Industry Analysis & Industry Trends
Expansion in building activity, corporate investment and industrial activity have spurred demand for wire and cable as the economy struggled to recover. Additionally, emerging nations are requiring more wire and cable to support their growing infrastructure. The industry will continue globally growing in the coming years, as higher profit margins, as a result of rising revenue and falling costs, entice new entrants... 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