Industry Analysis & Industry Trends
Cable and wire are the backbone of the modern information age, providing individuals with power, light and communication. The universal demand for these services has kept demand high for wire and cable. This trend will continue as demand for reliable and efficient energy and data communications will promote demand for the industry. Additionally, expected upgrades in infrastructure and increased capacity of the transmission grid are forecast to further stimulate demand for power and communications cable... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry are significant and include the cost of establishing manufacturing facilities, customer relationships, product distribution arrangements, achieving economies of scale and scope and developing technology.
New entrants need to gain a viable customer base to keep manufacturing facilities at full capacity. Underused plants reduce profitability. In some markets, such as cable supplied to utilities and telephone companies, large manufacturers enter into multiyear supply arrangements with major customers.
Having large scale operations is important for lowering costs. Large companies are better able to negotiate lower prices with suppliers of raw materials. The breadth of products and inventory availability also give large companies a competitive edge... purchase to read more