities, resulting in the There are more and more small wire and cable manufacturers. At present, there are nearly 10,000 cable manufacturers in the country. Most of these products are not on scale. Their products are mainly concentrated in low-end, low-tech cable products. The cable industry has serious overcapacity, insufficient effective supply, prominent structural conflicts, low input and output, and weak technological innovation. These factors are serious. Obstructs the development of the cable industry. Third, the disorderly competition in the cable market is serious. At present, in the low-end wire and cable market with relatively low technological added value, the situation of price reduction and competition is quite common. Some “workshop companies†that do not have the necessary means such as production capacity, quality control, and testing can be incorporated into the industry and become the source of counterfeiting, shoddy work, cutting corners, shoddy work, and shoddy products, and relying on lower sales prices. Such means disrupt the order of market competition and aggravate the disorderly competition in the industry. Fourth, there is a serious shortage of independent innovation and equipment renewal and short-term business strategies. At present, a considerable number of cable manufacturers in China are still engaged in workshop-style production. The scale of production is small, the proportion of wire and cable products is relatively large at the low-end, the content of technology is low, the competitiveness of high-end products is weak, and marketing is even more provocative. There is a long-term business strategy. The lack of professional personnel in the enterprise, graduates of related institutions are reluctant to enter the work of small and medium-sized cable companies, most of the private enterprise employees do not have related professional training, and there is a serious lack of technical innovation talents. Most enterprises lack the investment of special funds for product development and innovation. All of these have led to the lack of independent technological innovation in the current domestic cable manufacturers and the conspicuous contradictions in the product structure. Fifth, the upstream product quality issues have limited the development of the cable industry. At present, the upper reaches of the domestic cable industry, such as cable equipment manufacturing companies, cable raw material production companies, lack of an authoritative organization for effective supervision and management, the industry status is relatively disorderly, chaotic, the quality of the provided products itself does not meet the standards, or Compared with foreign companies, the gap between products is obvious, and newly-entry cable companies desperately pursue low-cost expansion. Most companies do not purchase expensive cable equipment abroad. For example, in the domestic one-step natural cross-linked polyethylene insulation material, there is almost no qualified supplier, resulting in unstable quality of the low-voltage cross-linked polyethylene cable, and the harm degree is self-evident. Sixth, downstream companies occupy a large amount of funds from upstream enterprises. The downstream customers of the industry are strong and large customers, and they have taken up a large amount of funds from cable companies, which has affected the normal operation of the entire industry. Seventh, low-cost bids affect the sound development of the cable industry. In the tendering and bidding activities, downstream customers use low-price bids, cable companies to survive, inducing large and small enterprises in the industry to dump at a low price, ordering the national standard goods, supplying non-standard products, and even the better and bigger companies in the industry cannot Resistances, such as the Beijing Olympics project, CCTV, and Wuhan Tianhe Airport, have encountered problems. Eighth, there are numerous cable entry qualifications and cable companies are exhausted. Wire and cable are the products that must be used in various industries. However, various industries have different requirements for cable performance or have different priorities. Therefore, various restrictions are imposed on the cable product access network. Those who are not qualified for network access must not be allowed to use the network, resulting in annual cable manufacturing enterprises. It takes a lot of manpower, material resources, and financial resources to deal with these numerous accreditations. For example, a more general cable requires a production license, a low voltage cable must have a 3C compulsory certification, a mining cable must have a safety certification for a coal mine system, an indoor communication cable must have a network license for a telecommunications bureau, and a television cable must have a broadcast television department. Network access licenses, computer network LAN cable must have a network access license, fire-retardant fire-resistant cables must have the fire department registration certification, and so on. What's more, the same product needs to have several user department licenses at the same time. In this way, the marketing cost of the product is greatly increased. With so many certifications and approvals, will it be possible to limit the inflow of counterfeit wire and cable? Facts have proved that these seemingly strict restrictions actually provide an umbrella for those who produce counterfeit and shoddy products. The time has come to 2011, China's "Twelfth Five-Year Plan" began to implement, how to develop China's cable industry?