Taking advantage of relatively low labour costs and a favourable location, much production of automotive wire and wiring harness has shifted from Western Europe to Tunisia and Morocco. As much as 8% of the world’s wiring harnesses are produced in Tunisia and around 5% in Morocco, according to Integer’s latest study – Wire & Cable Focus Report: Middle East and North Africa Markets, which forecasts potential demand for MENA wire and cable to 2017.
Strong orders and heavy investment – assessing world’s leading cable companies’ outlook for 2012
The market for insulated wire and cable in the Middle East and North Africa (MENA) has experienced highs and lows in recent years. The rally in oil prices from the mid-2000s to 2008 fuelled a boom in demand for cable from construction and infrastructure developments in the GCC, resulting in many companies adding cable making capacity. Meanwhile, European OEMs actively invested in North Africa’s wiring harness assembly industry, boosting local wire and cable consumption.
The wire and cable market in the Gulf Cooperation Council (GCC) experienced a period of extraordinary growth from the early 2000s until 2008. This was largely driven by a boom in construction throughout the region, which in turn was fuelled by strong oil prices. Demand dropped in 2009 as a consequence of the economic crisis, which hit hard the construction-driven economy of Dubai in particular and deeply affected local cable producers. In the last few years Integer has been constantly monitoring the evolution of the cable industry in the GCC, and analyzing the way it has adapted to new market conditions.
A new, ground-breaking Focus Report, revealing prospects and opportunities in the MENA cable markets – released this week!