Melbourne, Australia (PRWEB) August 07, 2012
The Copper Tubes and Wire Manufacturing industry has had its ups and downs over the past few years as copper prices plummeted before regaining value, demand from downstream markets has dwindled and the Australian dollar has been high. The industry is largely dependent on these factors, and as a result has faced some tumultuous years. Growth has returned in the past two years as the industry has become more stable and conditions have improved. According to IBISWorld industry analyst Jeremy Edwards, “The industry is expected to grow at an annualised 1.6% over the five years through 2012-13, to be worth $3.48 billion.” Revenue is forecast to grow by 2.7% in 2012-13 as higher demand both locally and internationally drives growth. The Copper Tubes and Wire Manufacturing industry has a medium level of market share concentration. MML Holdings Pty Ltd and Fletcher Building Limited are the two major players in the industry.
The onset of the economic downturn in late 2008 hit downstream industries hard. World copper prices were unstable, dropping by almost 30% before reaching record highs within a year. Both business and consumer sentiment were low and credit constraints increased. Consequently, demand for copper tube and wire goods weakened. Exacerbating these woes was an unfavourable Australian dollar as the industry is heavily reliant on trade. Edwards adds, “as the dollar has remained high for much of the past five years, exports have struggled and imports have dominated the local market”. However, the Copper Tubes and Wire Manufacturing industry has the distinct advantage of manufacturing a product that is highly sought after by close neighbour and economic powerhouse China.
Moving into the next five years, growth from both South Korea and China will help the industry perform at a higher, more stable rate. Revenue is expected to grow as consumer and business confidence return, worldwide construction will be revitalised and aid growth in the industry. Both imports and exports are forecast to grow as international demand fuels exports and the high Australian dollar incentivises businesses to source outside of the country. Establishment per enterprise figures are expected to increase as the industry faces a period of consolidation, in which businesses with higher economies of scale and low cost structures are better able to compete with incoming competition from global markets.
For more information, visit IBISWorld’s Copper Tubes and Wire Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes firms that are involved in rolling, drawing or extruding non-ferrous metals (except aluminium) into primary shapes such as tubes, sheets or shaped sections. They also manufacture non-ferrous metal powders or flakes. The key products manufactured by the industry are copper tubes and wire, with the exception of insulated wire.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.