Industry Analysis & Industry Trends
China's Wire and Cable Manufacturing industry developed rapidly to 2008 due to very strong domestic demand and high economic growth across China, with low growth in 2009. The industry is a major consumer of copper and aluminum, the fundamental raw materials for wire and cable production.
Strong demand for the industry's products stimulated rapid industry expansion. China's electricity and power sector consumes about 45% of the wires and cables manufactured in China each year, which has a major influence on this industry. In line with its long-term economic development program, China will increase its power generating capacity by 35 million to 40 million kilowatts by 2020, which will be a major demand source for this industry.... purchase to read more
Industry Report - Industry Investment Chapter
The Wire and Cable Manufacturing Industry in China is highly capital-intensive. Production tends to rely on large-scale investment in capital equipment. Larger firms tend to be more technologically-advanced than smaller companies, while small companies generally utilize greater number of workers and rely less on advanced equipment and machinery.
Overall, the capital to labor ratio in this industry is expected to be around 1:1.9 in 2010. This means that for each input of capital costs, there is about two labor cost inputs. However, the low cost of labor in China understates the labor input and distorts the ratio in favor of capital, which gives the impression that the industry is more capital-intensive... purchase to read more