The wire and cable industry is a sub-industry of the machinery industry and an important part of the equipment manufacturing industry. It is called the "nerves" and "blood vessels" of urban and rural areas. In recent years, especially during the "Eleventh Five-Year Plan" period, China's wire and cable industry has developed rapidly. By the end of the "Eleventh Five-Year Plan" period, the output value of the national wire and cable industry has reached 500 billion yuan, becoming the second largest industry after the automobile industry. , Ranking first in the world. Anhui's wire and cable industry is also developing rapidly. As of the end of 2010, the output value of the province's wire and cable industry has exceeded 40 billion yuan.

　　The way of survival is unsustainable

　　 At present, China's wire and cable industry is still a trend of continued development, but there are also seven major problems, which seriously restrict the healthy and sustainable development of the industry.

　　 First, there is a surplus of mid-to-low-end products and a shortage of high-end products. At present, there are about tens of thousands of companies in China's wire and cable industry, but most of them are small in scale and low in product level. There are not many companies that can really win bids on national key projects. There are many wires and cables in some special and important fields that are lacking, so they can only rely on imports when needed.

　　 The second is repetitive production, repetitive construction is prominent, and production capacity is excessive. It should be said that wires and cables are relatively easy to produce products, and the threshold for market access is also low. In the past few years, in the transformation of urban and rural power grids, some enterprises "seized the opportunity" and rushed forward; even the electric power department rushed to build factories for production. In recent years, we have caught up with the accelerated pace of national infrastructure construction, and the real estate industry has continued to heat up. Many companies have emerged to see what others produce and produce what they produce, resulting in duplication of products and overcapacity.

　　 Third, the phenomenon of local protectionism and monopoly is serious, and the market lacks regulation. Due to the overcapacity of wire and cable and the fierce market competition, some local governments engage in local protection and require the use of local products; some power departments only use products produced by their own system companies or products of related households, and it is difficult for other companies to enter. Some regulatory agencies also only check foreign products, but do not check local and local products, causing unfair competition. At present, in the low-end wire and cable market with relatively low technical added value, price competition is quite common. Some "workshop enterprises" that do not have the necessary means such as production capacity, quality control and testing have been mixed in the industry, becoming the source of counterfeit, shoddy, shoddy, cutting corners, and shoddy cable products, and by driving down the sales price Such means disrupt the order of market competition and aggravate disorderly competition in the industry.

　　 Fourth, the prices of raw materials continue to rise. Due to fierce market competition, it is difficult for cable products to increase prices, and it is difficult for companies to survive. The main raw materials of the wire and cable industry are copper and aluminum. Although the prices of copper and aluminum have fluctuated in recent years, they have continued to rise; coupled with the increase in energy, transportation costs, and employment wages, the production costs of wires and cables have continued to rise. In order to maintain profitability and maintain production, some companies have to cut corners, lower product standards, and even produce counterfeit and shoddy products.

　　Fifth, the R&D investment is low and the innovation ability is insufficient. Some cable companies are eager for quick success, busy developing production and increasing output, and are not willing to invest capital and intelligence to develop new products, especially high-precision products; they also do not pay attention to improving product quality and creating famous brands. As a result, local cable companies lack independent intellectual property rights, key technologies are controlled by others, and the development of high-end technology and high-end products is slow. According to statistics, at present, only 30% of domestic cable brands have reached the level of acceptance and competition in the international market. Enterprises lack professional talents, graduates of relevant colleges and universities are reluctant to work in small and medium-sized cable companies, and most of the employees of private enterprises have not received relevant professional training. There is a serious shortage of technical innovation talents. Most companies lack the investment of special funds for related product development and innovation. All lead to the lack of independent technological innovation of the current domestic cable manufacturers, and the contradictions in the product structure are prominent.

　　 Sixth, winning the bid at a low price affects the sound development of the cable industry, and downstream companies occupy a large amount of funds from upstream companies. In the bidding activities, downstream customers win bids at low prices, and cable companies dump at low prices to survive, order national standard products for non-standard products.

　　The downstream customers in the industry are strong and large customers, occupying a large amount of capital of cable companies, which affects the normal operation of the entire industry.

　　 Seventh, there are so many names for cable access qualifications, and cable companies are overwhelmed. Wire and cable is a must-use product in various industries, and each industry has different requirements for cable performance or has its own focus. Therefore, various restrictions are placed on cable products to enter the network. Those who have not obtained the network access qualification are not allowed to use the network. Expend a lot of manpower, material resources and financial resources to deal with these various qualifications. For example, the most common cables must have a production license, low-voltage cables must have 3c compulsory certification, mining cables must have coal mine system safety certification, indoor communication cables must have network access licenses from the telecommunications bureau, and TV cables must have radio and television departments. Network access license, lan cable for computer network must have network access license, flame-retardant and fire-resistant cable must have record approval certificate from fire department and so on. What's more, the same product needs to have licenses from several user departments at the same time. Enterprises are exhausted to obtain various network access qualifications, and the marketing costs of their products have greatly increased.

　　It is urgent to change the development mode

　　The wire and cable industry is an important part of the equipment manufacturing industry. The national economy cannot be built without wires and cables. It will continue to develop during the "Twelfth Five-Year Plan" period. Currently, competition in the wire and cable industry is becoming increasingly fierce, and multinational companies have "eaten" a large share of the Chinese market. China's wire and cable industry must be in line with international standards, strengthen market competitiveness, and change the development mode of urgency.

　　First, it is necessary to adjust the product structure and vigorously develop high-end products. At present, there is a surplus of medium and low-end cable products in China, but the supply of high-end products is still insufficient. Local cable companies should vigorously develop high-end products, mainly special cables, high-voltage cables, ultra-high-voltage cables, and superconducting cables; develop special fields such as submarine cables and mining cables. To develop these cables, it is necessary to increase R&D investment and strengthen R&D capabilities. Enterprises should be willing to invest in this area. Enterprises have insufficient technical strength, so they can combine production, education and research, with the help of universities, colleges, and research institutes. Actively declare patents, protect intellectual property rights, and form their own product and technological advantages. It must be seen that having such an advantage, "fist" product, is much stronger than producing ordinary conventional products.

　　Second, insist on technological innovation and improve product level. With the progress of society, the production of products is towards energy saving