The entire electrical wire and cable manufacturing industry accounted for the largest total profit of one of the largest sub-sector. Electrical equipment industry in accordance with last year's main business income of a wire and cable industry accounts for about one quarter of China's electrical industry.
In the first half, wire and cable industry a significant growth slowdown in the phenomenon of negative growth lot of attention, but also into its electrical equipment industry has slowed down significantly or even a major factor in serious decline. Statistics show that wire and cable manufacturing industry in 2008 1 to May amounted to 8.51964 billion yuan in profits in 2009, 1 in May amounted to 8.43864 billion yuan in profits, compared with a decrease of 81 million yuan a year earlier, a decrease of 1%.
Wire and cable is a typical "material heavy and light" industry, the prices of raw materials are often of the total capital of 70% ~ 80%. According to analysis, wire and cable manufacturing industry severe disruption, in addition to shrinking overseas markets by the impact of sharp fluctuations in copper prices also bring great business problems.
With copper, for example, in 2008 1 ~ 6 months, the price of copper per ton in 62000 to 6.5 million the in 2009 from 1 to 6 months, has dropped to 26000 per tonne to 3.7 million, even lower about 50%. Drastically reduced the price of raw materials has led to raw materials such as wire and cable industry, a large proportion of product value capital has shrunk dramatically.
According to wire and cable industry experts predict that in 2009, 1 to 2 months, because the copper and aluminum prices caused by lower product value compared with a year earlier, about 30%, while the first half of this year, the magnitude of value is still shrinking level. In addition, according to wire and cable export statistics, in 2009 1 June exported 632,382 tons, up 3,965,353,500 U.S. dollars, even 6270 U.S. dollars / ton, just from the wire and cable products, the export unit price to see even more than a year earlier, down 9.4%.
Exposed to a number of topics
It should be noted that the wire and cable industry be affected by the financial crisis are not entirely extrinsic factors caused by the existence of many self-development industry, the subject can not be overlooked: First, large sector enterprises, small-scale industry, repeated investment, producing excess capacity. Low barriers to entry coupled with a huge market has attracted many enterprises to enter. At present, the number of enterprises of small and medium wire and cable to reach as many as 7000, the proliferation of the number of enterprises has brought the industry chaos. Second, the price war is still a number of small and medium enterprises to compete Baby, quality, and increased risk. Because of the lack of R & D capability, can only make a fuss about the low-end products. Some enterprises are able to provide ultra-low-cost products, is nothing more than make a fuss about the raw materials, the quality of their products can be imagined. 3 is the enterprise product development, produced in the areas of governance has yet to be progress in the core competitive power.
And the next, raw material price increases on the wire and cable businesses, even worse. At the same time, low-price competition is also inherited. Currently, many cable companies perverting the living. But things always have two sides, of course, low-price competition, raw material price increases for many businesses struggling, but also for wire and cable industry shuffling provides a unique opportunity.
Vision is still optimistic
China's introduction of stimulating domestic demand and promote steady and rapid economic growth in four-trillion-dollar scheme, wire and cable industry is undoubtedly big positive, many of the investment and construction of the project will be a rapid increase in the demand on the cable at the same time is bound to the promotion of construction, telecommunications, railways and other cable products the number of steady, rapid growth.
In addition, along with the urbanization process, power grid construction and transformation of the acceleration of wire and cable industry is bound to bring inside and a new round of vigorous development. On the whole, wire and cable industry is expected to pick up, vision can be expected.
In the market has shrunk, the price volatility of raw materials, under the dual pressures of the enterprise of science as soon as possible to develop coping strategies, and actively seek new breakthroughs. First of all, enterprises should size up the situation, grasp the opportunity, took advantage of the crisis and opportunity to engage in wire and cable product mix and marketing strategy adjustment; Secondly, further progress in product grades and standards, promote rational competition; Third, the intensity inside and wire and cable products brand promotion efforts; Fourth, progress in the centripetal force of employees, condensation force; fifth and further progress in wire and cable product differentiation and competition, has introduced cable marketable new products.
More importantly, companies want to brand the operation and governance, and service efforts, systematic, step by step the operation of the conduct of the brand and brand management. Cable companies have a year should be spent on the brand a certain energy, financial, human, whether in internal governance, is still marketing, all from the dealer governance, they are still directly to the market manipulation on the needs of enterprises brand and product brands, scientific, systematic and pragmatic process of implantation into the market operation, the cut cable competition in the market was in fact a place, and then step into the international market.
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