Bouncing back from the Great Recession?Posted On: 12-04-2017 By: Katherine Eveland
Looking back at the years between 2009 and 2016, we can see for the global cable sector, there was an absolute decline (less than 1%) in cable volumes shipped by 12,000 cable makers worldwide. Particularly the H1 2016 period, which was one of the worst periods of economic growth since H1 2009.
But by the late summer 2016, stronger order levels across multiple industries helped drive confidence, investment, and demand for a range of industrial commodities, including copper, which continued into Q1 2017. One market certainly seems to have turned the corner since the 2008/2009 recession – the US economy.
Going around the corner
Back in Q1 2009, the US was losing around 750,000 jobs per month. Fast forward 8 years and today the economy has shown the longest period of private sector job creation since records began. A reflection of the market sentiment is the Dow Jones Industrial Average, which increased 210% from its low point of 6,450 in March 2009 to 19,887 in late January 2017. However, it has taken several years for the construction sector to head back to the levels seen before the recession.
Construction spending in the US has been rising, with spending in February the highest seen in the last decade. Housing Starts and Private Residential Construction seem to be picking up at a steady pace and are one of the bright spots of the US economy in Q1 2017. This fed through to solid demand in the construction and building wire markets. Many in the market also believe that there is a solid pipeline of large commercial and industrial projects to come through 2017 and 2018.
Market supply side news
US market leader, Southwire, acquired leading building wire manufacturer United Copper Industries (UCI) in Q3 2016 from KPS Capital Partners. UCI operates a 39,500m2 building wire plant in Denton, Texas with 300 employees.
Southwire also announced it has closed its Flora, Illinois plant in January 2017. This consolidation, combined with stronger demand levels, will likely feed through to more solid operating margins for the leading cable makers in the US in H1 2017.
Make sure your analysis is data led
We are constantly working to keep our US market and plant data up-to-date. Integer has recently released the latest update of its North America Plant Databases providing full coverage of 600 wire and cable manufacturing plants across USA, Mexico, and Canada. Each Database includes addresses and zip codes for mapping the leading 80 cable factories in North America that produced 80% of the wire and cable production in 2016. See pricing here >>
Take a look inside the databases – register or log to our website to download a example of our US Database. Click here to access>>
What is included:
- Two manufacturing plant locations
- Full list of manufacturing companies covered in the Database
- Full database structure
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