wiredinUSA April 2013

Infrastructure boom strengthens industry

New analysis of the North American wire and cable materials market from Frost & Sullivan Analysis finds that the market earned revenues of $1.92 billion in 2012 and estimates this to reach $2.53 billion in 2018. The analysis covers power cables, building wires and communication cables. "Overhead lines are generally bare conductors, where air acts as the insulation; underground cables, however, require plastic insulation, jacketing and sheathing materials," said Frost & Sullivan chemicals and materials research analyst, Anita Pamu. "Thus, the growth of the underground T&D market will accelerate the sales of cable materials within this segment." While there is significant demand for new cables in the power sector,

there is little demand within the replacement market because the average lifespan of a power cable can range from 25 to 40 years, which translates to low replacement rates. The analysis concludes that, to stand out in a competitive commodity market,material suppliers shouldfocus on developing lighter compounds and reducing material costs. Resin and compound suppliers should seek to establish their presence in high-growth markets to sustain sales volumes. Suppliers that offer a wide range of cable-grade resins and compounds are much better able to retain existing customers and gain new business. “Analysis of the North American wire and cable materials market” is part of the Frost & Sullivan Materials Growth Partnership Service program.

wiredInUSA - April 2013

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