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Electronic Appliance Demand to Influence North America Wire and Cable Market Forecast

wire and cable

Electronic Appliance Demand to Influence North America Wire and Cable Market Forecast

The consistent need for high-speed internet services will enhance North America’s wire and cable market forecast, along with the higher adoption of IoT and smart devices. There has been a surge in the use of internet and telecommunication services as well as the incorporation of renewable energy sources with the expansion of the industrial sector.

Increasing demand for power supply from residential and commercial buildings and soaring investments in the implementation of smart grid infrastructure will boost the consumption of various types of electrical components in the coming years. Estimates suggest that the North American wire and cable market size will reach a yearly estimation of more than USD 40 billion by 2026.

High voltage networks will witness considerable deployment across the manufacturing sector owing to the rising need for bulk electricity transmission over long distances. The steady incline in developmental investments for various clean energy generation projects and augmenting demand for HVDC systems will stimulate the development of high voltage wire and cables in the U.S.

Furthermore, the rising production of power cables can be attributed to the intensifying governmental focus on generation as well as the transmission capacity of the cable components. Annual revenue from coaxial wire and cable technology in the North American market is anticipated to reach a significant share through the coming years owing to their high durability and ease of installation. Coaxial wire and cables ensure the transmission of large volumes of data at significant speeds and are extensively accessed by the internet and service providers in the region to effectively transmit video and audio data.

Consumer electronic applications are likely to gain traction in the overall industry over the coming years owing to the jump in household incomes and the decrease in electronic product costs. There has been a significant deployment of smart systems across the region. Consistent developments in the electronics sector have pushed the demand for multiple low-voltage components for products like smartphones, earphones, and Bluetooth speakers.

Wire and cable manufacturers in the North American geography are focused on new product launches, mergers, and acquisitions to gain a competitive edge over other participants while expanding their global presence. For instance, Belden, a leading wire and cable distributor, introduced the 10GXW Cable, a new CAT 6A cable that works on multi-gigabit connectivity and offers reliable connectivity infrastructure solutions that can be optimized for smart buildings.

The ongoing COVID-19 could have considerably influenced the regional trends owing to the excessive demand for high-speed internet with the regulation of work from home policies. Educational, healthcare, and services industries have brought in significant demand for reliable connectivity, putting a focus on strong cable infrastructure. Cablel Hellenic Cables Group, LAPP North America, Polycab, and Furukawa Electric Co. Ltd., are some of the major firms producing and supplying robust wires and cables across America.

Source: https://www.gminsights.com/industry-analysis/north-america-wire-and-cable-market

metal tank

The Pandemic to Undermine the Growth of the American Metal Tank Market

IndexBox has just published a new report: ‘U.S. Metal Tank (Heavy Gauge) Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

In 2019, the U.S. metal tank market increased by 2.3% to $7.7B, rising for the third year in a row after two years of decline. The pace of growth appeared the most rapid in 2014 when the market value increased by 5.2% against the previous year. As a result, consumption attained a peak level of $9.6B. From 2015 to 2019, the growth of the market remained at a lower figure, hampered by both an economic slowdown and lower metal prices which plummeted amid a sharp drop of global oil and commodity prices.

Metal tanks, as an element of engineering infrastructure, are widely used in various industries, particularly, in oil and gas extraction and processing, as well as in the chemical industry, and transport facilities. Therefore, the key factor determining the development of the market is the dynamics of the industrial sector, which, in a broader context, reflects the overall GDP growth. Another particular fundamental is the state of the global oil market which determines capital investment in the oil and gas sector.

According to the World Bank outlook from January 2020, the U.S. economy was expected to slow down to +1.7% per year in the medium term, hampered by increasing global uncertainty, trade war, and slower global growth. In early 2020, however, the global economy entered a period of the crisis caused by the COVID-19 epidemic, due to which most countries in the world put on halt production and transport activity. The result will be a drop in GDP relative to previous years and an unprecedented decline in oil prices.

The U.S. is struggling with a drastic short-term recession, with the expected contraction of GDP of approx. -6.1% in 2020, as the hit of the pandemic was harder than expected, and unemployment soared due to the shutdown and social isolation.

