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Electric Cable and Wire Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Feb 08, 2014, 14:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Fixed line investment was reduced across the communications sector, negatively affecting industry revenue.

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Melbourne, Australia (PRWEB) February 09, 2014 -- While the Electric Cable and Wire Manufacturing industry in Australia has fared well in comparison with many other manufacturing industries in the country, the industry has still been plagued by volatility and uncertainty. Industry revenue has been highly volatile. According to IBISWorld industry analyst Brooke Tonkin, “Soaring input prices, uncertainty in downstream markets, and the ongoing effects of the National Broadband Network (NBN) have all played their part in this volatility.” Overall, industry revenue is expected to decline at a compound annual rate of 1.5% in the five years through 2013-14. Although the industry is forecast to decline 3.5% to an estimated $1.7 billion in 2013-14, this does not quite paint the entire picture for the industry.

The telecommunications services sector performed poorly over the past five years, as the increased popularity of smartphones and tablets among consumers caused them to continue to shift away from fixed lines in favour of mobile technologies. Fixed line investment was reduced across the communications sector as a result, negatively affecting industry revenue. As larger telecommunications service providers increased investment in fibre-optic infrastructure, as part of the NBN scheme, this negative effect was softened slightly. Similarly, the construction and mining sectors did not perform as well in the past five years as they have done in preceding years. “The construction sector has struggled, with growth remaining relatively stagnant during the five-year period, contributing to demand volatility for electric cable and wire,” says Tonkin. While mining sector growth was consistent, growth was not as high during the peak of the mining boom, resulting in softened demand for the Electric Cable and Wire Manufacturing industry. The industry is characterised by a moderate level of market share concentration. The most significant companies are Nexans Australia Holding Pty Limited and Prysmian Power Cables and Systems Australia Pty Ltd.

It is expected that the revenue volatility of the past five years will continue over the next five years, though at a far lesser extent. Ongoing fluctuating growth levels in the downstream construction sector, combined with uncertainty surrounding the new NBN, are expected to cause this ongoing revenue volatility. However, industry revenue is expected to level and become steadier towards the end of the five years through 2018-19.

For more information, visit IBISWorld’s Electric Cable and Wire Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

The industry consists of enterprises that primarily manufacture electric or telephone cable, wire or strip, including stranded, braided or insulated non-ferrous wire, cable or strip.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

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.

Gavin Smith, IBISWorld, +61 396553838, [email protected]

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