China's cable industry is breeding a new **

The current financial crisis and the slowdown in China's economic growth have led to continuous declines in orders for wire and cable manufacturers. Some companies have been trapped in the production stoppages and semi-finished production dilemmas, and even face the test of life and death.

The tide of work stoppages, the elimination of the acceleration, is a blessing or a curse for the wire and cable industry?

The author believes that behind the danger is the opportunity. The greater the risk, the more opportunities there are.

Some people say that this economic "cold wave" will beat the 2008 financial crisis. This means that the wire and cable industry is currently facing a tremendous transformation in the predicament: the industrial transformation and upgrading, from big to strong, the market from disorder to order, from non-standard to standardized, accelerating integration between enterprises, the survival of the fittest.

All indications indicate that an extremely profound industrial revolution is being born.

First, the cable industry is entering the best period of transformation and upgrading. The market situation under the financial crisis this year has brought tremendous pressure and impetus to the transformation and upgrading of wire and cable manufacturers, forcing companies to enhance the sense of crisis and urgency of transformation and upgrading. This is the situation.

At the same time, the Chinese economy is undergoing a transitional period. Despite the recent intensive economic stimulus measures introduced by the government departments, the low growth trend will continue. With limited market demand, it is difficult to feed nearly 10,000 domestic cable “junkies”. Therefore, it is unavoidable for the industry to accelerate the reshuffle, and transformation and upgrading are the general trend. Government departments advocate and promote transformation and upgrading. They will provide great support in terms of policies and spiritual materials for corporate innovation and product upgrading. Cable companies should seize the opportunity to accelerate the transformation and upgrading, and seize the cable technology and high-end products. High ground. Who starts early in the transformation and upgrading process, runs fast and wins, and whoever is the winner of the future market.

Second, the cable industry market standard is at that time. Under the economic crisis, it is more necessary to regulate the market. The hope of the whole industry is revitalizing, and the premise of revitalization is the norm. What is gratifying is that since the National Conference on Quality Improvement of Wire and Cable Products on November 1st last year, the market rectification of the wire and cable industry has been markedly accelerated: a group of illegal and infringing companies have been investigated and even gone out; the relevant project construction units have been or are Change the "lowest price bid" tendering rules; "non-standard" and other unspoken rules have been referred to, and are being spurned by the market.

Although China's cable market goes from disorder to order, from non-standard to standardized, from unspoken rules to clear rules, there is still a long way to go, but the general direction of the market's orderly and normative direction cannot be reversed. For this reason, cable companies, especially those above designated size, should take the initiative to fulfill their main responsibilities for market regulation and jointly create a fair and fair, orderly, honest and harmonious market competition environment. This is not only defending the interests of the country and the industry, but also protecting the interests of our own companies.

Third, the curtain for accelerated integration of the wire and cable industry has opened. For cable companies, every economic crisis is a process of survival of the fittest. Ordinary militias are either incorporated into the right track or disbanded on their own; all arms of the regular trajectory are integrated into a powerful “synthetic army” or “combined fleet” and possess superior combat effectiveness. This round of economic crisis has provided better development space for scale enterprises and brand enterprises.

It is understood that currently several leading companies and listed companies within the wire and cable industry are in full swing looking for partners in the country, or use mutual product structure or geographical differences, through technology, products, markets, capital, etc. Multi-party cooperation, forming a strategic development alliance, achieving complementary advantages and strong alliances; or achieving strategic expansion through large-scale mergers and acquisitions. These moves are very time-sensitive and specimen values.

It can be foreseen that the birth of a number of "cable carriers" in the next few years will completely change the status of the "big but not strong" and "promiscuous" Chinese cable industry. The dream of China becoming a world cable powerhouse is not far off.