The power industry has long been a pillar industry of our country, occupying a significant position in the national economy. With the rapid economic development of our country since the 1990s, the wire and cable manufacturing industry, as an important link in the power industry's industrial chain, has also flourished. Especially in recent years, as our country has faced bottlenecks such as energy and power shortages in economic development, the state has continuously increased investment in the power sector, enabling this industry to enter a period of rapid development.
For a long time, the power industry in our country has had the phenomenon of "emphasizing power generation while neglecting the power grid". The ratio of power generation to the power grid is 7:3, while in developed countries, this ratio is basically 5:5. As a result, the bottleneck in power transmission and transformation has restricted the power supply. This will undoubtedly bring favorable development opportunities for power grid construction.
The power cable manufacturing industry, which belongs to the primary equipment category of power transmission and transformation, has relatively low technical content and a low entry threshold. The main users are the State Grid Corporation. This market structure has led to a partial loss of pricing power for many equipment suppliers. After rapid expansion, the entire industry is now facing the problem of rising raw material prices. The competition within the industry has become increasingly fierce, and profits are showing a downward trend. The secondary power transmission and transformation equipment industry is a relatively stable industry with less cyclical fluctuations. It involves high-tech fields and has high technical barriers, being monopolized by a few large companies. Given the development prospects of China's power industry, the wire and cable manufacturing industry, as a sub-industry, still has good expansion space under the promotion of the overall environment.