The wire and cable industry, as a traditional manufacturing industry, should actively create opportunities and seek ways out.

The wire and cable industry, as a traditional manufacturing industry, is facing tough times. Although China's rapid economic development and accelerated urban construction over the years have presented good development opportunities for the wire and cable industry, this has also led to a serious overcapacity in the industry. Overcapacity is concentrated in the low- and mid-range market, reflecting intense competition and severely declining profit margins in this segment of the domestic wire and cable industry. Coupled with the current slowdown in China's economic growth and the cooling of traditional manufacturing, the development of the wire and cable industry will inevitably rely on transformation and upgrading, or "innovation."
Product Innovation
Innovation is the driving force behind enterprise development. Without innovation, enterprises lack core competitiveness, their profit models become outdated, and they are inevitably drawn into a quagmire of malicious competition. When it comes to innovation, the first thing that comes to mind is product innovation. The recent demand for special cables clearly illustrates the significant difference between high-end and low-end products. It is understood that the demand for special cables in China is currently increasing by nearly 20% per year. Particularly in recent years, with the rapid development of the national economy, the demand for special cables has increased sharply. The demand for special cables in industries such as shipbuilding, railways, aviation, aerospace, petroleum, chemicals, metallurgy, and nuclear power is increasing year by year.
The expansion of overall market capacity has brought good development opportunities for special cables: oil exploration drilling platforms require more than 15,000 kilometers annually; high-speed rail requires more than 37,300 kilometers... and special cables such as railway signaling cables, marine cables, automotive wires, mining cables, and aircraft cables are growing at a rate of tens of thousands of kilometers per year.
The national advocacy of energy conservation, emission reduction, and green development has also provided new opportunities for special cables. For example, the national smart grid construction, from planning and demonstration to phased implementation, relies on special cables at every step. The large-scale transformation of urban and rural power grids, the application of high-voltage and ultra-high-voltage cables, the construction of new energy power stations, and the dedicated needs of other emerging fields have also injected strong development vitality into the special cable industry.
As a high-tech representative in the cable industry, special cables can only continuously improve their technological content and core market competitiveness through innovation and technological leadership. It is understood that there are currently more than 500 companies in China engaged in the production of special cables, but overall, the technological level of the special cable industry still lacks international competitiveness. The lack of top-tier technology and insufficient capacity cannot be ignored. Taking high-speed rail and oil exploration drilling platforms as examples, the annual capacity gap reaches tens of thousands of kilometers. At the same time, the production capacity of special cables for emerging energy technologies such as thermal radiation and photovoltaics is also severely insufficient. In fact, the development of China's special cables is different from that of ordinary cables; it is relatively "younger," which has led to a lack of specialization in related fields. Competitors will not readily give up this market gap; only by filling this gap through innovation can we withstand the pressure under the current circumstances, expand market space, and enhance enterprise competitiveness.
We also urgently need to learn from the experience of large-scale and standardized operations of foreign multinational special cable companies. The secret to success in special cables lies in technology and processes. In addition, there are raw materials. When it comes to the wire and cable industry, even laymen first think of the raw material issue. The wire and cable industry is a major consumer of materials; this is a common understanding. Raw materials have always been a bottleneck restricting the development of special cables. China's cable industry uses approximately 4.4 million tons of copper and 2 million tons of aluminum annually. According to statistics, China's annual cable output value has exceeded one trillion yuan, with copper core cables accounting for as much as 97%. Such a huge copper consumption provides some support for copper prices, and the production costs of cable manufacturing enterprises remain high. Once international copper prices fluctuate, domestic special cable manufacturers are often affected. This requires us to find relevant alternative products.

Market Innovation

In addition to product innovation, market innovation is also necessary. The most representative aspect of market innovation is product export and overseas factory construction and competition. Taking special cables as an example, it is clear that there is still a significant technological difference between domestic special cables and imported products (especially those from well-known cable manufacturers). This is because the development of special cables in European and American countries started more than half a century earlier than in China, and they are relatively ahead in terms of both experience and technology. However, it is undeniable that China's special cable industry is catching up rapidly. For example, military-grade special shielded cables, aerospace silane cross-linked wires and cables, and high-temperature, high-conductivity power transmission cables have already broken free from foreign technological monopolies.

Currently, some well-known Chinese wire and cable manufacturers are also going global and participating in international market competition. They actively expand international markets with an international perspective, strengthen their overseas market layout, and have built overseas marketing networks. More importantly, this competitive process has tempered these companies, broadened their horizons, increased their knowledge, and accumulated experience. It has also enhanced their international reputation, improved their image, and improved their international competitiveness.

In terms of specific competitive strategies, the approach of General Cable is worth learning from. Recall how General Cable entered the Chinese market? After completing the acquisition of Alcoa China, General Cable in 2013 took a series of strong measures to seize the Chinese market: launched enterprise-level mobile applications ("App"), established a global R&D center in China, appeared at the 2013 Shanghai International Electric Equipment and New Technology Exhibition, and jointly conducted life-cycle assessment research with the Shanghai Cable Research Institute. General Cable's strategy in the Chinese market was meticulously planned and solid.

So, what preparations should Chinese wire and cable manufacturers make to go global and highlight their advantages in competition? First, to improve the international competitiveness of China's wire and cable industry and enable it to enter a healthy and rapid development track, strategic adjustments, standardized industry development systems, solutions to major institutional and mechanism problems in the industry development process, strengthening technological innovation and research and development, and continuous transformation and upgrading are necessary to transform wire and cable products from low-end and mid-range to high-end, sophisticated, and cutting-edge products. Second, continuously improve the quality of wire and cable products and ensure product quality and safety. Finally, accelerate the elimination of backward production capacity and optimize the structure of the wire and cable industry. Only in this way can China's wire and cable industry take more solid steps in its internationalization process and usher in a broader development space.
In short, traditional manufacturing is currently facing severe pressures and challenges. The wire and cable industry must actively seek innovation and create opportunities and solutions through transformation and upgrading. Only by reforming and seeking breakthroughs in products, processes, technology, markets, and operations can breaking through the ice become a matter of days.