The industrial sector has proven vulnerable to the pandemic as due to quarantine measures, industrial facilities were paused, and the drop in incomes of the population makes the growth of end markets unfeasible. The oil and gas sector also challenges a drastic drop in drilling activity and oil extraction which is due to much lower demand for oil amid the pandemic and the related dramatic drop in oil prices.

Tight financial conditions and uncertainty regarding the length of the pandemic and the possible bottom of the related economic drop, as well as high volatility of financial markets, and political tensions between the U.S. and China, disrupt capital investments in the immediate term, which is to put a drag on the metal tank market.

In the medium term, should the pandemic outbreak end in the second half of 2020, the economy is to start recovering in 2021 and then return to the gradual growth, driven by the fundamentals that existed before 2020.

Taking into account the above, it is expected that in 2020, the consumption of metal tanks will drop by approx. 6%. In the medium term, as the economy recovers from the effects of the pandemic, the market is expected to grow gradually, with an anticipated CAGR of +0.5% for the period from 2019 to 2030, which is projected to bring the market volume to $8.2B (in fixed 2019 prices) by the end of 2030.

The U.S. Metal Tank Market Remains to a Large Extent Dependent on Imports

In value terms, metal tank production amounted to $7.7B in 2019. Over the period under review, production continues to indicate a perceptible downturn. The U.S. metal tank market remains dependent on imports: over the period under review, the share of imports in terms of total metal tank consumption in the U.S. increased from 12% in 2007 to 17% in 2019 (based on value terms). It means that the U.S. metal tank market remains an attractive destination for foreign manufacturers.

Metal tank imports declined dramatically to $1.3B (IndexBox estimates) in 2019. The total import value increased at an average annual rate of +3.4% from 2013 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years.

In value terms, China ($492M) constituted the largest supplier of metal tanks to the U.S., comprising 37% of total imports. The second position in the ranking was occupied by Canada ($181M), with a 14% share of total imports. It was followed by Mexico, with an 11% share.

From 2013 to 2019, the average annual rate of growth in terms of value from China stood at +9.3%. The remaining supplying countries recorded the following average annual rates of imports growth: Canada (+0.2% per year) and Mexico (+9.8% per year).

Companies Mentioned in the Report

Enerfab, Inc., Paul Mueller Company, Caldwell Tanks, Inc., Modern Welding Company, Inc., Flexcon Industries, Inc., Imperial Industries, Inc., Walker Engineered Products, Taylor-Wharton International LLC, CST Industries, Inc., Permian Tank & Manufacturing, Nooter Construction, Inc., Polar Tank Trailer, Mid-State Tank Co., Fort Worth F and D Head Company, James Machine Works LLC, Rocky Mountain Fabrication, Phoenix Fabricators & Erectors, HMT LLC (Pasadena Tank Corporation), Washington Metal Fabricators (WMF), Truenorth Steel,  Arrow Tank and Engineering Co, Helgesen Industries, Mississippi Tank and Manufacturing Company, Alonso & Carus Iron Works, Cimarron Energy, Tankcraft Corporation, Highland Tank & Manufacturing Company, Inc.

Source: IndexBox AI Platform

conveyor

The U.S. Conveyor and Conveying Equipment Market to Lose Growth Momentum Due to the Pandemic

IndexBox has just published a new report: ‘U.S. Conveyor And Conveying Equipment Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

The COVID-Related Recession Is to Undermine the Growth of the Industrial Sector, Which Is to Hamper Conveyor Market Growth

The U.S. conveyor and conveying equipment market expanded sharply to $10.8B in 2019, picking up by 5.1% against the previous year. This figure reflects the total revenue of producers and importers (excluding logistics costs, taxes, and tariffs, which will be included in the final consumer price). The market value increased at an average annual rate of +4.4% over the period from 2013 to 2019; however, the trend pattern remained relatively stable, with only minor fluctuations throughout the analyzed period. Over the last three years, it increased robustly, driven by the rising economy and investment. In physical terms, the market volume reached approx. 1.8M units, rising by +11.9%.

