The Importance of Fire Prevention for Wires and Cables in Buildings

The domestic cable technology upgrade and product innovation capabilities are insufficient, and some production enterprises often only focus on short-term gains, resulting in the loss of the high-end market. It is worrying that special cables for ships, aerospace and other industries are basically monopolized by foreign countries, and there is a serious lack of technological investment. Domestic production mainly focuses on producing low tech ordinary cable products.

According to expert analysis, even though the demand in the cable market has opened up, there are very few local companies that can support such a large market. Except for a few slightly larger enterprises, almost all domestic cable companies adopt a low-quality and small brand strategy, and can only compete in the mid to low end market for a long time. They are often powerless for high-end market projects.

Due to the low equipment level of small and medium-sized cable production enterprises, it is difficult for domestic special cable production enterprises to form core competitiveness and resist market impacts. In recent years, the cable industry has increasingly called for a shift from low to high in the market, especially this year, as the profit margin of the cable industry continues to decrease and production costs rise, resulting in meager processing costs.

Low concentration is the root cause of vicious competition and overcapacity in the cable industry. At present, the top ten cable production enterprises in China only occupy 7% to 10% of the domestic market share, with the largest cable enterprise accounting for only 1% to 2.5% of the market share. However, the concentration of cable enterprises in European and American countries has reached over 80%, and low concentration has become an undeniable obstacle to the development of the domestic cable industry. Some experts believe that in the face of low concentration, only by increasing the integration of industry resources and striving to expand the market share of enterprises can the stability of the domestic wire and cable industry be increased. The manufacturing scale of China's wire and cable industry is rapidly increasing, developing extensively, and expanding irrationally. However, technological progress and product upgrades are slow, and there is a serious problem of redundant construction, resulting in severe overcapacity in the entire industry. Most enterprises are scrambling and fighting in the middle and low-end markets, while high-end markets and brands are lost. Counterfeit and inferior products are rampant, and profits are meager.

The reason why cable manufacturers in our country have meager profits is that the products in our country's wire and cable industry are mainly mid to low end, which cannot reach the product research and development and process control level of foreign cable oligarchs such as Prysmian in Germany, Nexen in France, and Koga in Japan.

The insufficient R&D and production capacity of high-end products in China has led to serious problems of following the trend in the industry, and the lack of unified planning has also caused serious overcapacity. At present, the development of China's wire and cable industry is a continuous extensive production and operation model. The vast majority of small and medium-sized enterprises attach more importance to short-term economic effects, and very few enterprises are willing to invest manpower, material resources, and funds in the research and development and production of high-end products, resulting in a vicious cycle of competition only in the mid to low end market.

From the layout of foreign developed cable production enterprises such as General Cable from the United States, Nexen from France, and LS Group from South Korea entering China, their common goal is to compete for the special cable market and occupy the high-end market. From this, it can be seen that developing special cables is a powerful means of "abandoning low and focusing on high".

So where should domestic cable companies start to enter the high-end market? This question has also left some cable production companies confused. In fact, from the perspective of the expanding scale of rail transit industry, shipbuilding, aerospace industry, new energy industry, marine oil and gas engineering projects, and the sharp increase in market demand, engaging in the research and production of special cables is a convenient path.

According to data, the current market sales of special cables account for about 30% of the total sales of the domestic cable market. Roughly estimated, the annual sales of special cable products in China are about 40 billion yuan. And with the large-scale construction in various industries, the demand for special cables will be even greater.

Of course, although the threshold for special cables is higher than that for low-end cables, as a large cable production enterprise with research and development capabilities, it has sufficient ability and funds to increase research and innovation efforts in special cables, thus taking the opportunity to change the low concentration of the domestic cable industry.

If domestic cable production enterprises cannot work hard and unite in management, products, technology, and market to fight against foreign giants, then there are only two possibilities waiting for Chinese wire and cable production enterprises. One possibility is to be defeated and go bankrupt; Another possibility is to change ownership overnight and be acquired or merged by foreign giants. Domestic cable companies can only achieve new breakthroughs in the global market competition of China's wire and cable industry by increasing research and development efforts, establishing local brands, pursuing differentiated competition, and integrating industry resources, "said a cable company leader with emotion.