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Electric Cable and Wire Manufacturing in Australia Industry Market Research Report
From: Cardiff CABLE        PublicTime: 2014-10-21 0:00:00        View Count:2529

The popularity of smartphones and tablets has caused the Electric Cable and Wire Manufacturing in Australia industry to suffer over the past five years. For this reason, industry research firm IBISWorld has updated its report on the Electric Cable and Wire Manufacturing industry in Australia.

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.

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