First, from the two aspects of fiber optic cable and power cable to see the development prospect of wire and cable industry

Since the invention and use of optical fiber cables in 1970s and in the world, the development and change of optical fiber cables have been rapid. Nowadays, 'light enters and copper recedes' and optical fiber cables have gradually replaced communication cables. From the perspective of production scale, the number of enterprises producing optical fiber and cable has grown from 200 or 300 in the past to more than 20 in the current market, in the past, the development state of disorderly competition has become a state of orderly competition with high industrial concentration. The output of the top five optical fiber and cable enterprises accounts for more than 80% of the total output of the industry. From the perspective of industrial chain, China's optical fiber and cable enterprises have been able to produce optical cables from only optical cables to optical fibers later, and now there are seven or eight enterprises that can produce light sticks, thus greatly increasing the industrial concentration. The optical fiber and cable industry has experienced a process of development from the great development in the early 1990s s to the subsequent disorderly competition and to the improvement of industrial concentration today. We also extended this process to discuss the wire and cable industry. The output value of the wire and cable industry is huge, there are thousands of enterprises in the industry, and the industrial concentration is not very high. Judging from the 11th and 12th five-year plans, with the construction of the power grid, the expansion of power consumption performance and the utilization of new energy, the market prospect of the wire and cable industry is still relatively good. Although there are many unsatisfactory aspects in our industry, such as disorderly competition in enterprise development, I think these are problems in the development process and relative from the perspective of the law of industry development, it can be solved in the process of development, which is the same as the process of fiber optic cable development from disorderly competition to orderly competition. Judging from the development prospect of power cables, with the advent of the post-financial crisis era and the continuous innovation of China's electrical appliance industry, it is in the planning year of the 12th Five-Year Plan, personally, I think the construction of intelligent network in our country may be much faster than expected. The construction of smart grid, 'three networks in one' and 'four networks in one' have brought new opportunities to power cables, there will be a lot of room for market demand in terms of product structure and quantity. Therefore, the wire and cable industry is a promising industry. Second, the enterprise's own self-improvement in the current environment, the wire and cable industry is promising, but the industry's corporate profit margin is generally only about 5%. The National recognition conditions for high-tech enterprises have such standards: the total research and development expenses of enterprises with sales revenue of 5,000 yuan to 2 billion yuan in the latest year account for not less than 4% of the sales revenue; In the past year, the proportion of enterprises with sales revenue of more than 3% yuan is not less. This standard has pressure on many wire and cable enterprises, especially private enterprises, and enterprises will inevitably hesitate to invest in research and development. Even so, enterprises can still improve themselves according to their own characteristics. There is a saying that 'small enterprises look at the boss, medium-sized enterprises look at the system, and large enterprises look at the culture', take Fuchunjiang group as an example, we should not only 'insist that Qingshan is not relaxed' based on the industry, without blindly following the trend; It not only maintains a certain scale of development, but also does not blindly expand the scale. I think the development of the industry will eventually be orderly, so we are ready to fight a protracted war in the aspects of cultural development, product structure, brand building, fine management, etc, calm down first, then stabilize and wait for the final improvement of its competitiveness.
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