China's wire and cable development opportunities and challenges are coexisting. There are positive factors such as the implementation of the new policy in 13th Five-Year, the expanding space of industrial development, Internet plus demand, and the difficulties faced by enterprises. "Made in China 2025" and "industry 4.0" will become new growth highlights of wire and cable industry. New fashion terms contain too many opportunities and challenges. This is a good opportunity for China's industry to catch up, and also a good opportunity for China's wire and cable enterprises to transform and upgrade.
First, the deep integration of "Internet plus" and wire and cable industry: Transformation of enterprise concept and mode
NPC and CPPCC Internet plus policy plan was clearly approved in 2015, and the Internet plus was like a powerful hurricane, which swept almost all walks of life overnight.
The Internet plus Internet plus policy is very popular in all industries. If Internet + is put into our wire and cable industry, Internet plus cable will be the beneficiaries of suppliers and purchasers for the wire and cable industry. Internet plus makes information more circulated and resources more fully used. Internet plus effectively integrates engineering projects, cable suppliers and cable purchasers, and broadens sales channels to help enterprises upgrade and upgrade. Last year, when tmall's "double 11" set a record of 91.2 billion, the online sales of wires and cables also broke through a record high. " In fact, Internet plus is not simply gluing the Internet to traditional industries. This is not a "physical reaction", but rather a "chemical reaction". It is a reorganization of factors. It is a process in which the Internet transforms the production mode, economic mode and industrial structure of traditional industries
The first mock exam is the 4 industry, which is an important part of the Internet plus. Internet technology reduces the information asymmetry between production and marketing, accelerates the mutual relationship and feedback between them, and thus leads to the consumer driven business mode. Industrial 4 is the key link to achieve this mode. Internet plus Internet plus manufacturing industry, which represents the intelligent production of the Internet + manufacturing industry, has bred a large number of new business models. Actively seeking the development mode and way under the "Internet +" mode has become the priority among priorities in the wire and cable industry enterprises, adapting to the new development mode and improving the quality and efficiency of the products. 4 Only by increasing technology investment and developing high-quality wire and cable products with environmental protection and energy conservation can we seize the golden opportunity of development and promote the healthy development of wire and cable enterprises. " Under the new normal, facing the new economic opportunities, wire and cable enterprises need to change their minds, take the Internet plus, share the economy, big data, cloud computing and other new technology means as an opportunity to adjust their concepts, actively explore and accumulate paving, seize the commanding heights, and cultivate the core competitiveness of the future enterprises.
2、 "Made in China 2025" transformation and upgrading of traditional cable industry
"Made in China 2025" is a national strategic plan to strengthen high-end manufacturing industry announced by the State Council on May 8, 2015, and is the first ten-year action program in the three ten-year strategy of building China into a manufacturing power. It is a long-term strategic plan based on the overall international and domestic economic and social development and industrial change trend. It not only promotes the transformation and upgrading and healthy and stable development of traditional manufacturing industry, but also realizes the high-end cross-border development in response to the development of new technology revolution.
China's manufacturing industry is generally large but not strong. Many of its products have the largest sales volume in the world, but most of them are at the middle and low end of the industrial chain, lacking added value and brand awareness. The trillion yuan annual output value of China's wire and cable industry is in line with the image of China as a big manufacturing country, but only a few of thousands of cable enterprises can compete with foreign giants. China's cable enterprises should make intensive efforts in their own fields, create more and make less fake products, pursue quality and stop shoddy products, regard quality as the foundation of enterprises, and strengthen the brand operation of products at the same time. Only in this way can we get rid of the low-end, low-quality and low-cost image of Chinese products in the world and promote the leap to the high-end of global industrial value.
For China's cable industry, overcapacity is a necessary period in the development process. In this period, looking for a breakthrough in the market is a major issue for all cable companies. In the tuyere of "made in China 2025", the Chinese government will focus on promoting 10 key support areas including new materials, and strive to achieve breakthrough development. This will be a huge opportunity for the vast majority of wire and cable manufacturing enterprises. Promote the transformation of traditional cable manufacturing industry to the direction of energy conservation and environmental protection, and vigorously develop new energy industries such as wind power and optoelectronics.
3、 The industry is highly dispersed, and there are few high-end products. The market competition of middle and low-end products is fierce, and the demand for special cables is strong
At present, there are many manufacturers in the domestic wire and cable industry, and the market concentration is low. According to the data of the National Bureau of statistics, at the end of the eleventh five year plan, there were more than 9000 large and small enterprises in China's wire and cable industry, including more than 2000 enterprises above designated size. Far East cable market share of the largest domestic wire and cable enterprise is less than 2%.
