After more than 30 years of rapid development, the era of China's manufacturing industry relying on low-cost and cheap labor is over. Whether it is the European debt crisis and the external pressure of developed countries returning to the manufacturing industry, or the internal laws of China's economic development, it is determined that China's manufacturing industry must find new growth methods. As an important part of the manufacturing industry, the same is true for the LED silicone wire and cable industry.

We know that the European and American sovereign debt crisis that originated in Europe has gradually developed from peripheral countries such as Iceland and Greece to core economies such as Italy and France in the past two years. The sovereign debt crisis in Europe and the United States has intensified and spread from the economic field to the social and political fields. This crisis is the continuation and deepening of the international financial crisis. It is the result of years of economic virtualization and industrial hollowing in Western countries, long-term implementation of deficit finance, high welfare systems, and debt-based consumption. It broke the old world economic cycle system, prompted Western countries to reflect on and adjust their development concepts, and promote profound changes in global economic governance models.

In terms of scale, China’s wire and cable industry is already large enough. China’s wire and cable industry plays an irreplaceable role in the global wire and cable industry. As early as 2011, the output value of Chinese wire and cable companies surpassed that of the United States, ranking first in the world. One. At present, the global wire and cable market has exceeded 100 billion euros. Within the global wire and cable industry, the Asian market accounts for 37%, the European market closes to 30%, the American market 24%, and other markets 9%. But objectively speaking, compared with the wire and cable industry in Europe and America, my country is still in a big but not strong situation, and there is still a big gap with foreign well-known high-temperature wire and cable brands.

The reason for this situation is that the manufacturing scale of China's wire and cable industry has increased at an astonishing speed, and the upgrading of technology and products is far behind the pace of the market. This has caused serious duplication of construction in the industry and formed production capacity. Problems such as surplus, insufficient effective supply, prominent structural contradictions, low input and output, and weak technological innovation. The wire and cable industry is a system industry. From the smelting of industrial raw materials, through product design, trial production, mass production, testing, use and integration of finished products, and even development to product recovery and recycling, it is an extremely complex process. . Seizing the good time of the times blindly expand and develop extensively. Although it can obtain economic benefits in a short period of time, it is difficult to form a scale and form a brand.

And affected by the economic situation at home and abroad, my country’s industry is currently facing four major problems: the return of developed countries to high-end manufacturing has increased the competitive pressure of my country’s Teflon wire products; and other surrounding developing countries have lower labor costs and The cost of production factors is competing with my country for low-end manufacturing; the cost of production factors such as labor costs in my country continues to rise, and corporate profits are compressed; my country is constrained by others in terms of core technology and lacks technological innovation capabilities.