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Development of cable industry dilemma
- Sep 06, 2016 -

Despite China's wire and cable industry after several years of development and achieved great results, but still want to see the problems and deficiencies.

(A) the profit impact, benefits decline

Because of the increasingly fierce market competition at home and abroad, are positive for market share within the industry to seize, or even monopoly, which led to many enterprises can only lower the price to get a temporary existence, some companies even failed. Due to China's cable industry used the lowest bid, by enterprises in order to get orders to survive and, over and over again for margin compression, even without the bottom line and compete on price, not only their own interests, more disrupted the industry standard. Under the influence of various factors, resulting in decreased profits, and productive natural well, without going through painful transformation, will form a vicious circle, negative impact on the development of the industry.

(B) the limited research capacity, traditional structures behind

Due to by industry features by limited, research need large of funds input, but plus research of benefits returns cycle more long, investment risk larger, so most enterprise in for production Shi are is for imitation, and rarely for research, especially some scale smaller of enterprise unwilling to increased input in research personnel of hired Shang, unwilling to to himself do research and innovation, over time products quality on will appeared larger of problem and products type also compared single. Subject to the ability of scientific research is not strong, the industry's innovation and development would be difficult to achieve, which leads to unreasonable product mix, industry structure behind the problems and the status quo.