Despite improving downstream conditions, industry operators have faced increasing competition from foreign producers.
New York, NY (PRWEB) March 29, 2015
Cable and wire are the backbone of the modern information age, providing individuals with power, light and communication. During the past five years, increased construction activity and expanded energy infrastructure have spurred demand for power and building wire and cable. “Moreover, an improving economy has boosted demand from the manufacturing sector, further benefiting the industry,” according to IBISWorld Industry Analyst Lucas Isakowitz. As a result, revenue for the Wire and Cable Manufacturing industry is expected to grow an average annual 2.3% during the five years to 2015, to reach $2.2 billion. In 2015, industry revenue growth is forecast to slow to 1.4% amid fears regarding a potential housing bubble, which have constrained construction activity.
Despite improving downstream conditions since the recession, industry operators have faced increasing competition from foreign producers for much of the five-year period. “The high costs of manufacturing in Canada reduced the global competitiveness of domestically produced wire and cable while increasing the appeal of low-cost foreign imports,” says Isakowitz. As a result, net exports of wire and cable have been steadily decreasing for the past five years. Import values are expected to grow an annualized 5.7% in the five-year period, to account for nearly 40.0% of domestic demand, while export values are expected to decline an annualized 1.4% during the same period. Moving forward, pressure from international manufacturers is expected to continue limiting industry growth, forcing Canadian manufacturers to increasingly offshore production to remain competitive.
Despite ongoing global competition, the industry is anticipated to experience steady growth in the five years to 2020. Healthier construction markets and planned power transmission overhauls are expected to drive demand for building and power wire and cable. Additionally, advances in fibre-optic cable technology will likely keep demand for communication wire and cable high. As a result, industry revenue is anticipated to grow in the five years to 2020.
For more information, visit IBISWorld’s Wire and Cable Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry insulates fibre-optic cable and manufactures insulated nonferrous wire and cable from nonferrous wire drawn in other establishments.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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