In terms of product structure, the R & D capacity of high-end products is insufficient, and the capacity of low-end products is surplus. The influx of a large number of capital into the low-end wire and cable market directly leads to overcapacity in the field of low-voltage wire and cable, and the market is obviously oversupplied; the homogenization trend of domestic wire and cable products is obvious, and the irrational price competition has extended from the low-end market to the terminal market. Under the pressure of overcapacity and increasing competition in the domestic market, the low-end wire and cable market has been in a fully competitive situation with low profit margin. High voltage, ultra-high voltage wires and cables and other high-end products have high technology content, complex production process and high technical barriers. At present, the domestic high-voltage and ultra-high voltage wire and cable market is mainly monopolized by a few foreign-funded enterprises, joint ventures and domestic leading enterprises in the wire and cable industry.
On the other hand, as a high-end wire and cable field with high technical barriers, the market competition of special cables is slowing down. With its safety, environmental protection and many other characteristics, special cable has become a national key promotion products, strong market demand, high industry profit margin.
4、 Market demand and capacity
For a long time, China's electric power industry has paid more attention to power generation than power supply. In recent years, with the rapid development of the national economy, the contradiction of lagging power grid planning and construction is further intensified. Although the country has invested trillions in the construction and transformation of rural and urban power grids over the years, the per capita electricity consumption is still more than seven times behind that of Japan, the United States and other developed countries, and the economically developed areas have the phenomenon of "electricity shortage" every year. With the increasing expansion of power demand in various industries and fields, power consumption is rising rapidly.
With the rapid growth of electricity demand in the whole society, the total installed capacity of generators in China is also increasing. It is urgent to build a large-scale and efficient transmission network. At present, the national economy's demand for large-scale power transmission and supply has pushed 220kV, 110kV and other high-voltage transmission lines into power grid construction and transformation. In the early years of the 12th Five Year Plan period, more than 35000 kilometers of 220kV and above lines have been added, and 500kV (750kV) UHV and UHV cables will also enter the transmission lines in the near future.
Industry development prospects
1. High end products have broad prospects
The lack of R & D ability of high-end products such as high-voltage and ultra-high voltage wires and cables is a common phenomenon in China's wire and cable industry. At present, China's high-voltage, ultra-high voltage cables, supporting connectors and other accessories, as well as related insulating materials, nuclear power station cables and other major products rely on imports. It has become an important factor to hinder the development of high-end wire and cable products that the accessories of domestic high-voltage and ultra-high-voltage cables are not matched and cannot be supplied in a complete set. With the sustained and stable development of China's national economy, the national demand for high-end products continues to increase. It is urgent for local wire and cable manufacturers to accelerate and improve the research and development of high-end products.
2. Strong market demand for special cables
Special cables can be roughly divided into four categories: high temperature resistant wires and cables, functional wires and cables, new green insulation and environmental protection wires and cables, and wires and cables with special use and structure. Compared with the large quantity and wide range of ordinary wires and cables, the special cables have the characteristics of high technical content, strict use conditions, small batch and high added value.
In recent years, the domestic building fire rating has been improved, and the special fire cables are facing a good market environment. Among them, mineral insulated cable with its good fire resistance, waterproof, high temperature resistance, corrosion resistance, radiation resistance, explosion-proof, overload flow, high mechanical strength and good grounding performance, has become a special cable with rapid growth in demand in recent years. With the continuous improvement of national safety requirements for various projects, mineral insulated cable has been listed as a national key promotion product with broad market prospects.
Since 2006, high-rise buildings and entertainment places in Shanghai, Beijing, Dalian and other large cities have been experimenting with the use of fire-resistant cables. The domestic market demand for fire-resistant cables will maintain a rapid growth. According to the prediction of Ping An Securities Research Report, the domestic market demand for this product will increase at an average annual rate of 15-20% before 2015. With a growth rate of 15%, it is estimated that the market of mineral insulated cables will reach 7.7 billion yuan by 2015.
China's manufacturing industry is generally large but not strong. Many of its products have the largest sales volume in the world, but most of them are at the middle and low end of the industrial chain, lacking added value and brand awareness. The trillion yuan annual output value of China's wire and cable industry is in line with the image of China as a big manufacturing country, but only a few of thousands of cable enterprises can compete with foreign giants. China's cable enterprises should make intensive efforts in their own fields, create more and make less fake products, pursue quality and stop shoddy products, regard quality as the foundation of enterprises, and strengthen the brand operation of products at the same time. Only in this way can we get rid of the low-end, low-quality and low-cost image of Chinese products in the world and promote the leap to the high-end of global industrial value.