Conveyors and conveying equipment, as the element of engineering infrastructure, are widely used in various industries and transport facilities. Therefore, the key factor determining the development of the market is the dynamics of the industrial sector, which, in a broader context, reflects the overall GDP growth.

According to the World Bank outlook from January 2020, the U.S. economy was expected to slow down to +1.7% per year in the medium term, hampered by increasing global uncertainty, trade war, and slower global growth. In early 2020, however, the global economy entered a period of the crisis caused by the COVID-19 epidemic, due to which most countries in the world put on halt production and transport activity. The result will be a drop in GDP relative to previous years and an unprecedented decline in oil prices.

The U.S. is struggling with a drastic short-term recession, with the expected contraction of GDP of approx. -6.1% in 2020, as the hit of the pandemic was harder than expected, and unemployment soared due to the shutdown and social isolation.

The industrial sector has proven vulnerable to the pandemic as due to quarantine measures, industrial facilities were paused, and the drop in incomes of the population makes the growth of end markets unfeasible, thereby hampering any expansion of the industrial sector. Tight financial conditions and uncertainty regarding the length of the pandemic and the possible bottom of the related economic drop, as well as high volatility of financial markets, not to mention rising political tensions between the U.S. and China, disrupt capital investments in the immediate term, which is to put a drag on the conveyor market.

In the medium term, should the pandemic outbreak end in the second half of 2020, the economy is to start recovering in 2021 and then return to the gradual growth, driven by the fundamentals existed before 2020 and boosted by support measures imposed by the government.

Taking into account the above, it is expected that in 2020, the consumption of conveyors and conveying equipment will drop by approx. 6%. In the medium term, as the economy recovers from the effects of the pandemic, the market is expected to grow gradually, with an anticipated CAGR of +0.2% for the period from 2019 to 2030, which is projected to bring the market volume to 1.8M units by the end of 2030.

Canada and Mexico Remain the Key Foreign Market for Conveyor and Conveying Equipment Exports from the U.S.

In 2019, conveyor and conveying equipment exports amounted to $1.1B (IndexBox estimates) in 2019, decreasing for the second consecutive year. Canada ($383M), Mexico ($194M), and China ($58M) appeared to be the largest markets for conveyor and conveying equipment exported from the U.S. worldwide, together comprising 59% of total exports. Brazil, Chile, India, Italy, Viet Nam, Colombia, Spain, Hong Kong SAR, and Kuwait lagged somewhat behind, together comprising a further 11%.

Viet Nam recorded the highest growth rate of the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Conveyor and Conveying Equipment Imports into the U.S. Increased Robustly

In value terms, conveyor and conveying equipment imports dropped slightly to $2.4B (IndexBox estimates) in 2019. In general, total imports indicated a strong growth from 2013 to 2019: its value increased at an average annual rate of +28.1% over the last six years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, imports increased by +56.5% against 2013 indices. The pace of growth was the most pronounced in 2017 when imports increased by 37% year-to-year. Over the period under review, imports reached the maximum at $2.4B in 2018 and then contracted in the following year.

In value terms, the largest conveyor and conveying equipment suppliers to the U.S. were Canada ($544M), Germany ($352M), and Mexico ($209M), with a combined 47% share of total imports.

Mexico saw the highest growth rate of the value of imports, in terms of the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Companies Mentioned in the Report

Intelligrated Systems of Ohio, Esco Corporation, Jervis B. Webb Company, Nesco, Superior Industries, United Conveyor Corporation, Grob Systems, Barry-Wehmiller Container Systems, Roach Manufacturing Corporation, Arrowhead Conveyor Corporation, Joy Global Underground Mining, Diversified Conveyors, Western Pneumatics, Joy Global Conveyors, Intralox, Intelligrated Systems, Keneco, Emerging Acquisitions, Translogic Corporation, Fki Logistex Automation, Hillenbrand, Gower Corporation, Continental Global Group, Material Control Inc., Laitram, Intelligrated Systems, Arrowhead Systems, US Test Company 454, Dearborn Mid-West Company

Source: IndexBox AI Platform