Wired up: High import penetration inhibited profitability, but stabilizing copper prices will spur growth

While improved economic conditions have bolstered downstream demand for the products made by operators in the Wire and Cable Manufacturing industry, this demand has been outweighed by high import penetration and falling world copper prices over the past five years. Therefore, industry revenue contracted over the five years to 2017, as operators were forced to lower product prices to pass along falling input costs to consumers and remain competitive, resulting in decreased revenue and lower profit margins. However, industry revenue is expected to rebound over the five years to 2022, as the world price of copper is expected to stabilize. Furthermore, rising disposable income is expected to drive consumer electronics sales, leading to an increased demand for electronic wire and cable...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Declining industry revenue is indicative of the industry’s deteriorating trade position
  • Industry operators have been forced to pass along lower copper input prices to consumers
  • Favorable economic conditions are expected to stimulate downstream demand for wire and cable
  • Industry Report - Industry SWOT Analysis Chapter

    The Wire and Cable Manufacturing industry is in the mature phase of its life cycle. Over the 10 years to 2022, industry value added (IVA), which measures the industry's contribution to GDP, is expected to stagnate, while GDP is expected to grow at an annualized rate of 2.1%. Although IVA is stagnant while GDP is increasing, the overall health of the US economy strongly affects the industry's largest sources of demand, indicating a mature industry. Major sources of demand are the utilities, construction and telecommunications markets, which are expected to grow over the 10 years to 2022. Reliance on these deeply entrenched sectors is characteristic of a mature industry. Tho...purchase to read more.

    Additional Insights for the Wire & Cable Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wire & Cable Manufacturing Industry are

  • Access to the latest available and most efficient technology and techniques
  • Having contracts with large customers
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and World price of copper in the Wire & Cable Manufacturing industry impact industry performance..

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    What's in this report

    What is the Wire & Cable Manufacturing Industry?

    This industry manufactures insulated nonferrous wire and cable and fiber-optic cable used for power transmission and communication. This industry does not manufacture nonferrous wire or unsheathed fiber-optic materials, and instead uses wire and optical fiber manufactured by companies outside the industry.

    Industry Products
  • Electronic wire and cable
  • Telecom wire and cable
  • Power wire and cable
  • Building wire and cable
  • Fiber-optic cable
  • Other insulated wire and cable
  • Industry Activities
  • Manufacturing electronic wire and cable
  • Manufacturing telephone and telegraph wire and cable
  • Manufacturing power wire and cable
  • Manufacturing portable power cable
  • Manufacturing control and signal wire and cable
  • Manufacturing building wire and cable
  • Manufacturing apparatus wire and cable
  • Manufacturing other insulated wire and cable
  • Manufacturing magnet wire
  • Manufacturing insulated optical fiber cable
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • World price of copper
  • Demand from broadcasting and telecommunications
  • Government consumption and investment
  • Value of private nonresidential construction
  • Consumer spending

  • Current Performance
  • High import penetration
  • Declining input prices
  • Contracting capacity and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong domestic demand
  • Copper’s stabilization
  • Global wiring
  • Table: Wire & Cable Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wire & Cable Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Utilities
  • Construction
  • Transmission Line Construction
  • Electricians
  • Cable Networks
  • Wired Telecommunications Carriers

  • Key Selling Industries
  • Aluminum Manufacturing
  • Copper Rolling, Drawing & Extruding
  • Mineral Product Manufacturing
  • Plastic Pipe & Parts Manufacturing

  • Products & Services
  • Electronic wire and cable
  • Power wire and cable
  • Building wire and cable
  • Fiber-optic cable
  • Other insulated wire and cable
  • Telecom wire and cable
  • Chart: Wire & Cable Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Industrial markets
  • Power generation and transmission
  • Construction contractors and installers
  • Telecommunications and cable providers
  • Other
  • Chart: Major Market Segmentation for the Wire & Cable Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Wire & Cable Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wire & Cable Manufacturing Industry

  • Industry Globalization
    Southwire Company LLC, General Cable Technologies Corp., Encore Wire Corporation,
  • Table: Southwire Company LLC - financial performance
  • Table: General Cable Technologies Corp. - financial performance
  • Table: Encore Wire Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wire & Cable Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wire & Cable Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World Price of Copper (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Magnet Wire
  • An insulated copper or aluminum conductor used by major original equipment manufacturers and distributors.
  • Bandwidth
  • The total quantity of data an electronic device can transmit or receive.
  • Broadband
  • A type of data transmission by which a single medium (e.g. wire) can carry several channels at once.
  • Electrical Distribution
  • The transport of electricity along low-voltage wires, typically to end users.
  • Fiber-To-The-Premises (Fttp)
  • Fiber-optic cabling that facilitates simultaneous delivery of video, voice and data at very high speeds.
  • Insulating
  • The process of extruding PVC and then nylon (where applicable) over the solid or stranded wire.
  • Jacketing
  • The process of extruding PVC over two or more insulated conductor wires, with or without a noninsulated ground wire, to form a finished product.
  • Nonferrous Wire
  • A wire made from a soft metal such as aluminum or copper, compared with one that contains iron.
  • Pvc Blending
  • The process of mixing various raw materials to produce PVC.
  • Stranding
  • The process of twisting individual wire strands to form a single cable.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Wire & Cable Manufacturing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wire & Cable Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wire & Cable Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wire & Cable Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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